Continued from page 72
than in any other sub-sector of the UK.” The report notes of UK travel
and tourism: “The net effect is a large travel spending deficit which contributes to the UK’s current account deficit.” Chapman suggested: “The
primary function of UK airports is to send UK citizens overseas on holiday. In any year, twice as many fly out of the UK as in, giving a net travel spending deficit of £43 billion, or £75 billion if you include spending on air travel.” Of the business case for
growth, he argued: “This case is the weakest. UK business passenger numbers peaked in 2006. Early signs are the decline accelerated due to Covid. Growth isn’t required to service business.” Yet he noted at least eight
UK airports have produced analysis to support expansion applications “claiming it will create business travel”. The report recommends
the government review the case for airport expansion and “consider the consistency of its air capacity policies with those of climate change”. It also calls for improvements in the economic impact analysis in planning decisions and scrutiny of “claims around growth in business passenger departures” and “the credibility of data on [aviation’s] economic benefits”. Chapman argued: “Jobs are
falling, wages falling, business travel declining, money flowing overseas and climate damage accelerating. There is an unwillingness by politicians to grab the bull by the horns on this. We’re locking in expansion without discussing the trade-offs.” The ‘Losing Altitude’ report is available at
neweconomics.org.
CAA forces Wizz Air to honour passenger rights
Ian Taylor
The Civil Aviation Authority (CAA) took serious enforcement action against Wizz Air last week over the carrier’s failure to comply with passengers’ rights when flights were delayed or cancelled. Wizz Air gave legal undertakings
to honour passengers’ rights, review all passenger ‘welfare’ claims relating to flights to or from the UK on or after March 18, 2022, and reopen passenger welfare claims going back six years. The CAA said it acted after
receiving “hundreds” of passenger complaints, the most ever received about a single airline. Its action, requiring the airline to re-examine claims over six years, is unprecedented. Wizz Air had failed to meet its
obligations to provide alternative flights when services were delayed or cancelled, failed to provide care and assistance to passengers,
Paul
Smith, CAA
worst airline for complaints” at the time and questioned the number of County Court Judgements (CCJs) “against Wizz Air [that] remain unpaid”. In a statement, Wizz said it had
paid “more than 70% of CCJs” against it, “10% are in progress and the remaining 20% are being identified and processed”. CAA joint-interim chief executive
“significantly delayed” dealing with claims and wrongly rejected claims. The CAA said it would monitor
the airline over the coming months, with any failure to comply likely to lead to court action. The enforcement came seven
months after the CAA expressed “significant concerns” last December over high volumes of Alternative Dispute Resolution (ADR) complaints about Wizz and delays in the airline “paying passengers what they’re owed”. It noted Wizz “ranked as clearly the
Paul Smith denounced Wizz Air’s treatment of passengers as “unacceptable” and said: “This sends a clear message that airlines must meet their obligations when they cancel or delay a flight.” He added: “We’ll watch the
situation closely to check passengers receive what they are owed and that Wizz Air’s policies have improved.” Wizz Air UK managing director
Marion Geoffroy said: “We’ve learnt from this experience and taken significant steps to make our operation more robust. We know we need to rebuild trust.”
Royal reports ‘record’ $3.5bn quarterly revenue
Royal Caribbean Group reported a record $3.5 billion in revenue and a profit of almost $459 million for the three months to June. The group, which operates
Royal Caribbean International, Celebrity Cruises and Silversea Cruises, said strong prices in Europe and North America combined with increased onboard
70 3 AUGUST 2023
spending produced record results, with booking volumes “significantly higher” than in the same period in 2019 and “record pricing levels”. Customer deposits were also at
a “record high” at the end of June at $5.7 billion, up from the previous record of $5.3 billion in March. Net yields in the quarter were
12.9% up on 2019. The group noted demand for
2023 sailings “significantly exceeded expectations” and bookings for 2024 “are up significantly versus prior years, at record prices”. Demand from North America
“remained incredibly strong” while
Utopia of the Seas
demand in Europe “accelerated”. Group president and chief
executive Jason Liberty hailed “exceptionally strong” demand and said: “Our brands continue to fire on all cylinders. We’ve seen another step change in booking volumes and pricing.”
travelweekly.co.uk
PICTURE: Tim Anderson
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