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    Mordashov steps down from Tui Group role

    Alexey Mordashov has resigned his position on the supervisory board of Tui Group after being sanctioned by the European Union.
    By some estimates the second richest man in the country, he has been hit by restrictions along with dozens of other wealthy Russians.
    Sanctions can include an asset freeze on funds and assets held in the European Union, as well as travel bans on individuals.
    Mordashov made his fortune off a majority stake in Russian steel company, Severstal.
    The action was taken following the Russian invasion of Ukraine last week. ADVERTISEMENTThe aim of the EU sanctions is to prevent Mordashov from disposing of his shares in Tui Group.
    This is to prevent him “from realising any proceeds or profits from his investment in Tui,” a statement from the company said.
    As a result of the war in Ukraine triggered by Russia, the European Union issued new sanctions on February 28th, which additionally include further representatives of the Russian economy.
    Mordashov has been a shareholder in Tui Group for around 15 years and currently holds around one third of the share capital in the company.
    “The European Union sanctions relate to Mordashov as a person, not to Tui Group, in which he is a shareholder,” a statement added.
    “In this respect, these sanctions against the shareholder have no impact on the company in which he holds shares.”
    Fritz Joussen, chief executive of Tui Group, had earlier sought to minimise the relationship between Tui Group and its largest shareholder.
    Earlier this week he said: “We assume that any restrictions or sanctions against Mordashov will not have any lasting negative consequences for us as a company.”

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    Tui Group plays down Mordashov connection

    Alexey Mordashov, the largest shareholder in Tui Group, has been sanctioned by the European Union.
    By some estimates the second richest man in the country, he has been hit by restrictions along with dozens of other wealthy Russians.
    Sanctions can include an asset freeze on funds and assets held in the European Union, as well as travel bans on individuals.
    Mordashov made his fortune off a majority stake in Russian steel company, Severstal.
    The European Union and United States have led sanctions against wealthy Russians and the Russian state as the country launches an invasion of neighbouring Ukraine.
    Fritz Joussen, chief executive of Tui Group, sought to play down the connection.
    “Some of you have also asked me about our largest single shareholder Alexey Mordashov and our position with him.
    “Mordashov has been a TUI shareholder for around 15 years and has held about a third of our company since he propped it up during the Covid-19 crisis,” he said.
    “Two thirds of our shareholders are from Germany, the EU, the UK, the US or are funds.
    “Mordashov is also one of 20 representatives on the supervisory board elected by shareholders at the annual general meeting. ADVERTISEMENT“However, our company is run by the executive board, like any German public limited company, and not by the shareholders or the supervisory board.
    “We therefore assume that any restrictions or sanctions against Mordashov will not have any lasting negative consequences for us as a company.”
    Joussen added Tui itself was no longer represented with companies in Russia and Ukraine.
    He continued: “As you know, we sold our shareholdings in the tour operators in Russia and Ukraine some time ago.
    “However, in order to ensure the safety of our customers, we will make or have already made adjustments in some areas, such as flight routes and cruise destinations.
    “We are in contact with the employees of service providers in Ukraine who work for us and are supporting them as best we can to keep themselves and their families safe.
    “TUI Cruises is also intensively looking after crew members from Ukraine who are employed on board our fleet of ships.”
    In a statement released through the Tass news agency in Russia, Mordashov said he was shocked by the decision.
    “I have never been close to politics and have always focused on building economic value at the companies I have worked for both in Russia and abroad, creating jobs and supporting local communities.
    “I have absolutely nothing to do with the emergence of the current geopolitical tension and I do not understand why the EU has imposed sanctions on me,” the businessman said.
    “For a very long time, I have been engaged in the development of economic, cultural and humanitarian cooperation with many European countries and I fail to understand how these sanctions against me will contribute to the settlement of the dreadful conflict in Ukraine.”

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    Airbus seeks Qatar Airways damages as High Court dispute escalates

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    Airbus seeks Qatar Airways damages as High Court dispute escalates

