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Apr 10, 2010
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Flight chaos costs TUI £5m a day

Europe's biggest holiday company TUI Travel said the flight disruption caused by the volcanic ash has cost the group about £20m over the first four days of disruption. It added that daily costs were running at £5m to £6m.

The company, which owns Thomson and First Choice, said that as of Sunday, it had about 100,000 customers who were stranded away from home. TUI said it was working with other tour operators to ensure that regulatory authorities and Governments permit flights to resume as soon as possible, and would start land and sea based operations today to begin to return stranded passengers.

Source
 
Just Sunshine Holidays - How do you find this company? Tell us your story good or bad?
 
Jet2holidays the holiday arm of Jet2.com has released it's first ever 'full scale' brochure. This is in addition to it's previous online brochure. The brochure features city breaks to European cities such as Paris, Budapest, Rome, Pisa, Amsterdam Barcelona and Cork. The broshure also features New York flying from both Leeds Bradford and Newcastle airports, along with the traditional holiday sun spots in Europe and Egypt from airports across the North of England.
 
Apparently Goldtrail have gone into administration leaving 1000's of passengers stranded in Turkey.
 
The company today admitted that summer sales had flopped. The company has launched a huge sale to try to off load thousands of unsold holidays.
 
Kiss Flights travel company ceases trading

Budget travel firm Kiss Flights has ceased trading, the Civil Aviation Authority has said.

The British-based company operated flights to Greece, Egypt, Turkey and the Canary Islands.

The CAA said tens of thousands of holidaymakers who had booked trips through the company would get home as normal.

And the "vast majority" of people who had booked future trips with the firm would receive refunds, it added.

Kiss has about 13,000 people currently overseas, and some 60,000 people have forward bookings with the company.

Flight Options, which has owned Kiss since January last year, ceased trading at 1700 BST on Tuesday.

Last month Goldtrail, which specialised in holidays to Greece and Turkey, collapsed, affecting as many as 50,000 travellers.

And last week Sun4U folded, leaving about 1,500 people stuck abroad, mostly in Spain.

'Picking up the pieces'

Flight Options has bought a string of travel firms since it was launched in 1995 as a small tour operator offering seats only on various routes across the Mediterranean.


* The Civil Aviation Authority (CAA) will be arranging flights to the UK for those Flight Options customers who are abroad
* Flights leaving the UK before 1800 BST on Wednesday 18 August will operate as planned
* Flight Options/Kiss Flights customers are financially protected under ATOL 4233
* They should not travel on booked holidays after 1800 BST on Wednesday 18 August but instead should claim a refund from the CAA
* ATOL-protected Flight Options customers currently abroad and experiencing difficulties should contact the CAA on 0044 161 444 5811
* Those with forward bookings requiring advice about refunds should go to the CAA website or call 0844 571 7262

A statement on its website read: "As of 1700hrs on 17 August the Flight Options group of companies have ceased trading.

"The Civil Aviation Authority have been informed and we are awaiting further advice on the situation."

A spokesman for the CAA said: "We are picking up the pieces. People abroad will be fine.

"We will make sure everyone will be able to come back from their holidays.

"We will also make arrangements so that all of the people who were Atol [Air Travel Organisers' Licensing] protected will received full refunds. That will be the vast majority."

Kiss Flights catered for many of the same routes as Goldtrail.

Travel analyst Bob Atkinson said: "Unfortunately for some, it may be the case that some unlucky holidaymakers will be affected all over again.

"At this stage it is unclear how many passengers will be protected by the Atol scheme and we are waiting for advice from the CAA.

"This is sadly yet another collapse in what could become a rash of company failures this autumn."

http://www.bbc.co.uk/news/business-10449594

Viking Airlines that operates a lot of the Kiss flights has announced it is to downsize by three aircraft as a direct result of the Kiss failure.
 
