Continued from page 40


on a ‘test to release’ programme to launch once we’re out of lockdown.” He confirmed: “This will


consist of a single test for arrivals into the UK, provided by the private sector and at the cost to the passenger, allowing a much-reduced period of self-isolation. Beyond the lockdown, this should encourage many more people to book flights with confidence. “Once we emerge from


lockdown, we can roll out the systems to help people travel again.” Shapps told the Airport


Operators Association: “We’ve been working extensively on the practicalities of the new regime. We will report to the prime minister very soon, as promised, with recommendations. “In addition, we’re also


working with partner countries to consider self-isolation and testing options before departure. I know it’s hard to understand the different testing regimes around the world. So we are leading international work to develop an international standard.” He described the trial in


Liverpool of lateral flow tests as “a highly accurate swab test that gives results in less than an hour [that] could open the way for non-quarantined air travel”. Shapps also insisted flights


would not be further disrupted by a no-deal Brexit. He said “significant


differences do remain” between the UK and EU, but told the conference: “We’re committed to ensuring flights can operate regardless of whether there is agreement. Thanks to existing international agreements, this will happen.”


Collaboration will hasten industry’s revival – Guevara


Government support, reopened borders and coordination will be key to travel’s recovery, say global industry leaders. But the heads of the World


Travel & Tourism Council (WTTC) and Pacific Asia Travel Association (Pata) warned travel will become more complex and the sector more competitive.


38 12 NOVEMBER 2020 Addressing the online Evora


Forum – A World for Travel, WTTC president and chief executive Gloria Guevara said: “Every country has reacted in a different way. We are going to be able to recover faster where governments protected the ecosystem – in France, in Portugal.” She insisted: “The sector is


resilient. After every crisis, the sector recovered. The question is how fast. Collaboration will see us move faster.” Pata chief executive Mario


Hardy said: “The situation keeps evolving at a phenomenal rate. “The good news is there is


immense desire to travel. [But]


STA’s cash ‘was tied up in bonds’ when it collapsed


Ian Taylor


STA Travel went into administration in August “with a lot of cash” tied up as collateral for bonds and “tens of millions tied up with Iata”. The experience led former STA


Travel finance director Anthony Mercer to believe travel firms should switch to trust arrangements. Mercer told a Barclays travel


industry ‘state of the nation’ webcast: “Think how to reset your business on a trust account basis and manage the business to potentially go into administration.”


STA Travel had 49 stores in the UK


He said: “STA Travel was sitting


on cash when the company failed, but it was tied up providing collateral. We had tens of millions tied up with Iata.” STA Travel was privately owned by


a Swiss family which put the holding firm into administration on August 20. Mercer explained: “We had


a bond facility and had that collateralised. It tied up cash. We had agreements with airlines which allowed us to defer payments to the airlines in return for bonding. That put us in a weaker capital position.” The business suffered from


exposure to the Australian bush fires


at the end of 2019. Mercer said: “We had a lot of people due to travel who had to defer trips. On the back of the fires we were already in crisis mode.” At the start of the pandemic, he


said: “Our focus was on servicing customers. We didn’t focus on capital. Only at the end of March did we shift to offering refund credit notes.” The company’s finances were


further hit in April by an Australian fine of $14 million (£7.8 million) for misleading advertising and by its inability to access a UK government Coronavirus Business Interruption (CBILS) loan because it had reported losses in the previous two years. Mercer said: “There was pressure


from deferred payments. We didn’t qualify for UK government support. We began speaking to investors to ensure we could continue trading. We were optimistic and had a preferred bidder submit a final bid in August. “Then we received notice the


holding company had been placed in administration in Switzerland. We had to go into administration.”


Gloria Guevara


before Covid-19 it was easy to jump on a plane and go anywhere in the world. Will all these routes still be available? Travel will come back, but it will take longer than we hope. Travel will become more complex.”


travelweekly.co.uk


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