Airline, Organisations & Operators,

The UK Civil Aviation Authority (CAA) has published a consultation on its initial proposals for the next price control at Heathrow Airport.
This will ultimately set the maximum charges the airport operator can charge its airline customers for using the airport for the next five years.
The CAA said it recognises that there is still significant uncertainty in the shape of the aviation industry’s recovery from the Covid-19 pandemic.
These proposals will deliver affordable charges for consumers and allow the airport to continue to invest in service quality, while also supporting consumer demand as the industry recovers.
The package of measures set out in the consultation include a five-year control period, which will allow the airport to smooth charges for consumers and provide investors with medium-term certainty.
The control period will come into force in summer 2022.
The potential range of airport charges per passenger will be from £24.50 to £34.40, an increase from £22 per passenger in 2020.
The CAA will work closely with Heathrow, airlines and other stakeholders to narrow this range over the next few months.ADVERTISEMENTCommenting on the initial proposals, Richard Moriarty, chief executive at the UK Civil Aviation Authority, said: “While international air travel is still recovering, setting a price control for Heathrow Airport against the backdrop of so much uncertainty means we have had to adapt our approach.
“Our principal objective is to further the interests of consumers while recognising the challenges the industry has faced throughout the Covid-19 pandemic.
“These initial proposals seek to protect consumers against unfair charges, and will allow Heathrow to continue to appropriately invest in keeping the airport resilient, efficient and one that provides a good experience for passengers.
The CAA said there would be no additional adjustment to Heathrow’s regulatory asset base to account for losses caused by the pandemic on top of the £300 million the CAA allowed earlier this year in response to a request for an adjustment of £2.3 billion last year.
“We look forward to working with all stakeholders as we refine this package of measures in the coming months, before setting out our final proposals next year.”
Heathrow Airport had requested the CAA increase the cap on its charges per passenger to between £32 and £43.
The proposals drew a furious response to Shai Weiss, chief executive of Virgin Atlantic.
He said: “Today’s initial proposals from the Civil Aviation Authority fail to protect the British consumer, paving the way for Heathrow Airport to introduce unacceptable charges, just as international travel resumes at scale.
“The world’s most expensive airport risks becoming over 50 per cent more expensive, as Heathrow and its owners seek to recoup their pandemic losses and secure hundreds of millions in dividends to shareholders.
“It is concerning that the regulator has failed in its first opportunity to step in, and together with industry partners, we will oppose these proposals in the strongest terms to protect passengers.”
He added: “Abusing its unique position as the UK’s only hub airport, Heathrow’s proposed increase of charges will hurt the UK’s economic recovery and unfairly hit the pockets of families and businesses around the nation.
“No other airport in the world is proposing increases on this scale and by becoming unaffordable, competing EU hubs and airlines will benefit.”

Older
CMA launches court action against Teletext Holidays

Newer
Port Authority of Jamaica celebrates World Travel Awards success More

The Competition & Markets Authority (CMA) has found there are features of the PCR testing market which mean “competition alone will not deliver the right outcomes for consumers”.
The body said there is a risk of a ‘race to the bottom,’ in which providers compete on grounds other than high clinical quality and travellers end up losing out.
Consumers’ complaints include that they are paying over the odds and receiving poor service, with test kits and results arriving late or not at all.
They also say that, when things do go wrong, they are unable even to contact some providers, let alone get refunds when they are due.
In addition to providing advice to the UK government, the CMA is already using its powers to act where it can.
On August 25th, it published an open letter to all PCR test providers warning them to stay on the right side of consumer law.
On September 3rd, the CMA launched an investigation into Expert Medicals, one of the largest providers in the market, and investigations into other companies are being considered.
Meanwhile, a further 19 test providers have also been told directly by the CMA to improve their pricing information or risk further action.ADVERTISEMENTBut the CMA’s review has found that, even with the enforcement of consumer protection law, competition cannot be guaranteed to deliver the right outcomes for consumers in the PCR testing market.
A combination of up-front regulation, monitoring and wider sanctions is needed.
Consumer research also found that being listed on the official government website was the most commonly cited factor in why consumers had chosen a particular provider.
Building on previous advice provided to the Department for Health & Social Care (DHSC), the advice published today makes a number of recommendations, including creating a one-stop shop list of quality, approved test providers by significantly improving the basic standards to qualify for inclusion on the list.
The CMA also suggested introducing a comprehensive monitoring and enforcement programme to ensure providers on the official list meet these basic standards and rules.
Andrea Coscelli, chief executive of the CMA, said: “Buying a PCR travel test is a lottery.
“From complaints about dodgy pricing practices, to unfair terms, to failure to provide tests on time or at all, to problems with getting refunds, the experience for some is just not good enough.
“Recent weeks have underlined that we will not hesitate to take action against any PCR test provider we suspect is breaking the law and exploiting their customers.”
He added: “However, competition alone will not do the job, even when backed by enforcement of consumer law.
“The PCR testing market is unusual because its key features are dictated by Government policy decisions to fight the pandemic.”
The findings come as reports suggest Boris Johnson will scrap the PCR test system in a wider overhaul of travel restrictions later this week.
Commenting on the findings, Rory Boland, Which? travel editor, said: “The government must now urgently set out how it will implement the regulator’s recommendations and ensure safe, reliable and affordable tests are available for all travellers.
“Meanwhile, the regulator must continue to come down strongly on any providers not following the rules, to send a clear message to the rest of the market and prevent any more travellers being left out of pocket.”