    Airbus has asked the High Court in London to award it $220 million in damages over two undelivered A350 planes for Qatar Airways.
    The move is the latest step in a long-running and increasingly bitter dispute between the two.
    The court claim for damages came after Qatar Airways sued the manufacturer for $600 million over the erosion to the surface of more than 20 previously delivered A350 jets.
    Airbus said it was also seeking to recover millions of pounds in credits awarded to the airline.
    For its part, Qatar Airways welcomed a decision by the High Court to issue an injunction against Airbus.
    The essence of the order, the carrier said, is that the manufacturer must not do anything between now and a further hearing in April that would “adversely affect its ability to comply with any court order that Qatar Airways might obtain in relation to the purported cancellation of the A321 contract”.
    As the order obtained is an injunction, there would be “serious consequences” for Airbus should this order be breached, the carrier said.
    The decision is the latest in an increasingly ugly dispute between the two parties.
    In January, Airbus cancelled a contract for 50 new A321neo planes with Qatar Airways. ADVERTISEMENTThat followed a decision in December by the Middle East carrier to issue legal proceedings against Airbus in a dispute over the grounding of its fleet of A350 planes.
    The airline took 21 aircraft out of operation last year, arguing paint on the fuselage was “degrading at an accelerated rate” and creating a safety concern.
    Airbus countered, blaming the airline for an “ongoing mischaracterisation of non-structural surface degradation”.
    The manufacturer said the surface paint-related findings have been thoroughly assessed by its own team and confirmed by the European Aviation Safety Agency as having “no airworthiness impact” on the A350.
    The dispute is ongoing, with a hearing due in April.
    In an earnings call Airbus chief executive, Guillaume Faury, said the company was seeking a mutually acceptable resolution.
    “We have to take steps to protect ourselves and protect the company and that is basically what we are doing, but obviously we continue to try to resolve the situation in a more amicable way,” he explained.
    Qatar Airways said it also noted the remarks “with surprise”.
    The carrier said its legal team was unaware of any efforts by Airbus to try to resolve the situation.
    In a further development, Qatar Airways said the Qatar Civil Aviation Authority (QCAA) has now revoked the airworthiness review certificate of an additional A350 aircraft.
    This means a total of twenty-two Airbus A350 aircraft now grounded.

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    Competition & Markets Authority wins Teletext case

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    Competition & Markets Authority wins Teletext case

    The High Court has confirmed Truly Travel and Alpha Holidays, which traded as Teletext Holidays and Alpharooms respectively, failed to appropriately refund customers.
    In a case brought by the Competition & Markets Authority (CMA), the companies were found to have breached Package Travel and Linked Travel Arrangements Regulations (PTRs).
    These required them to refund customers for package holidays that were cancelled due to the Covid-19 pandemic within 14-days.
    The CMA sought a declaration from the High Court in this case to highlight the importance of travel firms respecting consumers’ refund rights.
    The body said it wants to ensure that “people can book package holidays with confidence, knowing that their legal rights will be respected if their holiday is cancelled due to unavoidable circumstances outside their control”.ADVERTISEMENTThis court action follows a significant programme of consumer protection law enforcement work by the CMA in the package travel sector, which has secured hundreds of millions of pounds in refunds for people whose holidays were cancelled due to the Covid-19 pandemic.
    Because Truly Travel and Alpha Holidays have been placed into liquidation, Teletext Holidays or Alpharooms package travel customers with outstanding refunds are encouraged to submit a claim to the Travel Trust Association (TTA), which is now responsible for these.
    Andrea Coscelli, chief executive of the CMA, said: “This should be a wake-up call to any business that thinks that it doesn’t need to honour customers’ refund rights.
    “Today’s ruling confirms the CMA’s view that Teletext Holidays and Alpharooms broke the law by not providing the refunds customers were due within 14 days for cancelled package holidays.
    “While this ruling comes after these firms have been placed in liquidation, we hope the decision will make it easier for people to get their money back for a cancelled holiday in the future.
    “Customers of Teletext Holidays and Alpharooms with outstanding refunds should get in touch with the Travel Trust Association.”
    The CMA launched court action against Truly Holdings, and its subsidiaries Truly Travel and Alpha Holidays, last year, over outstanding refunds owed to customers.
    Truly Holdings had previously signed formal commitments, known as undertakings, requiring them to use all reasonable endeavours to pay outstanding refunds to passengers in an agreed schedule, and to ensure that all refunds due for cancelled package holidays going forward were paid within 14-days.
    When the CMA found that Truly Holdings was not fully abiding by these undertakings, the CMA took the company to court.
    The court claim for refunds was stayed – paused indefinitely – after the firms entered liquidation, but the CMA continued to seek a declaration from the court that these companies broke the law.
    This has resulted in the ruling made today.
    Rory Boland, editor of Which? Travel, said: “Teletext Holidays attempted to shirk its legal responsibilities to refund customers within 14-days for cancelled trips, leaving its exasperated customers out of pocket for years.
    “Holidaymakers have been badly let down, but this important court ruling means they should finally be able to claim the money back they are owed.
    “Teletext is not the only holiday company to break the law over refunds in recent years.
    “The government must ensure there are better protections for holidaymakers’ money by giving regulators stronger powers to take action against companies that break consumer law – including the ability to impose fines if necessary.”

