NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK
Arrangements in the UK will be required to comply with insolvency-protection obligations under the PTRs (Atol, bonds, insurance or trusts), taking us back to where we were before July. “It will be a major concern to
the UK industry that EU states will be unlikely to recognise UK insolvency protection. Traders may need, once again, to comply with multiple insolvency and licensing regimes across the EU. “Similarly, EU-based traders
that mark-et and sell packages in the UK will be required to comply with UK insolvency- protection rules. “In the circumstances, it
makes sense for larger travel firms to consider setting up in another EU state to avail themselves of the mutual- recognition arrangements and avoid having to apply for multiple EU licences. “The thinking of regulators
is clear. The CAA ‘withdrew’ the Atols of several EU firms without a UK place of establishment at the end of September. In the event of no deal, they will have to reapply for Atols. “Similarly, UK tour
operators without a place of establishment in Ireland have been advised by the Irish Commission for Aviation Regulation that their Irish licences will not be renewed at the end of October. “Surely it is not beyond the
wit of UK and Irish regulators to allow an interim renewal of licences, especially as many licences run until the spring 2019 renewals anyway? “The CAA and Abta welcomed
PTR reform and strongly argued for consumer protection to be based not on the place of establishment but the place of sale. A no-deal Brexit could deliver their wish. But I wonder how much this will ultimately cost the UK travel industry?”
CAA probes ‘unnecessary’ spend on allocated seating
Ben Ireland
ben.ireland@
travelweekly.co.uk
UK air passengers could be “unnecessarily” paying up to £175 million a year for assigned seats to sit together on flights, according to CAA research.
In an interim report on airline seating charges published last weekend, the CAA suggests UK consumers are paying between £160 million and £390 million a year for assigned seats – as much as half of it without a need. The CAA began an investigation
into airline seat pricing in February. In a survey of more than 14,000 consumers, it found “having to pay in advance to sit together was one of the biggest concerns for most people”. It commissioned further
research “that found customers were confused” by variations in airline seating polices, and that the 10 biggest carriers in the UK all received complaints about the practice – with one airline receiving almost 3,000 last year. The CAA said: “Passengers with
reduced mobility may have paid to sit with a carer when the airline would have sat them together for free [and] parents highlighted concerns about being separated
Cox & Kings sells activity operator PGL for £467m
Cox & Kings has agreed a £467 million deal to sell schools and activity holidays operator PGL to Midlothian Capital Partners and a consortium of investors. PGL and holding company HB Education are part of the
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travelweekly.co.uk 1 November 2018
SEATING: ‘People might not understand the likelihood of being split up’ £175m
Amount passengers may have spent to sit together, CAA suggests
from children, particularly those under 12.” The regulator concluded: “People might not understand the likelihood of being split up, leading them to pay the optional fee even when the chances of being split up are low.” It found consumers were likely to pay between £5 and £30 for an
Holidaybreak group and include the Studylink, NST student travel network and European Study Tours brands. Cox & Kings paid £321 million for the Holidaybreak group in 2011. Investment company Midlothian
bought UK holiday-park operator Park Leisure last year. It has offices in London and Connecticut. Cox & Kings chief executive
Peter Kerkar described the sale as part of “efforts to reduce debt
assigned seat, but costs could rise to £100.
CAA policy director Tim Johnson said: “Charging for allocated seating has become part of airlines’ pricing strategies, which can impact on those with accessibility needs and those travelling with young children. “We are also concerned about
how uneasy it is to compare prices and make an informed buying decision. We’re proposing a new framework to assess airline seating practices. “Alongside the framework, we’ll
be working with airlines to explore ways to make prices clearer and more transparent.”
and focus on high-growth asset- light businesses”. Midlothian said the businesses
formed an “industry-leading operator within the outdoor activity and educational travel sectors” with scope for growth in the UK and overseas. Neil Currie, Midlothian partner and HB Education chairman-designate, said: “We’re delighted John Firth and Peter Churchus have agreed to remain with the company.”
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