Continued from page 56
Weiss insisted: “Investors
want certainty and there isn’t any. I’m not optimistic about the emergence of the SAF industry in the UK. We expect 70% of SAF production to be in the US, 20% in the EU and 10% in the UK and elsewhere. Investors follow the money. “The UK is doing the
worst [on SAF] relative to its potential. Some of the world’s biggest airlines are here and we need price support. If we can’t change the mind of the Treasury, we’ll import the fuel. We need a 100% scale-up just to get to 10% [SAF]. We need one million barrels of SAF a year.” He added: “We calculate it
will cost two to four times the price of jet fuel.” Corneel Koster, Virgin
Atlantic chief customer and operating officer, admitted he “was sceptical” when the competition was announced, saying: “Getting something like this certified is hard. We have to demonstrate it’s as safe as a normal flight. I’m confident but there is a still a lot to do.” However, the Aviation
Environment Federation (AEF) said the fuel used for the flight “will not result in any additional reduction in atmospheric CO2” and “would reduce tailpipe emissions by 0%”, arguing: “SAFs produce the same volume of emissions as kerosene when combusted. Any CO2 savings will be ‘net’ savings during the production phase.” The AEF also suggested
that extending SAF use to 100% “isn’t the issue holding back SAF” and warned: “Waste-based fuels can’t be scaled up sustainably.”
Abta calls for probe into LTA bookings by airlines
Ian Taylor
Abta director of legal affairs Simon Bunce has called for research by the Department for Business and Trade into whether airlines are selling holidays as Linked Travel Arrangements (LTAs). Bunce told Travel Weekly:
“Everyone is saying ‘No one is doing any LTAs’ but people are doing them. In particular, airlines are. It is something the Department for Business and Trade [DBT] should look at. “It should research to see if people
are doing them properly. If airlines are taking money for seats [as part of LTAs], that money should be protected. How widespread is the sales process? The research would inform where we go next.” The DBT is eight weeks into a
12-week Call for Evidence on proposals for reform of the 2018 Package Travel Regulations (PTRs) which introduced LTAs as a category of booking.
else the industry would like improved. This is the first chance we’ve had to say something in relation to 14-day refunds, which were an issue during Covid. Are there other things to address?” He argued: “The 2018 regulations
Simon Bunce
Bunce urged Abta members to
help draw up a response by attending the workshops on PTRs reform it is hosting with department officials in Edinburgh next Tuesday, Birmingham on November 29 and Manchester on December 5. Abta is also seeking feedback through a member survey. The Call for Evidence proposes
removing domestic packages and lower-priced holidays from the PTRs. Bunce said: “It’s a great
opportunity not just to focus on what the DBT has come up with, but what
shifted the balance of risk from the customer to businesses. For example, under the old regulations, when a trip was cut short, we had to give a proportion of holiday costs back but customers didn’t get it all.” Second, he suggested, the Supreme
Court ruling in the case of X v Kuoni in 2021 “shifted the risk of unforeseen events entirely on to the tour operator. It disrupted everybody’s understanding of [operators’] liability. Can we use the opportunity to shift the balance back to where risk was more evenly shared?” The issues were due for discussion
at Abta’s Travel Regulations Conference in London this week. Abta members can register for the
workshops at:
abta.com/events/abta- package-travel-regulations-roadshow
Government to tighten rules on web ‘drip pricing’
The government confirmed plans to add regulations on so-called ‘drip pricing’ by airlines and travel firms to legislation currently going through Parliament in the King’s Speech last week. King Charles made only a passing
reference to “new competition rules for digital markets” in his speech at the formal opening of Parliament.
54 16 NOVEMBER 2023
But accompanying documents confirm “new powers” will be added to the Digital Markets, Competition and Consumers Bill to tackle “drip pricing where firms only advertise part of a product’s price upfront and reveal other charges later in the buying process”. However, this will be subject to consultation. The Digital Markets,
Competition and Consumers Bill is at the report stage in Parliament ahead of a third and final reading. It will introduce new powers
for the Competition and Markets Authority to take action against businesses and impose fines
Price ‘unbundling’ is under scrutiny
for breaches of consumer law without going to court. An Airlines UK spokesperson
disputed the need for action on drip pricing, saying: “Unbundling products and offering greater choice are important ways airlines compete.”
travelweekly.co.uk
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