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    Which? warns over new scams as travel returns

    Fraudsters are setting up bogus companies to sell imaginary flights and offering fake refunds to extract bank details and steal money as international travel reopens, Which? has warned.
    The pandemic has provided new opportunities for fraudsters to exploit victims.
    Covid-19-related scams spawned from rapidly-evolving travel rules; coupled with widespread desperation for holidays after months of lockdown, this has created the perfect conditions for cybercrime.
    Even Brexit legislation has been leapt on by some unscrupulous traders as a chance to rip people off.
    One of the cruellest scams has made victims out of people awaiting refunds for cancelled holidays.
    Scammers are cold-calling travellers and impersonating airlines, travel agents and banks, claiming they need their bank details and personal information to process the refund.
    But instead of doing so, they use this information to steal money from the customer, leaving them doubly out of pocket.
    Which? has learnt of instances of fraudsters taking detailed steps to appear to be the business they are imitating, such as spoofing legitimate phone numbers and finding out booking details and exactly how much someone is owed.
    A renewed appetite for holidays early in 2022 has left some families and individuals feeling under increasing pressure to secure their perfect getaway.
    Rogue travel companies are selling fake flights and others are promoting some of the most popular stays with scam adverts on social media, offering apparent late or peak-season availability for holidays that appear to be sold out elsewhere, Which? research found. ADVERTISEMENTCustomers are enticed to click through to a website where they book and pay for a holiday that doesn’t exist.
    Some unfortunate customers do not realise they have been defrauded until they turn up at the airport or at their accommodation and find they are unable to check in.
    The National Health Service has also been imitated by criminals.
    The NHS App gives proof of vaccination which can be used to gain entry to some of the most popular holiday destinations.
    An email, containing a link to a website that looks like an official NHS platform, invites people to apply for a digital vaccine passport.
    The email is in fact a phishing scam to steal personal information.
    As fraudsters move swiftly to exploit new opportunities, Which? is calling on online platforms, banks and telecoms companies to do more to ensure their systems aren’t being exploited to target victims.
    Added essential travel paperwork which emerged from Covid-19 and Brexit has also been used by unscrupulous companies to con people out of their money.
    Which? has seen firms charging travellers as much as $99 (£75) for passenger locator forms, which can be obtained from the government for free.
    When Which? carried out searches in November, 19 non-governmental results were returned on the first two pages of Google alone – all charging a fee.
    Some appeared as an ad or ranked higher than the gov.uk site.
    Similarly, some companies are charging fees for the GHIC (Global Health Insurance Card), which is free and was introduced to replace the EHIC after Brexit.
    Which? has also found opportunists selling international driving permits for Spain for $49 (£36.25) – despite the permits costing just £5.50 from the Post Office.
    Rory Boland, editor of Which? Travel, said: “Criminals are exploiting the pandemic and the demand for holidays in a wide range of ways, laying new traps to trick unsuspecting travellers out of their money.
    “Our advice for consumers is be wary of unsolicited calls and messages, and be cautious about holiday deals from unfamiliar firms.
    “If you think you’ve been the victim of a scam, you should report this to Action Fraud and your bank.
    “Anyone who is struggling to get their money back from their bank should contact the Financial Ombudsman Service to review their case.”

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    On the Beach sees beginning of travel recovery

    After 18 months of Covid-19 affected trading, On the Beach this morning said it was seeing “green shoots of recovery”.
    Releasing a trading update ahead of its annual general meeting on Monday, the company said daily booked group sales exceeded 2019 levels on January 13th.
    Group sales since the start of the financial year, including the period affected by Omicron, are down by just two per cent when compared to 2019.
    Sales are also up by 389 per cent on 2021 – though On the Beach took large parts of its offering off sale last summer.
    Simon Cooper, chief executive of On the Beach Group, commented: “After what has been a very difficult time for the travel industry, it has been incredibly pleasing to see consumer confidence and demand return in line with the loosening of travel restrictions in the UK and our destinations. ADVERTISEMENT“The group’s proactive actions taken throughout the pandemic have led to increased group sales in the higher value four- and five-star hotels, particularly for holidays to the Eastern Mediterranean.
    “Our sales patterns continue to evolve to our core destinations and while we are seeing shorter lead times for these holidays, we are hopeful that the increasing consumer confidence will result in a strong lates market in those regions.”
    The cash position on February 23rd was £19 million, which reflects significant investment in funding low deposit schemes and offline marketing.
    This figure excludes £61 million of customer prepayments held in Trust.
    The group also has an undrawn £75 million credit facility.
    Cooper added: “While we are mindful of the ongoing inflationary pressures impacting our core consumer base, we look to the future with renewed confidence and believe On the Beach is favourably positioned to continue to gain market share as demand for beach holidays further normalises.”

