CAA invites ‘tenders for failures’ Ian Taylor


The CAA has invited businesses to tender for the takeover of holiday bookings of failed companies, heightening fears of a spate of failures in coming weeks. A majority of Atol licences fall due


for renewal at the end of this month. Alan Bowen, legal advisor to the


Association of Atol Companies, said: “Many Atol-holders assume the CAA must be expecting a mass of failures which would require repatriation or refunds.” However, a senior industry


source described the CAA’s action as “sensible contingency planning”. Bowen told Travel Weekly: “The


CAA has asked before if people would take over bookings – it did when Thomas Cook failed. But people have never seen anything like a formal tender process. It looks like planning for failures.” Bowen said: “None of my


clients wanted to take on the risk. Companies fear if they take over bookings they will face having to refund customers and they don’t want the hassle.” He warned: “If this goes on, we’re


going to see mass failures. If we lose Portugal and Greece [from the travel corridors list] there will be failures this month. The problem will be for those companies living hand to mouth before this started.”


Uncertainty over quarantine fuels industry dismay


Ian Taylor


Reports the government is poised to reintroduce quarantine rules on travel from Portugal triggered widespread dismay amid industry calls for ministers to switch to regional restrictions and testing travellers. Portugal was only added to the


‘travel corridors’ list on August 22. Switzerland, the Czech Republic and Jamaica were removed from the list on Saturday, with Cuba added. An aviation source involved in


4 3 SEPTEMBER 2020


talks with the government warned: “Removing Portugal would further impact on passenger confidence.” An airline source agreed: “It


will add to public uncertainty. The government needs to come forward with a testing regime. We want a policy decision.” The aviation source insisted:


“Government statements have not been positive, but we still think we can get somewhere on testing.” Ministers have been considering


testing passengers on arrival and again five to eight days later as part of a review of quarantine measures.


The CAA is


conscious of the limits to its in-house capacity. It’s sensible contingency planning


The industry source agreed:


“There is a lot of work to do for a fair few smaller companies, [but] the CAA has done this before. The CAA is conscious of the relative limits to its in-house capacity. It’s sensible contingency planning.” Travel Weekly understands


the CAA has previously used a ‘fulfilment partner’ to help with


Atol-holder failures and put the contract out to tender in the interests of ‘good governance’. Abta chief executive Mark Tanzer


told Travel Weekly: “A lot of members have taken difficult measures to get in shape for the September Atol renewals, talking to their financial providers. People have been taking steps in any way they can to prepare themselves.” He insisted: “These are good


businesses. Even the most pessimistic people don’t think the travel market has disappeared. It’s a question of when it’s going to come back and making sure we build confidence to


get it back as quickly as possible.” i Tanzer interview: Business, back page


Carvoeiro, Portugal


The source said: “We don’t


know the outcome of the review. The government appeared to be converging on a position of tests on arrival and five or eight days [later]. “We’ve been told testing [solely]


on arrival has limited effectiveness. [But] we want the principle that Covid tests can reduce quarantine recognised so we can indicate the direction of travel to consumers.” The airline source noted “airlines


would much prefer a single test at minimal cost” and warned a decision would not produce an immediate relaxation, pointing out: “There is


a difference between a decision on testing and starting testing. It’s not something that can be put in place within days.” Industry leaders hit out at the


government. Willie Walsh, head of British Airways parent IAG, accused ministers of “using arbitrary statistics to ban 160 countries and destroying the economy”. Tui UK head Andrew Flintham


called for “regional travel corridors” that might allow travel to the Algarve to continue. However, the government has already ruled these out other than to islands.


travelweekly.co.uk


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