Business Travel Show 2019: Brexit dominates talk at London show. Ian Taylor reports


Business agents play down Brexit threat to sector


Corporate travel leaders and airlines have dismissed concerns that Brexit could hit demand for travel from the UK.


Steve Norris, Flight Centre


Travel Group corporate managing director for Europe and Africa, said: “We’ve had record trading months. February is strong [and] we saw our largest year-on-year growth in the UK in January. “We have 2,000 customers in


the UK. We anticipated a feeling of wait and see, but we have not seen any nervousness. Customers still need to do business.” Clive Wratten, chief executive


of travel management company Amber Road, agreed saying: “We’re not seeing any hesitancy. Business is steady. We’ve got past the point of ‘All aircraft are going to stop fin ter rc ’. one of our clients are saying ‘We’re not travelling because of Brexit’.”


‘Business is steady. No clients are saying ‘We’re not travelling because of Brexit’”


United Airlines UK and


Ireland managing director Bob Schumacher told Travel Weekly: “We are in an exceptionally strong revenue environment [and] bookings are strong. “Last year was a fantastic year


for the UK-US market. “It’s as good a time as I can think of in the US airline business.” He added: “I don’t think people


are concerned about North America. [But] if there is any talk of relocation [because of Brexit], we i f ere our custoers re. rret kinner ir Cn sales director for Europe, the


NORRIS: ‘We have not seen any nervousness [among customers]’


ie st n ric si “We’re seeing no impact on sales [from the UK].” Her colleague Stephen


Gerrard, UK and Ireland general sales manager, added: “Our forward-booking position is good. We anticipate no change in trading ter rc . Nadia Clinton, Delta Air Lines manager for the UK and Ireland, agreed. She said: “We’ve not seen any change in forward bookings. It is business as usual. “We very much appreciate the US and UK governments came to an agreement on open skies.”


Buyers and analysts split on Brexit impact


Corporate travel buyers and analysts appear divided on whether UK travel demand and costs are set to fall or rise due to Brexit. Travel buyer Rudiger Bruss, travel and mobility


category manager at automotive manufacturer Continental, warned: “Costs will go down because demand will plummet.” He told a Business Travel Show audience: “We


already see Honda and Nissan downsizing or closing i the   see ema roi siificat to the UK and within the UK, and costs falling.” But Florian Storp, head of the business travel


committee at German travel association the DRV, said: “The DRV is not that much concerned about the implications of Brexit. We don’t believe trips


will decrease. There will be the same number of trips to the UK from Europe.” Storp added: “We don’t see a slowing of


transactions between the UK and EU. We hear the EU and UK have agreed a lot.” Aviation analyst Tim Combs, managing director


of Aviation Economics, said: “I’m intensely worried about the impact of Brexit on the economy. If GDP falls, travel falls.” Yet he noted: “I’m surprised how relaxed airport managers have been about Brexit.” Combs reported: “The number of seats between the UK and EU [this summer] has gone up by about 1.5% and on intra-EU [routes] about 1.2%, so capacity is quite constrained. “That will potentially lead to higher prices.”


‘I can’t see how IAG can resolve ownership rules’


British Airways owner IAG faces ificuties copin it  ownership-and-control rules post-Brexit, a leading aviation analyst has warned. Aviation Economics managing


director Tim Combs said: “The airline group with most problems is IAG [and] I can’t see how they can resolve the issue.” The rules require European


airlines to be majority-owned and controlled by EU investors to enefit ro urope’s open skies. IAG maintains it will be able to comply but has yet to say how. The group owns Iberia, Vueling and Aer Lingus as well as BA. The EU has said airlines will have seven months to comply with the rules should Britain exit the EU without a deal. Combs said: “I don’t understand


how you can have an airline in the group that is UK-owned and controlled and an airline that is EU-owned and controlled. If I s runnin ir rnce or Lufthansa, I might challenge how IAG is complying with the rules.” IAG announced a ban on the


purchase of shares by non-EU investors last week.


BRUSS: ‘I see demand dropping significantly to and within the UK’


28 February 2019travelweekly.co.uk71


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