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BUSINESS NEWS


Aviation legal specialist Zohar Zic of HFW


Airlines may be creating LTAs ‘without knowing’


‘We’re all struggling,’ lawyers tell Abta Travel Law Seminar. Ian Taylor reports


Airlines are selling Linked Travel Arrangements (LTAs) in significant numbers, say lawyers advising carriers on compliance with the 2018 Package Travel Regulations, although the extent of LTA bookings has yet to become clear. LTAs are a new category of


booking, introduced last July, offering consumers only partial financial protection outside the Atol regime. Tere are two types, but the


most common involves an airline ‘click-through’, typically via an airline offering a customer who has booked


72 6 JUNE 2019


a flight a link to an accommodation or car-rental site. If the customer makes a booking with this second trader within 24 hours of the first, it creates an LTA, and the first trader – the airline – must protect the flight against insolvency and inform the passenger they have booked an LTA. Zohar Zik, partner in the aviation


department of law firm HFW, told a recent Abta Travel Law seminar in London: “It’s a new thing for airlines to need security against insolvency for the components they are responsible for.”


He acknowledged the LTA


regulatory burden “is much lower” than for packages but identified several “challenges” facing carriers, saying: “[Current] technology systems and data collection don’t really allow airlines to process LTA-type information.” Zik added: “Tere is an obligation


on the [second] trader to inform the original trader [of a booking] and most airlines don’t have that level of


Continued on page 70 travelweekly.co.uk


PICTURES: Shutterstock; Phil Gammon; Karla Gowlett


BUSINESS NEWS


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