[textarea]UK High Court refers passengers seeking compensation to European Court of Justice


The UK High Court is refusing to hear any more cases from passengers seeking compensation from airlines for delayed flights, and has referred the issue of passenger rights back to the European Court of Justice.

The decision means that passengers affected by delays will no longer be able to use the UK courts to force airlines to provide compensation.

A UK Civil Aviation Authority spokeswoman says UK-based passengers seeking compensation for delays from non-UK carriers will still be able to pursue their claims through other European Union member states' legal systems, but until the ECJ reviews the legislation and issues a new ruling no further cases will be heard in the UK.

She adds that the ECJ's November 2009 ruling "still stands" and the CAA "will do everything we can to show our understanding of the regulation" in the hope that UK carriers will "continue to uphold" their compensation obligations until the ECJ issues a fresh decision.

The ECJ last November ruled that airline passengers were entitled to compensation if they were delayed by three hours or more.

EU passenger rights legislation has provoked outrage among airlines, particularly with regard to compensation claims from passengers stranded during April's volcanic ash cloud crisis, which the European Commission has not treated as an exceptional circumstance. Dutch carrier KLM is currently embroiled in a dispute with the EC over its refusal to fully compensate passengers affected by the ash cloud.

It is unclear when the ECJ will issue a new ruling in response to the UK High Court's latest move.[/textarea]

http://www.flightglobal.com/articles/20 ... stice.html

We were discussing the rights and wrongs of the compensation situation in another section of this message board recently.

It seems the High Court is sympathetic to the airlines' predicament.
 
The amount of tour companies going under is getting worrying. The price of holidays is going to rocket if this carries on.
 
It is a concern but I can remember when major tour companies* went under and the industry, although shaken at the time, eventually recovered.

In some ways it is healthy (though not to the employees and holidaymakers involved) because it gets rid of the weaker companies - all part of the way capitalism works anyway.

*Clarksons and its associated airline Court Line that went bust in 1974 was one of the main players that pioneered the concept of cheap and cheerful holidays to the sun. Prior to that relatively few 'ordinary' British people went abroad for their summer holidays.

* International Leisure Group was the second biggest British tour group when it ceased to trade in March 1991. Its main holiday company was Intasun and its airline Air Europe - both went to the wall with the parent company. We were in Majorca at the time the news broke but, fortunately for us, we had gone with Thomson and Britannia.
 
Ah yes I remember that well. I seem to member watching the BBC news and seeing numerous Air Europe aircraft lined up on the ramp at London Gatwick. Gatwick airport in particular must have been crippled by the collapse of the International Leisure Group.
 
[textarea]Thomson axe travel safety net for flight only travellers

Tens of thousands of passengers will have no legal protection this autumn against their airline going bust.

From November 1, Thomson, Britain's biggest holiday airline, is removing flight only travellers from the Atol compensation scheme for people stranded abroad... which is £32m in the red.

The move will affect only those booked with Thomson Airways on a seat-only basis. Its package tour travellers will still be protected. Holidaymakers on Atol-covered trips are guaranteed flights home if a travel firm go under.

Thomson lost £105m earlier this year because of airspace closures caused by the volcanic ash cloud.

The move has raised fears that other big operators will abolish Atol protection for flight-only passengers.

A Thomson spokesman said the move brought them into line with other flightonly firms.[/textarea]

http://www.mirror.co.uk/news/top-storie ... -22504871/

Something else to further confuse many bemused passengers and potential passengers.
 
It seems as though they are trying to persuade passengers to revert back to the traditional Inclusive Tour type holiday. At least booking a full package holiday comes with all the trimmings and financial protection when it's booked the old fashioned way.
 
You're probably right and there is a lot to be said for the full protection of an all-inclusive package.

Against that you are restricted to the dates and destinations the tour companies offer whereas a flight-only 'put together your own package' with the likes of the low-cost airlines provides much more flexibility.

I suppose it's down to what individuals feel most comfortable with.
 
