NEWS TRAVEL WEEKLY BUSINESS CONTINUED FROM THE BACK


internal complaint-handling system to assist business users. Only the smallest platforms will be exempt from this obligation.” inificnt usiness associations “will be able to take platforms to court to stop non-compliance with the rules.” The new EU rules will apply


from next year and will be subject to review within a further 18 months. The regulation should come


into effect in the UK regardless of Brexit unless ministers explicitly rule it out, since the government has said existing EU law will be incorporated into UK law. Platforms will in any case be required to comply with EU rules. The EC noted: “The


intermediary role of these online platforms sometimes allows them to engage in unfair trading practices that can cause sinificnt econoic r to the businesses that use them. “The identity of the business


offering goods and services will be more visible. They will also be aware [when] general search results are infuence   pent. is will help consumers make more-informed choices.” An EC impact assessment


study suggested almost 50% of European businesses operating on platforms had experienced problems and that 38% of problems with contractual relations went unresolved, while 26% were solved “with ificuties. otirs  of SMEs surveyed said their position in search results “has a sinificnt ipct on ses. Elzbieta Bienkowska,


European commissioner for the internal market, said: “Our new rules are designed with SMEs in mind. Many of them do not have the bargaining muscle to enter into a dispute with a


big platform.” › New rules: see box (right)


Flybe agrees takeover but deal angers shareholders


Ian Taylor ian.taylor@travelweekly.co.uk


Flybe has agreed the sale of its airline to the Connect Airways consortium which includes Virgin Atlantic last week.


Virgin Atlantic, Southend Airport-owner Stobart Group and US hedge fund Cyrus Capital paid £2.8 million for the regional carrier, leaving Flybe Group as a shell company with no material assets. However, Flybe shareholders


have still to approve the sale of the group for £2.2 million, or just 1p per share, at a meeting on March 4. Flybe has already drawn


£15 million in working capital from the Connect Airways consortium, which is 30% owned by Virgin Atlantic, 30% by Stobart and 40% by Cyrus Capital. The regional airline “will be


rebranded to a Virgin Atlantic brand in due course” but will be run by Connect Airways which “will operate independently to Virgin Atlantic”. In a statement, Flybe described the deal with Connect Airways as


UP IN THE AIR: Flybe deal depends on shareholder approval next week


“the only viable option available which provides the security the business needs to continue to trade successfully”. Stobart Group’s Stobart Air,


which operates as a Flybe franchise crrier n ircrtesin fir Propius joined Connect Airways as part of the deal. Flybe rejected an alternative


proposal of £65 million from investors including US airline Mesa Airlines and a New York- based hedge fund last week amid attempts to disrupt the Connect Airways takeover by Flybe’s two largest investors.


WHAT WILL THE NEW EC RULES REQUIRE?


The new EC regulation on “platform intermediaries” covers online services to EU businesses, including search engines and “e-commerce marketplaces, app stores, social media (eg Facebook) and price comparison tools (eg Skyscanner)”. It will require intermediaries to:  Make “standard terms and conditions more transparent, easily available and announce changes well in advance”. They “must


70travelweekly.co.uk28 February 2019


include a description of supplementary goods and services online platform intermediaries propose to consumers; and the type of data that will be shared”.  Inform businesses “how they rank goods or services offered by themselves or by businesses they control compared to third-party businesses. Businesses should [also] be informed how online platforms can influence their ranking


position, for example, via payment of commissions.”  Provide “quick means to resolve disputes. All except the smallest platforms must set up an internal complaint handling system”.  “Not stop a business user from making its identity visible”. In addition, organisations


representing business users may “take action before national courts to stop or prohibit non-compliance”.


Andrew Tinkler, former Stobart


Group chief executive and Flybe’s second-largest shareholder, called Connect’s offer “an insult to the aviation industry”. Tinkler lost a High Court case against Stobart this month. Flybe Group’s biggest


shareholder, Hosking Partners, called the Connect Airways offer “cavalier”. It is seeking an investigation of the takeover process under a new Flybe chairman at the March 4 meeting. Flybe has warned it will be


wound up if the deal is not completed.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80