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    UNWTO joins WTO to call for end to travel bans

    The United Nations World Tourism Organisation (UNWTO) and the World Health Organisation (WHO) have called for the lifting of travel bans as they do not provide added value and continue to contribute to economic and social stress.
    The two UN agencies agreed to collaborate on a global trust architecture for recovery of the travel sector.
    Over recent days, a growing number of countries around the world have started easing their rules for international arrivals, including the easing of travel bans.
    These decisions are in line with WHO’s latest recommendations for safe international mobility, which highlight the ineffectiveness of blanket restrictions in controlling virus transmissions.
    Such a trend is also consistent with UNWTO’s repeated warnings of the great social, economic and development harm of restrictions.ADVERTISEMENTIn Geneva, the leaders of UNWTO and WHO agreed on the importance of easing or lifting travel bans.
    Blanket restrictions should be replaced with risk -based, evidence- informed, context-specific policies.
    “Guided by UNWTO, global tourism has followed WHO advice from the very start of this crisis,” said UNWTO secretary general, Zurab Pololikashvili.
    He underscored the need to “continue to do so, and to open up again, safely and responsibly, and allow tourism to deliver on its unique potential as a driver of recovery and growth”.
    According to the WHO International Health Regulations (IHR) Emergency Committee on Covid-19, all measures applied to international travellers should be based on “risk assessments – including testing, isolation and vaccinations”.
    Furthermore, the financial burden of such measures should not be placed on travellers themselves.
    “As countries ease travel restrictions, health must remain the key priority. By basing their decisions on evidence and a risk-based approach adapted to their specific context, countries can find the right balance between keeping people safe, protecting livelihoods and the economy, and keeping borders open”, said WHO director general, Tedros Adhanom Ghebreyesus.

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    ABTA launches new sustainability advice to members

    ABTA has launched new guidance to help travel agents incorporate sustainability into their business practices.
    The guidance was developed in response to feedback from travel agent members for more support on how to adopt a sustainable approach.
    There is also a growing recognition of an appetite among consumers for sustainable travel.
    ABTA research finds that almost three times as many people now say that sustainability is important to them when planning their holiday, compared to ten years ago.
    But ABTA recognises that how agents can engage in sustainability varies depending on the size of their business and resources available. ADVERTISEMENTThe new guidance is designed to help agent members find a sustainability approach that is suitable for their business, whatever their size.
    It focuses on the four areas of sustainability – environment, destination management, animal welfare and human rights – as identified in the Tourism for Good report.
    As well as summarising the different issues within each area, the guidance also includes advice on steps agents can take and case studies on what industry is doing, including from agents, tour operators and other suppliers.
    As part of the guidance, ABTA recommends three ways travel agent Members could approach sustainability:

    Address your own business operations – identify actions to reduce resource use, look after your staff or support your community.
    Explore sustainability in your supply chain – find out how your suppliers are addressing sustainability. For example, do you sell any Travelife hotels? Do you know how aviation is reducing its emissions? Are you aware of products that most tour operators won’t sell and why, such as elephant riding or orphanage visits?
    Engage your customers – think about how you can profile holidays that benefit communities or nature in your marketing and social media activities, to engage your customers and maximise your sales.
    The guidance is free to ABTA Members and is relevant for all types of agents including online travel agents, those with high street stores or individuals working from home. It can be found on the ABTA MemberZone. It also includes links to ABTA’s other resources on sustainability including tips on how to sell sustainability.

    Susan Deer, director of industry relations at ABTA, said: “Sustainability is rising up the agenda on all fronts – from customers to politicians, but it can be hard for travel agents to know where to start when it comes to adopting a sustainable approach as well as finding the time and resource to do this.
    “We know agents have a lot on their plate in terms of rebuilding from the pandemic, so we want to make it as easy as possible for them to look at how they can incorporate sustainability into their businesses.
    “Through our guidance we hope to help agents see how they can approach sustainability, recognising that even small steps can make a big difference, and that activities could help to save money on overheads and support sales conversations with customers.”
    She concluded: “Even if customers aren’t raising sustainability with agents directly – it doesn’t mean that it isn’t on their mind.
    “By being proactive and easing it into sales conversations, agents could help people feel more confident to book, particularly as 41 per cent say they are more likely to book with a travel company with a better sustainability record.”

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