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    Slow aviation recovery comes to a standstill

    The International Air Transport Association (IATA) has announced that the slow recovery in passenger demand came to a halt in November.
    A moderate return had been slowing in place since the summer travel season in the northern hemisphere came to an end.
    Total demand (measured in revenue passenger kilometres or RPKs) was down 70 per cent compared to November 2019, virtually unchanged from the 70 per cent year-to-year decline recorded in October.
    November capacity was 58 per cent below previous year levels and load factor fell 23 percentage points to 58 per cent, which was a record low for the month.
    International passenger demand in November was 88 per cent below November 2019, slightly worse than the 88 per cent year-to-year decline recorded in October.

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    Capacity fell 77 per cent below previous year levels, and load factor dropped 39 percentage points to 41 per cent.
    Europe was the main driver of the weakness as new lockdowns weighed on travel demand.
    Recovery in domestic demand, which had been the relative bright spot, also stalled, with November domestic traffic down 41 per cent compared to the prior year (it stood at 41 per cent below the previous year’s level in October).
    Capacity was 27 per cent down on 2019 levels and the load factor dropped 16 percentage points to 67 per cent.
    “The already tepid recovery in air travel demand came to a full stop in November.
    “That’s because governments responded to new outbreaks with even more severe travel restrictions and quarantine measures. 
    “This is clearly inefficient.
    “Such measures increase hardship for millions.
    “Vaccines offer the long-term solution. In the meantime, testing is the best way that we see to stop the spread of the virus and start the economic recovery.
    “How much more anguish do people need to go through—job losses, mental stress—before governments will understand that?” said Alexandre de Juniac, IATA chief executive.
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    ABTA confirms agents are eligible for new government grants

    The government has published amended regulations that explicitly reference retail travel agents as businesses that are required to legally close in tier four areas within England.
    Trade body ABTA argued the confirmation was a welcome step in ensuring agents in England are eligible for grant support under the localised restrictions support grants regime.
    The previous exclusion of travel agents from the regulations had resulted in agents being denied much needed funding from local authorities under the scheme.
    Following lobbying from ABTA, the devolved nations had already clarified that grants support for businesses in the highest levels of restrictions would be extended to retail travel agents, but the UK government had previously failed to provide this clarity for businesses in England.

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    ABTA has been having ongoing discussions with officials in the government to argue that this approach must be matched in England.
    Luke Petherbridge, ABTA director of public affairs, said: “Securing grant funding for travel businesses has been a key focus of ABTA’s work in recent months.
    “The confirmation from the UK government today builds on actions by the devolved administrations on this matter and should bring an end to the postcode lottery of grants experienced by agents.
    “We are pleased to see the government has listened to our calls for clarification and acted on it today.
    “We also believe it should mean that travel agents are eligible for the retail, hospitality, and leisure businesses grants, although we are still awaiting the specific government guidance on this.”
    All areas of England entered the revised tier four under the latest national lockdown.
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    Tour operators cancel trips until mid-February

    Virgin Holidays has become the latest travel firm to cancel holidays after new Covid-19 lockdown restrictions were imposed in part of the UK.
    The tour operator said refunds would be offered to travellers due for departure before mid-February.
    Rivals Tui Group, Jet2 and Thomas Cook have announced similar moves in recent days.
    The recently relaunched Thomas Cook said it would call customers to offer refunds or rebooking.
    Tui added it was “cancelling all holidays in line with international travel restrictions”.

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    The travel giant added that customers due to depart from England, Scotland and Wales would be contacted to discuss options.
    The company said that customers due to travel from an English airport before mid-February, or from a Scottish or Welsh airport up to January 31st, would not be able to do so.
    In a statement, Virgin Holidays said: “In line with the new national lockdown restrictions we have reviewed the upcoming holiday schedule and will be cancelling all holidays up to and including February 14th.
    “To simplify the options and to provide immediate peace of mind for customers whose holidays will no longer be going ahead, we are automatically providing a digital voucher for the value of their trip, redeemable up until September 30th, which they can use to rebook a holiday, departing any time before December 31st.”
    Virgin added that customers “may also request a refund”.
    However, the company has been criticised for failing to issues timely cash to passengers in the past.
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    TUI Group wins approval for latest rescue package

    TUI Group has finalised a €1.8 billion financing package led by the German government as the company battles the fallout from the Covid-19 pandemic.
    The deal, originally announced in early December, involves cash from the German Economic Support Fund (Wirtschaftsstabilisierungsfonds or the WSF), a syndicate of underwriting banks, Unifirm Limited, and the German state-owned development bank KfW.
    Fritz Joussen, chief executive of TUI, said of the deal: “Before the Covid-19 pandemic, TUI was a very healthy company.
    “The market is intact; the demand is there.
    “But we have not been able to generate any significant revenues since March.

