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    Fosun to bring Thomas Cook brand back to market

    Fosun is preparing to relaunch Thomas Cook as an online travel agency in the coming days, in a dramatic return for the brand.
    The travel giant ceased trading in September last year under a mountain of debt.
    The Chinese conglomerate, which was previously the largest shareholder in Thomas Cook, then stepped in and acquired the branding rights to the company for £11 million in November.

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    Ahead of a potential relaunch, Fosun has now received an ATOL licence for a new venture from the Civil Aviation Authority.
    The CAA website has been updated to show Thomas Cook Tourism (UK) Company has been granted the licence under ATOL number 11806.
    Despite its previously huge scale, carrying hundreds of thousands of passengers anually, the revived Thomas Cook is expected to carry less than 50,000 passengers in its first year.
    The initial ATOL licence is for 364 passengers to the end of September.
    A refreshed website is currently calling on potential Thomas Cook passengers to register their interest.
    Image: Stephan Schulz/DPA/PA Images
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    IATA warns of looming catastrophe for UK aviation sector

    The International Air Transport Association has outlined the need for an urgent rescue plan for UK aviation, in the face of what it brands an “imminent unemployment catastrophe”.
    The United Kingdom is experiencing an air transport crisis, which threatens to put more than 820,000 people out of work across the entire UK economy, IATA said.
    The damage has been exacerbated by government policies, particularly the imposition of quarantine measures which kill demand for air travel.

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    Without immediate action, the UK will fall behind international partners and will quickly lose its coveted position as the third biggest global aviation market, the trade body said.
    In order to resume air connectivity and save thousands of jobs, the UK government must set out a rescue plan for UK aviation.
    IATA proposes a four-point plan to outline a roadmap for lifting quarantine measures and create a short-term boost to demand:
    A testing regime, to unlock travel from high-risk countries.
    A review of the infection threshold for quarantine that is fully transparent and aligned with international partners.
    A suspension of Air Passenger Duty to kick-start demand.
    Extending the furlough scheme for the air transport sector until border restrictions are lifted and the industry has a chance to recover.
    “The stop-start-stop closing of the UK to the world is not a successful survival tactic for Covid-19.
    “Without a rescue plan, 820,000 jobs will be vaporized by quarantine and they may never come back.
    “The answer is a COVID-19 testing regime that manages the risk to keep people safe from the virus. And it will avoid apocalyptic unemployment that is sure to devastate society and the economy,” said Alexandre de Juniac, IATA director general.
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    Job cuts at American Express Global Business Travel in UK

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    Job cuts at American Express Global Business Travel in UK

    American Express Global Business Travel has confirmed it will make cuts to its workforce in the UK as the hospitality industry continues to battle the fallout from the Covid-19 pandemic.
    The company has more than 18,000 staff in 140 countries, with 2,200 based on the UK.
    A statement explained: “GBT is in a very strong financial position, but in the current environment we have to reset our cost base to more closely align with demand.

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    “We have taken measures to protect as many jobs as possible, including the use of government support schemes where available, voluntary retirement and voluntary severance programmes, and introducing new flexible working options.
    “There are some areas where unfortunately these measures alone are insufficient. 
    “Only in these specific circumstances, we will consult with our colleagues on the difficult decision to implement involuntary reductions.
    “We continue to consult with and support affected colleagues throughout this period.”
    Reports suggest a third of the UK workforce could go, but no firm details were forthcoming from the company.
    Last year, Amex GBT reported business travel gross sales of $3 billion for the UK, a figure buoyed by its merger with Hogg Robinson Group.
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    ABTA issues new call for government support

    Convened by ABTA, the Save Future Travel Coalition has written to the UK treasury and other relevant departments with a joint budget submission.
    The travel industry group has outlined plans for tailored support for the sector.
    The letter highlights the strategic and economic importance of both outbound and inbound travel, and the serious situation that businesses face.
    It is signed the leaders of ABTA, Advantage Travel Partnership, AITO, ATAS, the BTA, the SPAA, SBiT, the Travel Network Group and UKinbound.
    Setting out a plan to save future travel, which includes changes to quarantine policy, the introduction of testing and the granting of an APD holiday, the coalition explains that with the right policy and regulatory support the government can save jobs and ensure the viability of the travel industry.

