NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK


The paper acknowledges: “There will be more barriers to the UK’s access to the EU market [in services] than today.” It provides some detail on the implications for travel, saying: “The UK proposes reciprocal visa-free travel arrangements to enable UK and EU citizens to continue to travel freely. “The government wants UK and EU nationals to continue to be able to use the European Health Insurance Card.” But it also confirms: “Free


movement of people will end as the UK leaves the EU. Future immigration arrangements will set out how those from the EU and elsewhere can apply to come and work in the UK. [But] any future mobility arrangements will be consistent with the ending of free movement.” In the light of this, the


white paper proposes “a new framework” on borders that “respects the UK’s control of its borders” but “enables UK and EU citizens to continue to travel to each other’s countries”. It proposes “streamlined


border arrangements” along the lines of the Registered Traveller Scheme in place with the US and Japan, suggesting: “The UK wants reciprocal arrangements with the EU that ensure smooth passage for UK nationals when they travel to the EU.” The UK will explore “whether


to apply electronic travel authorities to each other’s nationals” – in line with EU plans for a digital pre-authorisation scheme for non-Schengen Area visitors from 2021. The white paper also


promises “to commit to maintain reciprocal high levels of consumer protection” and proposes “accommodating” the European Court of Justice “as interpreter of EU rules”. The government aims to conclude negotiations with the EU by the autumn.


Airline insolvency review backs keeping fleets in air


Ian Taylor ian.taylor@travelweekly.co.uk


The independent Airline Insolvency Review has concluded the “most effective option” for dealing with a bankrupt carrier is “to keep the fleet flying”.


The review, set up by the


government after Monarch Airlines’ failure in October, published its interim report last week. The report notes: “There is


no one-size-fits-all solution to repatriating passengers in the aftermath of an airline failure – the best approach will depend on the airline and circumstances of the failure.” But it suggests the “most


effective option is to keep the fleet of an insolvent airline flying”. “One area to be explored is


how to alter the CAA’s powers to give more options for dealing with emerging signs of financial distress in a UK-licensed airline [and] whether it is possible to adapt the existing licensing framework to provide a


Dispute between Lufthansa and Ryanair rages on


Ryanair chief legal officer Juliusz Komorek has accused Lufthansa of “abusing its dominant position” in Germany and Austria in an effort “to eliminate a competitor”, with the German group hitting back by accusing Ryanair of “false” allegations. The dispute, which appears destined for the courts, centres on Ryanair’s acquisition of Austrian airline Laudamotion, which emerged from the failure of


62 travelweekly.co.uk 19 July 2018 PROTECTION: Review confirmed a problem with existing arrangements


mechanism that could deliver an orderly wind-down.” Monarch went into administration and its fleet was grounded with 110,000 passengers abroad. The CAA oversaw the repatriation on leased aircraft at a cost of £60 million, flying people home regardless of whether bookings were Atol-protected. The response contrasted to that of the German government, which kept Air Berlin flying to the end of the summer season by providing


German-based partner Air Berlin last October. Ryanair welcomed EU


approval of its purchase of 75% of Laudamotion last week, while demanding regulatory action “to halt Lufthansa’s repeated abuses of its dominant position”. It accused Lufthansa of failing


to comply with an EU competition ruling to hand over 11 former Air Berlin aircraft to Laudamotion. Lufthansa acquired the bulk of the Air Berlin fleet following the failure. Lufthansa rejected the


allegations, saying it “has fully complied with all EU Commission obligations”. The German group said Laudamotion had declined to


LUFTHANSA: ‘Has fully complied with EU Commission obligations’


buy the aircraft, preferring to lease them, and “failed repeatedly to meet its contractually agreed lease payment obligations” – leading Lufthansa to “terminate the lease agreements”.


a bridging loan after the carrier filed for bankruptcy last year. Review chairman Peter Bucks


said: “Too many [air passengers] don’t have protection, too often requiring the taxpayer to step in. Ensuring all passengers get home requires organisation, funding and, in many cases, more than simply rebooking on other flights.” Abta chief executive Mark Tanzer


said: “The review has confirmed there is a problem with the existing protection arrangements.”


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