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    “Our integrated business model allows us to react very flexibly to short-term changes in the pandemic situation, just as we successfully ramped up our travel programme for a few weeks in July after the first wave.
    “People want to travel; tourism remains a growth industry and an important sector for stabilising the southern euro area.”
    The package consists of silent participations of the WSF, a further credit line of the KfW, guarantees and a capital increase with subscription rights.
    The Mordashov family, owners of Unifirm, have made a long-term strategic investment in TUI and has agreed to participate in the capital increase with its company.
    Joussen added: “The financial package provides the security to look consistently ahead and to prepare the group strategically and structurally for the time after the pandemic.”
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    CLIA places innovation at centre of new wave campaign

    Cruise Lines International Association (CLIA) UK & Ireland has announced that its Wave 2021 campaign will be called ‘Generation Innovation’.
    The campaign will promote the diverse range of innovative initiatives and activities being rolled out across the industry and by individual cruise lines, as the sector takes its next steps towards a return to service.
    The cruise industry trade association will use the hashtag #GenerationInnovation on its social media channels to promote the campaign. 
    Its regular ‘Cruise Podcast’ will feature guests from across the industry with innovation expertise, and ‘Wave Half-Wower Webinars’ are being introduced every Thursday in January at 09:30.
    The webinars will feature four cruise line partners per episode, who will highlight their latest offers and innovations to help agents make the most of Wave.

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    The first episode, broadcasting tomorrow (January 7th), will comprise Celebrity Cruises, MSC Cruises, Princess Cruises and Riviera Travel.
    Meanwhile, CLIA’s ongoing stakeholder outreach programme – which includes MPs and influential travel groups – will be used to highlight the progress being made.
    Andy Harmer, CLIA director UK & Ireland, said: “From the health and safety measures set to be implemented, to the significant sustainability progress being made, to developments in technology on and off ships, the cruise sector has much to be proud of.
    “These innovations have never been more important, as Wave gets under way and we further set our sights on the industry’s phased recovery.
    “We’ll be highlighting all the incredible work being carried out, both on an industry-wide level and by individual cruise lines.
    “Our trade partners have backed cruise through all the recent challenges, and we hope we can count on their support and engagement again during this critical period.”
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    Comito steps down as leader of Caribbean Hotel & Tourism Association

    Frank Comito has stepped down as chief executive and director general of the Caribbean Hotel & Tourism Association (CHTA).
    During his tenure he led the association through the Covid-19 pandemic, several devastating hurricanes and numerous global challenges impacting the industry.
    The transition to new leadership comes at the conclusion of nearly 40 years of service to local and regional private sector organisations in the Caribbean.
    In a message to members, Comito, who will serve as a part-time special advisor to the organisation, said he was proud of how quickly and effectively CHTA adapted over the past ten months, working in collaboration with public and private sector stakeholders to address the Covid-19 pandemic.
    He added that Covid-19 remained a critical concern, and declared the industry needs CHTA, its regional public sector ally, the Caribbean Tourism Organisation (CTO), and local private and public sector tourism associations and entities working together towards the industry’s recovery now more than ever.

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    “Our work has a bottom-line impact on restoring tourism and economies,” he stated.
    Looking to the future of Caribbean tourism and CHTA, he voiced optimism that despite the headwinds facing the tourism sector and the association, industry leadership working with local and regional tourism associations will address immediate needs, mitigate the impact of the Covid-19 crisis, and help to steer a course to the future.
    Comito was hired by CHTA six years ago when he made a five-year commitment to help refocus the organisation and address several longstanding challenges the organisation was facing.
    The leadership of the CHTA had endorsed Vanessa Ledesma in assuming the post of acting chief executive officer and director general.
    Formerly chief operations officer with CHTA, she has been noted for her skills, experience, integrity and deep passion for the industry.
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