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    Luke Petherbridge, director of public affairs at ABTA, said: “Through the Save Future Travel Coalition, we are uniting behind common asks and seeking to amplify the voice of travel.
    “Our message is clear, travel is a critical strategic sector for the entire UK economy, which underpins the air routes and other transport links that are vital for the UK’s global trade.
    “Failure to support the travel sector will setback the UK’s economic recovery, and it’s vital the government acts quickly to support businesses and retain jobs.”
    Heathrow chief executive John Holland-Kaye earlier warned the UK could face serious economic consequences if action was not taken to protect the aviation sector, while IATA issued a similar caution.
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    IATA warns aviation capacity will be vital for Covid-19 vaccination

    The International Air Transport Association has urged governments to begin careful planning to ensure full preparedness for when vaccines for Covid-19 are approved and available for distribution.
    The association also warned of potentially severe capacity constraints, with as many as 8,000 aircraft needed for the huge task.
    Air cargo plays a key role in the distribution of vaccines in normal times through well-established global time- and temperature-sensitive distribution systems.
    This capability will be crucial to the quick and efficient transport and distribution of Covid-19 vaccines when they are available, and it will not happen without careful planning, led by governments and supported by industry stakeholders.
    “Safely delivering Covid-19 vaccines will be the mission of the century for the global air cargo industry.

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    “But it won’t happen without careful advance planning.
    “And the time for that is now.
    “We urge governments to take the lead in facilitating cooperation across the logistics chain so that the facilities, security arrangements and border processes are ready for the mammoth and complex task ahead,” said IATA director general, Alexandre de Juniac.
    Vaccines must be handled and transported in line with international regulatory requirements, at controlled temperatures and without delay to ensure the quality of the product.
    While there are still many unknowns (number of doses, temperature sensitivities, manufacturing locations, etc.), it is clear that the scale of activity will be vast, that cold chain facilities will be required and that delivery to every corner of the planet will be needed.
    Working effectively with health and customs authorities will, therefore, be essential to ensure timely regulatory approvals, adequate security measures, appropriate handling and customs clearance.
    This could be a particular challenge given that, as part of Covid-19 prevention measures, many governments have put in place measures that increase processing times.
    “Delivering billions of doses of vaccine to the entire world efficiently will involve hugely complex logistical and programmatic obstacles all the way along the supply chain.
    “We look forward to working together with government, vaccine manufacturers and logistical partners to ensure an efficient global roll-out of a safe and affordable Covid-19 vaccine,” said Seth Berkley, chief executive of Gavi, the Vaccine Alliance.
    On top of the transport preparations and coordination needed, governments must also consider the current diminished cargo capacity of the global air transport industry.
    IATA warned that, with the severe downturn in passenger traffic, airlines have downsized networks and put many aircraft into remote long-term storage.
    The global route network has been reduced dramatically from the pre-Covid 24,000 city pairs.
    “The whole world is eagerly awaiting a safe Covid-19 vaccine.
    “It is incumbent on all of us to make sure that all countries have safe, fast and equitable access to the initial doses when they are available.
    “As the lead agency for the procurement and supply of the Covid-19 vaccine on behalf of the COVAX Facility, UNICEF will be leading what could possibly be the world’s largest and fastest operation ever.
    “The role of airlines and international transport companies will be critical to this endeavour,” said Henrietta Fore, UNICEF executive director.
    The potential size of the delivery is enormous.
    Just providing a single dose to 7.8 billion people would fill 8,000 747 cargo aircraft.
    Land transport will help, especially in developed economies with local manufacturing capacity.
    But vaccines cannot be delivered globally without the significant use air cargo.
    “Even if we assume that half the needed vaccines can be transported by land, the air cargo industry will still face its largest single transport challenge ever.
    “In planning their vaccine programs, particularly in the developing world, governments must take very careful consideration of the limited air cargo capacity that is available at the moment.
    “If borders remain closed, travel curtailed, fleets grounded and employees furloughed, the capacity to deliver life-saving vaccines will be very much compromised,” concluded de Juniac.
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    Cities Direct closes in wake of Covid-19 slowdown

