Continued from page 80
vaccinated, but notes: “The testing regime for passengers visiting the UK for under 48 hours is ineffectual.” On the cost of tests, it notes:
“The current policy retains a requirement for PCR tests for a portion of the market [who test positive] that will likely be a barrier for new companies to enter the market.” At the same time, “the UK
has retained the highest level of restrictions” for non-vaccinated travellers “comprising three tests and 10 days’ self-isolation” and these should be “reviewed regularly”. Bar UK points out: “The
government already recognises a negative test after five days is an acceptable risk under its ‘Test to Release’ option. Yet passengers are still required to take a day-eight test. This relic from earlier policy makes no sense.” It adds: “The review of
red list countries . . . meets industry proposals [but] red list restrictions should be further reviewed” and “countries classified as red should be able to access [the] full and transparent criteria”. The submission calls for
investment to “drastically improve passenger processing time” at the UK border and urges a “simplification” of the PLF, including the removal of “surplus data”. The failure of the devolved
administrations to coordinate with Westminster remains a problem, Bar UK notes, with announcements still uncoordinated and “clarity for carriers and passengers inadequate”. Information on the
gov.uk site also “remains cluttered and complex to navigate”.
On the Beach sues Ryanair for ‘breach of rules’
On the Beach is suing Ryanair in the High Court claiming the airline breached competition rules and abused a dominant market position by blocking its company credit cards and preventing customers from managing bookings online. Ryanair has repeatedly sought
to prevent OTAs booking flights without agreements, with group
chief executive Michael O’Leary describing OTAs as “scam artists”. On the Beach argues Ryanair
sought to “degrade the experience for On the Beach customers by making it less convenient and/or more expensive . . . to use Ryanair than for direct customers”. Ryanair declined to comment.
But in March, O’Leary called OTAs “a real pain in the arse, disrupting our communications with customers” while conceding they accounted for 20% of Ryanair’s pre-Covid-19 bookings. O’Leary said in March: “We’ve
had a huge problem with a small core
Michael O’Leary
of customers where we have fake contact details and fake credit card details. OTAs are overcharging our customers and giving us fake details. “We’re doing everything we can
to get customers to book direct.” i Get Social, page 29
CWT files for bankruptcy protection to restructure
Ian Taylor
One of the world’s leading corporate travel companies is poised to file for bankruptcy protection in the US in a mark of the depth of the crisis in the sector. CWT confirmed it would
enter a ‘pre-packaged’ Chapter 11 bankruptcy protection process to push through financial restructuring. However, the travel management company expects the process to be quick after reaching agreement with stakeholders “representing 100% of our bank group” and creditors holding “over 90% of secured debt”. The deal will see the company
shed almost $900 million of its $1.5 billion debt and the Carlson family which has controlled CWT since its creation in the 1990s cede majority ownership to its creditors. The deal provides for “all business
partners and providers of goods and services to CWT to be paid in full”, with the company’s financial
78 28 OCTOBER 2021
Michelle McKinney Frymire
The agreement with creditors
came after the company defaulted on the interest due on a $250 million bond in June. Chief executive Michelle
McKinney Frymire, who took over from Kurt Ekert on May 1, hailed the agreement as “a vote of confidence from an enormous portion of our investor base”. She said: “We’re pleased to be
stakeholders pledging “substantial long-term liquidity”. In a statement, CWT said: “We
plan to use a ‘pre-packaged’ court- supervised process to implement the agreement while we continue operating normally.” It is understood the formal filing will take place on or around November 7 in Texas. CWT said the deal “will
significantly strengthen our financial position, provide substantial liquidity and reduce our debt by approximately 50%”.
moving ahead with overwhelming support from our financial partners, underscoring their confidence in the market, CWT and our strategy and services.” But credit ratings agency Fitch
labelled the deal a “distressed debt exchange”. Frymire said: “Implementation
will enable us to move beyond the pandemic, accelerate investments and position CWT to benefit from the recovery under way.” The company has 15,000
employees. It forecasts a return to positive cashflow in 2024.
travelweekly.co.uk
PICTURES:
Studio306.com; Chris McAndrew/UK Parliament; Phil Goodson/Simply Photography
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