It could potentially lose business for them!

All the ex-pats or people with holiday homes etc etc wanting to go flight only will look elsewhere!
 
Thomas Cook and Co-op Travel to merge store networks

Thomas Cook and the Co-operative Group are to merge their High Street travel businesses to create the largest such network in the UK.

The move will bring together 1,204 stores, but both Thomas Cook and Co-operative Travel will retain their separate branding.

They will create a new joint subsidiary company to be 70%-owned by Thomas Cook, with 30% held by the Co-operative.

Thomas Cook admitted the deal may mean "hundreds" of job cuts.

"There may be some [store] closures but they will be very minimal," Thomas Cook chief executive Manny Fontenla-Novoa told BBC Radio 5 Live.

"Of course there will be some consolidation, of course there is some overlap."

The two firms currently have a combined workforce of about 9,000 across their existing shops.

Thomas Cook's online operation is not included in the merger with Co-operative Travel.
Savings

The merger will see the Co-operative Travel shops start to sell Thomas Cook products, which the two firms said in a joint statement would "provide significant opportunity to drive additional sales".

While the two businesses will retain their separate branding, 70 outlets of Thomas Cook subsidiary Going Places will take up the Co-operative Travel brand.

Thomas Cook and Co-operative Group said they hoped the merger would create annual savings of more than £35m across the two firms.

The coming together of the two travel shop networks will also create the UK's second-largest foreign currency exchange business.

Mr Fontenla-Novoa added: "Today's announcement, together with our plans to cut costs and streamline the rest of our UK business, will put us in a much stronger position, should market conditions in the UK remain weak, and will build a firm foundation for the future."
http://www.bbc.co.uk/news/business-11499020

The latest example of consolidation in the UK travel industry.
 
It's a real shame that Co-operative Travel have decided to merge with Thomas Cook. The Co-operative brand has been going for years and people have learnt to respect and trust the brand. Not suggesting that Thomas Cook aren't reputable but the Co-operative brand has always been seen as independent so people feel they are getting impartial holiday advise. I think they will probably loose this reputation now.
 
Awards for Jet2

Jet2 and Jet2holidays were successful in the British Travel Awards 2010, both picking up Bronze Awards for Best Trade Booking Website (Flights) and Best Tour Operator to the Iberian Peninsula & Canary Islands respectively. Phil Ward, passenger sales director for Jet2, said,’We are delighted to be recognised in this way. We work closely with all of our trade partners and develop our technology with their valuable feedback. Thank you to those who voted for Jet2.’

Steve Heapy, managing director of Jet2holidays, said, ‘This award is a real achievement. People like the quality of the product and service and it is this feedback that manifested as votes from travel agents for this prestigious accolade.’

Source
 
TUI shops to sell Jet2holidays

TUI has signed a distribution deal with Jet2holidays that will see its First Choice and Thomson shops selling the budget airline's holiday product. The travel giant said Jet2holidays brochures would be ‘top tier’ racked in its outlets in the Midlands, north of England, Scotland and Northern Ireland.

There will also be an online push with TUI UK and the holiday arm of airline Jet2 working together to ‘position the brand on the key supplementary TUI UK websites’. The move represents a massive distribution coup for Jet2holidays as TUI UK has 862 shops in which to push the product.

Source
 
Re: Thomas Cook Consolidation

IT consolidation to help Thomas Cook cut £50 million costs

Thomas Cook aims to make annual savings of up to £50 million through a range of measures, including consolidating its IT infrastructure.

The travel agents said it expects to generate overhead savings of £40 million to £50 million in 2012 mainly through the upgrade of its IT infrastructure, renegotiation of supplier costs and reduction in buying requirements. It is also cutting more than 500 managerial and support roles.

Thomas Cook decided on these strategies after reviewing its UK operations due to the “challenges experienced in the UK this year” and an “uncertain outlook”.

