Ian Taylor
Abta assets rose £1.7m last year 35
Abta made a loss of £228,000 on its trade association activities in the 12 months to last June, but still recorded a surplus income of more than £2 million thanks to its insurance subsidiary, according to its latest accounts. The surplus, less a £394,000
loss on the Abta pension scheme, increased the association’s net assets by £1.7 million on 2022 to almost £29 million. Abta reported a restated group
surplus of £296,000 for 2022, up from the £211,000 previously reported, following a loss of £15.3 million in 2021 due to the pandemic. The association is committed to breaking even on its trade activities
by the end of June. However, the accounts reveal a continued decline in Abta membership numbers and, for the first time in several years, a fall in managed branch numbers. The accounts note 57 members
left in the 12 months to last June, with 22 new members joining, taking the year-end membership to 831 – down from 866 in 2022. The number of managed branches fell from 450 to 416. Abta notes in the accounts: “This
reduction reflects the ongoing impact on post-pandemic recovery, with several members ceasing to trade or failing financially, and continuing consolidation within the industry.” Yet the accounts also note
“just six failures in 2021-22” following 27 in 2020-21 and
‘Lack of time’ in Parliament holds up travel reforms
Ian Taylor
Important regulatory reforms affecting travel are being held up by the “very limited capacity” in Parliament ahead of a general election, a Department for Transport (DfT) official has confirmed. Speaking at an Abta Aviation
Forum in London on Monday, DfT deputy director for aviation Michael Stark acknowledged the industry is awaiting proposals on reform of Atol, the Package Travel Regulations and air passenger rights, but identified the Parliamentary
4 25 APRIL 2024
timetable as “a challenge”, saying: “Capacity is very limited.” He said: “I can’t offer any
indication on timeframes because of where we are in the political cycle. [And] I can’t speculate on the timing of the general election, [but] it will play a fundamental role in the future government’s policy agenda.” However, Stark also blamed an
industry “lack of consensus” for the lack of progress on reform. He noted the DfT had consulted
on proposals to grant the CAA new enforcement powers, reform delay compensation and introduce new rules on accessibility as well
The accounts note a core risk
Net loss in Abta members in the 12 months to June 2023, taking membership last summer to 831
report “only two failures” during the 12 months to last June. Membership numbers have fallen
consistently over recent years – from 1,142 in 2018 to 1,106 in 2019, 1,055 in 2020 and 928 in 2021. Head office members (831) and
managed branches (416) combined still give a total of 1,247, although this is down from 1,316 a year earlier.
that “Abta services are not seen as value for money by members” but report: “Abta’s review of services confirmed demand for the current service offering.” They also note the association’s
goal of a break-even operating result by this June “will be achieved through growing non-subscription revenues and maintaining strict cost control”. Member subscriptions raised
£6.3 million in the year, £204,000 up on 2022, while the annual Travel Convention and other events brought in £896,000, up from £329,000. Abta’s annual wage bill rose by £291,000 to £5.3 million despite a reduction in headcount from 97 to 94.
The Airline Insolvency Review was set up after the failure of Monarch in 2017 and reported in 2019
as reform Regulation 261 on air passenger rights and insisted: “We’re committed to taking legislation forward as soon as Parliamentary time allows.” But he argued: “There seems a
consensus that Regulation 261 needs to be reformed but that is where the consensus ends. It’s hard to see the landing space for this, and if we can’t see the landing space the alternative is the status quo.” More generally, he said: “We need compromise. The alternative is to get nothing you want.” Stark acknowledged: “Atol reform
has been under way for some time [and] there is a perception it’s not
progressing and not a priority.” But he insisted: “That is not the case. This work is complex. It’s vital we take the time to ensure the policy is right. It remains a priority and we’ll work as quickly as we can.” He added: “Atol reform was
one part of the Airline Insolvency Review [and] we continue to consider how to progress on Atol reform and other issues in the Airline Insolvency Review.” However, he refused to be drawn
on whether a further consultation on Atol reform would be published
before the general election. i Business, back page
travelweekly.co.uk
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