    Cheltenham-based Cities Direct has closed in the wake of the Covid-19 pandemic.
    The news was announced earlier by Martyn Sumners, executive director of AITO, following consultations with managing director, Jace Quick.
    Sumners explained: “Cities Direct had been a member of AITO for nearly nine years and had traded for 20 years. 
    “The company had full financial protection in place via the CAA, ABTA and IPP.
    “Understandably, in the current very difficult trading climate, they saw a lack of consumer demand and felt that they would be throwing good money after bad if they battled on and borrowed money.

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    “At AITO, we are hugely sorry about the demise of Cities Direct.
    “Jace and his team will be missed, and we wish them well for the future, whatever they each decide to do as individuals.”
    Cities Direct was launched in September 2000.
    A statement from the company said: “We have had an incredible 20 years developing and growing Cities Direct in an ever-evolving industry. 
    “We have very much enjoyed the experience, and would like to thank our staff, travel industry partners and many loyal customers for all their support over the years.
    “We had so many exciting plans for the future of the business, but the impact of Covid-19 travel restrictions has been devastating.”
    Sumners said the failure should prompt government action to support the travel sector.
    He added: “In such problematic times, while AITO battles to convey to the many government departments to which we report the myriad problems that our SMEs are encountering – without much in the way of reaction or assistance to date – this is a clear indication of the desperate straits that many formerly vibrant companies find themselves in, through no fault of their own.
    “We hope that this first AITO Covid-19 casualty signals clearly to government that the many U-turns it has taken over the past six months have severely shaken consumer confidence when it comes to booking overseas holidays.
    “The entire outbound travel market is under intense pressure.
    “We need government support to enable us to survive and to continue to pay our usual enormous amounts of tax into the exchequer for the greater good. 
    “The alternative is too depressing for words.”
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    Hospitality industry gives mixed response to quarantine move

    Bodies from across the UK tourism industry have given a cautious welcome to a refinement of the quarantine system, but said more must be done to boost the sector.
    Transport secretary, Grant Shapps, earlier explained a more nuanced approach to quarantine restrictions, separating some islands from mainland countries.
    As a result, seven Greek islands have been removed from the current safe list.
    Responding to the decision, an ABTA spokesperson said: “ABTA has been calling for the government to take a regionalised approach to quarantine measures and Foreign Office travel advice to provide greater certainty for businesses and consumers.
    “This announcement regarding travel from specific islands to England is welcome and the industry hopes that this will in turn lead to a more targeted approach such as that adopted in Germany and the Netherlands, which would also reflect the domestic strategy of localised lockdowns.
    “It also, however, highlights the requirement for a more coordinated approach from the home nations to prevent avoidable confusion.”
    The spokesperson added: “The travel industry has long been a powerhouse of economic growth and employment within the economy, yet it has been restricted by government measures which have slowed any recovery.”
    However, while welcoming the decision to tailor quarantine restrictions, a statement from Heathrow called for more testing to be introduced.
    A spokesperson explained: “We welcome the transport secretary’s announcement that testing to shorten quarantine is under active consideration by the government and that airbridges to islands will now be instated where appropriate.
    “If introduced, these vital policy changes would show the government understands how critical the restoration of air travel is to this country’s economic recovery.

