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RCN dates poised to be extended Ian Taylor


The CAA is poised to extend the deadline for issuing refund credit notes (RCNs) for Atol-protected holidays beyond the end of April after the government confirmed it will guarantee the Air Travel Trust fund to September 2022. The regulator is also likely to


push back the expiry date for newly issued RCNs from September 30 this year. Abta is likewise considering extending the issue of RCNs for non-flight packages, which it guarantees, beyond April 30. The association extended the


expiry date of new RCNs from September 30 to January 31, 2022, last month (Travel Weekly, April 1).


Government confirmation


of the Air Travel Trust (ATT) guarantee came in the Global Travel Taskforce report released on April 9 in which the government also promised a Covid-19 charter “setting out consumer rights” while restrictions remain. It pledged to give the CAA


stronger powers to tackle “airlines that breach consumer rights” to refunds, and a review of consumer protection that “will build on the Competition and Markets Authority [CMA] investigation on the practices of travel agents and airlines in issuing refunds during Covid-19”. The CMA has publicly warned several travel firms over delays in paying refunds. The report pledges the


Travel bosses issue cashflow warning as agencies reopen


Samantha Mayling


Reopening travel businesses could be “more scary than closing down” last year, bosses have warned. Leaders speaking on a Travel


Weekly webcast said costs such as salaries could be difficult as staff return before money is earned from departing holidaymakers. John Bevan, dnata B2B chief


executive for Europe, said: “The reopening is actually going to be more scary than closing down. Cashflow is going to be a massive issue.” Alistair Rowland, Blue Bay Travel chief executive and Abta chairman,


6 15 APRIL 2021


added: “Lots of the industry have run out of cash now. They’re living on government borrowing, managing their way by maximising furlough [and] business rates [relief]. “To reopen, you need your


people, but you also need productivity and some cash to be able to start paying bills.” Rowland expects a “super-late


lates” market this year, with bookings as little as a week before departure. “At least consumers are going to


have to pay the full value,” he said. But he added: “It’s actually going


to be technically harder than the close-down for many people.”


I like the proposal


to toughen the CAA’s powers and the Covid-19 charter for consumers


government will “build consumer confidence in booking travel by putting further measures in place to ensure their money is safe in case bookings are cancelled”. Reform of the CAA’s powers


“will be detailed in the strategic framework for aviation to be published later this year”. The government initially


guaranteed the ATT in July last year


to September 30 this year, with RCNs guaranteed at the same time. Alan Bowen, legal advisor to the


Association of Atol Companies, said: “I fear we may require RCNs for some time. The downside is the CAA sees RCNs as a huge liability.” However, he said: “I like the


proposal to toughen the CAA’s powers and the Covid-19 charter for consumers.” The charter is promised by May 17. A senior industry source told


Travel Weekly: “The CAA is looking at both the deadlines for [RCN] issue and expiry. That is good news. Abta will also look at the issuing deadline again. But the issue of RCNs does need to draw to a close sooner rather than later.”


Alistair Rowland


Travel Weekly’s


Gemma Antrobus


Lucy Huxley John


Bevan


Gemma Antrobus, Haslemere


Travel owner and Aito Agents chair, criticised the government’s lack of sector-specific support – noting Restart Grants for hospitality are as much as £18,000 while agencies only qualify for up to £6,000 per branch. “It baffles me how they can still


leave us out to dry,” she said, likening the situation for agents awaiting details of which countries may be on the government’s ‘green list’ to operating an “empty supermarket”.


Rowland predicted more failures if


firms can’t make money this summer. Bevan agreed, adding: “A lot of


companies are carrying vast amounts of credit notes and have lots of staff on furlough but no cash coming in. “Many are going to be in a difficult situation without fresh bookings.”


Watch this and other T


ravel Weekly webcasts at: go.travelweekly.co.uk/webcasts travelweekly.co.uk


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