wals and refund liabilities. Ian Taylor reports


Watch the Future of Travel regulation session: go.travelweekly.co.uk/SpringForum1


‘We’ll engage with firms over Atol/bond renewals’


Abta and the CAA insist they will “engage” with businesses to help them through the Atol and bond- renewal processes this month. CAA group director of consumers


and markets Paul Smith said: “We understand people remain in a very challenging place.” Speaking at the Future of Travel


Spring Forum, Smith said: “We’ve tried to work with companies to understand their circumstances. Companies will continue to see a CAA that looks to engage with them. “Sometimes the discussions will


be tough, but we’ll look to engage effectively to try to help. I don’t think we underestimate the challenges for the sector and for businesses. We’ll look to factor that into our decisions while still protecting consumers and protecting the Air Travel Trust.” Abta director of financial services


John de Vial described the March bond renewals as “similarly difficult” to September’s, saying: “We have two main levers going in different directions. On the one hand, participants in our March renewals have been through six months’ more crisis. On the other hand,


‘Refund liability for FCDO advice awaits judgment’


Clarity on whether Foreign Office advice against travel to a destination legally requires a full refund of a package holiday must await a court ruling. That is according to industry


travelweekly.co.uk


the sentiment we’re seeing from investors, shareholders, private equity and the providers of bonds and insurance is at long last improving. “We’ve been through a much


longer tunnel than any of us imagined, but the light at the end is getting brighter thanks to vaccination. There is growing confidence about the recovery curve for the industry and that is important to people talking to investors about refinancing.” De Vial insisted: “We’re being


as flexible as we can in putting aside the normal criteria and focusing on what ultimately matters to consumer confidence, which is that there is the


Farina Azam


appropriate bond security in place to deal with the consequences of a failure if that happens. And that sits behind the refund credit note regime as well as payments generally.” He said: “It’s very tough. We’re


having difficult conversations in some cases. But I wouldn’t say it’s substantially worse than September. It’s different. We’re nearer the end of the tunnel, but people have had more pain for longer.” De Vial added: “The CAA and


Abta are going to have to think about the recovery timeline. It’s clearly not going to be a one-year cycle to getting back to a more normal balance sheet.”


lawyer Farina Azam, partner at Deloitte Legal, who described FCDO advice as “an area of uncertainty”. Speaking at the Future of Travel


Spring Forum, Azam said: “Does a change in advice to a destination automatically entitle the consumer to a refund? There are differing opinions, but it remains a grey area. “We’re not going to have clarity


until customer claims start going through the courts and a court interprets the legislation.”


BUSINESS NEWS


Azam warns sector to expect stop-start revival


Businesses should be prepared for a stop-start resumption of travel and changes to the status of destinations, a leading industry lawyer has warned. Farina Azam, partner at


Deloitte Legal, said: “We have to be prepared for a similar set of issues this time around to those we had last year because that is the nature of the pandemic.” Speaking at Travel Weekly’s


Future of Travel Spring Forum, Azam said: “There is going to be a level of uncertainty. “Destinations’ infection rates


will fluctuate like our own. “The lessons we learnt


last year, when we had travel corridors and destinations were taken off at the last minute, will be needed this year.” Abta director of membership


and financial services John de Vial told the webcast: “What we need is greater stability. “Half of the problem was


the chopping and changing and stopping and starting. “With the vaccination


programmes and everything that has been learnt, one would hope we get to a more stable position.”


Abta requires members to refund


package holiday customers where the FCDO advises against travel. But Abta director John de Vial agreed: “There is some uncertainty.” He noted: “[Some] companies


are selling on the basis that they have a transparent position. With new bookings, they won’t offer cancellation with a full refund. “Ultimately, how the courts


rule on that if it’s a package-travel arrangement is untested.”


18 MARCH 2021 39


PICTURE: Shutterstock


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