BUSINESS NEWS
Norwegian Air hopes new deal will raise £340m
Norwegian Air is seeking a second debt-for-equity swap to raise £340 million (NOK4 billion) as it seeks to restructure while in bankruptcy protection in Ireland. Ireland’s ‘examinership’ process
provides protection from creditors for up to 100 days. Norwegian also entered
bankruptcy protection in Norway this week. The carrier ceded ownership to its creditors in a debt-for equity swap in May leaving aircraft lessors owning 53% and bondholders 42%. Now it proposes to repeat the process and wants a deal to pay lessors ‘by the hour’.
The proposals are due to go
before an extraordinary general meeting on December 17. In a statement, Norwegian Air
said it would ask “for the continued support of its shareholders to prepare for future capital increases in parallel with the restructuring of its balance sheet”. The rescue plan was
characterised by one analyst as likely to “test creditors’ patience”.
Heathrow set to impose £5 drop- off charge to recoup huge losses
Heathrow plans to impose a £5 Forecourt Access Charge (FAC) for dropping off passengers from next year. The fee would apply to all
vehicles entering Heathrow’s terminal forecourts from late 2021 with the exception of blue badge holders and emergency vehicles. Heathrow announced plans for
the charge as a means “to prevent a car-led Covid-19 recovery” and pointed out passengers have the option of being dropped off at a long-stay car park and travelling using a free shuttle bus. But the airport is also looking to recoup £1.5 billion in losses this
year and said a review had led it to “recalibrate” spending on surface- access projects. It said revenue raised through
the charge would be used to offset airport costs, including sustainable transport investments, and lower charges for passengers. The proposals will be subject
to a consultation, with details to be finalised next year. Heathrow director of surface
access Tony Caccavone said: “The impacts of the Covid-19 pandemic have been severe, with Heathrow passenger numbers down over 80% and the business losing £5 million a day.”
QC suggests reforms for Airbnb Ian Taylor
Hospitality trade associations have called for reform of consumer protection to extend existing legal provisions to Airbnb following legal opinion that consumers “are at risk in using” the platform. Airbnb was poised for a multi-
billion dollar public listing this week, but a coalition of UK Hospitality, the Bed and Breakfast Association, the Professional Association of Self- Caterers (PASC) and the Tourism Alliance urged the government to act on reform proposals submitted by QC William Audland, a specialist in personal injury and package travel law. The associations sought
Audland’s legal opinion on Airbnb’s terms and conditions and he concluded: “Consumers are at risk in using Airbnb, which does not appear to check or ensure compliance with its stated requirement that properties
travelweekly.co.uk
advertised must confirm to any applicable laws [including health and safety laws and standards]. “A consumer who suffers personal
injury as a result of accommodation provided through Airbnb has no apparent recourse against Airbnb. Any civil claim against the host is fraught with difficulty. “Consumers are demonstrably
in a substantially riskier position in booking through Airbnb.” Audland, of 12 King’s Bench
Walk Chambers, argued: “This state of affairs needs to be remedied.” He suggests three reforms – mandatory registration of all short-term lets with local councils, mandatory third-party insurance for short-term lets sufficient to cover catastrophic injuries and fatalities, and primary legislation that renders Airbnb liable for the acts and omissions of hosts. UK Hospitality chief executive Kate Nicholls welcomed the legal
opinion, saying: “At a time when thousands of small businesses are struggling to survive and have made huge investments in extending guests’ safety to include Covid-19 secure protocols, it is wrong that giant platforms have been allowed to avoid all responsibility. “They are putting their guests
at risk. We call on the government to take note of this leading QC’s expert warning, to implement his suggestions for reform and give all consumers the protections currently enjoyed by those of hotels, B&Bs, lettings agencies and tour operators.” B&B Association chairman
David Weston said: “No commercial business should be allowed to opt out of responsibility for customer safety in the way that Airbnb and similar platforms have been able to.” Airbnb is expected to be valued
at almost $35 billion in its US stock- market listing.
Kate Nicholls, UK Hospitality
10 DECEMBER 2020 47
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