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    “The government needs to build on these developments and show global leadership to establish common international standards for testing before flight.”
    Heathrow has been developing its own test facilities as it attempts to encourage the government to introduce a new policy.
    Charlie Cornish, chief executive of MAG, said the move toward more focused quarantine was to be welcomed, but it would not be enough for the aviation industry to recover.
    He explained: “It is good that Grant Shapps is responding to the concerns of the aviation industry, and committing government to look at how testing can be used to reduce the time people need to spend in quarantine.
    “Adopting a regionalised approach to travel corridors is also welcome news and long overdue. 
    “Even though it will initially mean restrictions on travel to some Greek islands, it should enable key markets like the Balearics and Canaries to open up again more quickly.
    “We look forward to seeing more detail about this targeted approach as soon as possible and to working together to continue refining the system of corridors and quarantine, including considering regions within countries on the mainland.”
    Cornish, who has been an outspoken critic of the government policy to date, added: “The top priority should be bringing in a testing regime that will shorten the period of time passengers have to self-isolate.
    “With hundreds of thousands of travel sector jobs at stake and the summer holiday season already behind us, progress must be made on this as a matter of urgency.”
    MAG owns and operates Manchester, London Stansted and East Midlands Airports.
    Santorini is among the islands to have been removed from the safe list
    Gloria Guevara, chief executive of the World Travel & Tourism Council, took a similar tack, welcoming the decision, but calling for further steps.
    “WTTC is encouraged the government is beginning to listen and has now introduced its island policy.
    “This move appears to show a more strategic approach and signals a change from its previous blanket country-wide approach.
    “We look forward to seeing how this is going to be communicated to holidaymakers,” she said.
    “However, this is just scratching the surface.
    “We must abandon wholesale ineffective, destructive and costly quarantines – and replace them with rapid, cost-effective testing on departure at airports.
    “The longer we wait, the more the ailing tourism sector faces collapse.
    “Airport testing on departure and a robust testing and tracing programme, could help revive international business travel, particularly on key routes, such as between London and New York.”
    The WTTC has previously warned some £22 billion looks set to be lost from the UK economy due to the disappearance of international travel this year.
    Finally, Rory Boland, editor of Which? Travel, said the government should reveal more of its thinking when introducing changes.
    “Holidaymakers are acutely aware of the risks involved with foreign travel, but this latest snap change still offers no clarity as to how these decisions are made.
    “This approach continues to cost travellers dearly, either through paying extortionate airfares in the scramble to get home, or because speculation that their destination may be added to the quarantine list causes them to needlessly cancel a holiday.”
    Boland concluded: “It’s clear that the current travel corridor system is not working for passengers, and is further damaging confidence in the sector.
    “A major reassessment of the UK government’s approach is needed to ensure holidaymakers don’t continue to lose money, and tour operators and airlines have a better opportunity to get back on their feet financially.”
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    TrekAmerica to cease operations in wake of travel slump

    Tour operator TrekAmerica has become the latest victim of the slump in travel caused by the Covid-19 pandemic.
    The company earlier said it would cease trading as part of a wider restructure of the adventure division at owner Travelopia.

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    A statement from the company explained: “We’re incredibly sad to say that due to ongoing uncertainties from Covid, TrekAmerica won’t be continuing to run trips.
    “This has been an incredibly difficult decision to make.”
    No further bookings will be taken, while refunds will also be offered.
    Those still looking to travel can transfer bookings over to other Travelopia brands, including Exodus Travels or Exodus Edits.

    A sad announcement today… pic.twitter.com/J3tSFUV9hf
    — TrekAmerica (@trekamerica) September 7, 2020
    TrekAmerica said it would be in touch with holidaymakers to work through the changes.
    A statement added: “For almost 50 years, we’ve been honoured to be part of your incredible travel stories.
    “Even though we’re driving off into the sunset, we hope the friends and memories our Trek community have made will live on in our Trekkers for many more years to come.”
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