According to its preliminary results for the year ended 30 September 2010, the company’s group profit was down six percent to £391 million compared with last year (£415 million), on revenues of £8.9 billion. Its revenue had also fallen by four percent, and Thomas Cook said its increases in profits from Central Europe and Airlines Germany were not enough to offset the UK decline. Its UK operations’ profit was 24 percent down on last year, to just £124 million, partly due to low demand in the summer.

Thomas Cook also revealed that its net expenditure on fixed assets and intangibles had increased, some of which was due to greater investment in its IT programme and its online travel agency proposition.

“We have taken further actions to simplify and streamline our UK business, which will result in significant cost savings on an annualised basis, helping to mitigate input cost pressures and any further deterioration in the trading environment.

“We are confident that the actions we have now taken to reinforce the UK business, together with continued progress on our strategic initiatives, leave us well positioned to make progress in the current year,” Thomas Cook said in a statement.

In September, the group agreed terms with Capgemini to move its IT to an Infrastructure as a Service (IaaS) model

Source
 
[textarea]Olympic pledges full 2011 programme despite Monarch deal collapse

Eastern Mediterranean specialist operator Olympic Holidays has said it will operate its full 2011 summer programme despite talks on a new deal with charter carrier Monarch Airways breaking down.

All references to flying with Monarch were taken off the Olympic website last week after what, Travel Weekly understands, were protracted negotiations.

However, Photis Lambrianides, commercial director at Olympic, claimed some Monarch flights were still bookable on its system, although he said talks were ongoing with other carriers.

It is understood winter flights are still bookable through Olympic but not for summer 2011.

Lambrianides refused to discuss commercial negotiations with suppliers but did say: “Olympic Holidays will be flying our full programme to Greece for 2011; our plans are there – they have not altered in any way.

“We cannot, as a matter of policy, discuss commercial issues with suppliers because they are sensitive.

“There have been discussions, but our full programme is there and we are starting very aggressive campaigns with the trade.”

In a statement Monarch said: “Monarch has taken a business decision, based upon the discussions and communications it has had with Olympic Holidays, and has concluded that it is very unlikely to reach an agreement for summer 2011 capacity on terms and within pre-notified timescales that meet Monarch’s business requirements.

“In these circumstances, the Monarch Group believes it is in its best interests, and in order to give Olympic a reasonable opportunity to secure its capacity requirements from other sources, to conclude now that the sensible course is to terminate discussions regarding summer 2011.

“Monarch remains open to the possibility of future business cooperation with Olympic for seasons after summer 2011 if mutually satisfactory terms can be agreed.”

The Monarch Group is understood to have absorbed all of Olympic’s 2011 Greece flying, estimated by industry sources at around 250,000 seats, into its own tour operator programmes.

Sources told Travel Weekly that buyers from the Monarch group were busy contracting rooms in Greece for next year as Cosmos Holidays looked to take up the additional capacity.

Lambrianides said Olympic Holidays was in discussions with other carriers including those operated by the big two, Jet2.com and overseas airlines such as Pegasus, which it uses for flying to Turkey.

It is also talking to Viking Airlines AB, the Sweden-based charter carrier that entered bankruptcy protection this month and which hopes to refinance before reviving a summer 2011 flying programme from the UK.

A number of failures this year, including those of Kiss Flights and Goldtrail Holidays, have prompted concerns over access to affordable flying for many UK independent operators.

At the Abta Travel Convention in Malta in October, Fabio Mantegazza, chairman of Monarch Holdings, the carrier’s parent, indicated the group was not prepared to match prices at the lower end of the market.

Speaking about the failure of firms selling budget seats, he said: “It’s a question of price. There was a reason those flights were cheap. We are not going to go in and play a game that’s not suited to our way of doing business.

“The people who sold that capacity were extremely resourceful and ingenious but there was inherent risk, and we cannot expose ourselves to those risks.”

Source[/textarea]
 

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