Older
United strikes Alder Fuels deal as it seeks carbon reductions

Newer
easyJet holidays joins Future Travel Coalition More

The International Air Transport Association (IATA) has announced that the EU Digital Covid-19 Certificate (DCC) and UK NHS Covid-19 Pass can now be uploaded into IATA Travel Pass.
Both act as verified proof of vaccination for travel.
Travelers holding an EU DCC or UK NHS Covid Pass can now access accurate Covid-19 travel information for their journey, create an electronic version of their passport and import their vaccination certificate in one place.
This information can be shared with airlines and border control authorities who can have the assurance that the certificate presented to them is genuine and belongs to the person presenting it.
“Covid-19 vaccination certificates are becoming a widespread requirement for international travel. ADVERTISEMENT“Handling the European and UK certificates through IATA Travel Pass is an important step forward, providing convenience for travellers, authenticity for governments and efficiency for airlines,” said Nick Careen, IATA senior vice president for operations safety and security. 
Harmonisation of digital vaccine standards is essential to support the safe and scalable restart of aviation, avoid unnecessary airport queues and ensure a smooth passenger experience, IATA argues.
The body said it welcomes the work done by the EU Commission in developing, in record time, the EU DCC system and thereby standardising digital vaccine certificates across Europe.
Building on the EU DCC success, IATA urges the World Health Organisation (WHO) to revisit its work to develop a global digital vaccine standard.
“The absence of a global standard makes it much harder for airlines, border authorities and governments to recognise and verify a traveller’s digital vaccination certificate.
“The industry is working around this by developing solutions that can recognise and verify certificates from individual countries.
“But this is a slow process that is hampering the restart of international travel,” said Careen.
He added: “As more states roll out their vaccination programs, many are urgently looking to implement technical solutions to provide vaccine certification for their citizens when they travel.
“In the absence of a WHO standard, IATA urges them to look closely at the EU DCC as a proven solution that meets WHO guidance and can help to reconnect the world.”

Older
The Balmoral launches Scotch Club in Edinburgh

Newer
Ouachani to lead Hilton New York City Chelsea More

The International Air Transport Association (IATA) has branded a European Commission decision to set the winter slot use threshold at 50 per cent as “out of touch with reality”.
The trade body argued that the commission had ignored the advice and evidence presented by member states and the airline industry, which had made the case for a much lower threshold.
The announcement means that, from November to April, airlines operating at slot-regulated airports must use at least half of every single series of slots they hold.
There is no alleviation to hand back slots at the start of the season allowing airlines to match their schedule to realistic demand or enable other carriers to operate, IATA argued.
Additionally, the rule on ‘force majeure’, by which the slot rule is suspended if exceptional circumstances related to the Covid-19 pandemic are in effect, has been switched off for intra-EU operations.ADVERTISEMENTThe result of these changes will be to restrict the ability of airlines to operate with the agility needed to respond to unpredictable and rapidly changing demand, leading to environmentally wasteful and unnecessary flights.
“Once again the commission has shown they are out of touch with reality.
“The airline industry is still facing the worst crisis in its history.
“The commission had an open goal to use the slots regulation to promote a sustainable recovery for airlines, but they missed.
“Instead, they have shown contempt for the industry, and for the many member states that repeatedly urged a more flexible solution, by stubbornly pursuing a policy that is contrary to all the evidence presented to them,” said Willie Walsh, IATA director general.
The commission argue that the intra-EU traffic recovery this summer justified a 50 per cent use threshold with no alleviation.

Older
Norwegian Cruise Line returns to operation in Greece

Newer
Heathrow continues to feel full force of Covid-19 More

Finnair has started trials of IATA Travel Pass on its Heathrow to Helsinki route.
The trial is taking place until August 11th on flights in both directions between London and the Finnish capital.
It becomes the latest airline to trial IATA Travel Pass, which has gained in popularity throughout the commercial aviation sector.
IATA Travel Pass is a smartphone-based initiative which uses mobile technology to make it easier for airline customers to manage all their proof of Covid-19 certificate status in one handy app, upon departure and arrival.ADVERTISEMENTAs well as making the flight less stressful, the app will also update customers with the most accurate and up-to-date information on various travel requirements for any pending journeys.
Ole Orvér, Finnair chief commercial officer, said: “The app is currently on trial in both directions from our hub in Helsinki to London, and we look forward to hearing our customers’ thoughts on the new solution to decide our next steps with it.
“We are also exploring other digital solutions to ease travelling and coronavirus related travel document management.”
IATA app allows travellers to receive, store and manage any verified Covid-19 certificates securely, giving them reassurance and support for travel.
In the future, the app will enable customers to navigate their way through airports and board their flight more quickly and efficiently.
It will do this by ensuring customers avoid the additional burden of travel document hassle – providing a smoother customer experience for regular travellers.

Older
easyJet to offer Morocco connection from Glasgow this winter

Newer
Brittany Ferries to welcome two new LNG-electric ships More

The International Air Transport Association (IATA) has called on states to follow new guidance on travel from the World Health Organisation (WHO).
The guidance recommends a “risk-based approach” to implementing measures related to Covid-19 and international travel.
Specifically, WHO recommended that governments:

Do not require proof of Covid-19 vaccination as a mandatory condition for entry or exit.
May relax measures such as testing and/or quarantine requirements for travellers who are fully vaccinated or have had a confirmed previous Covid-19 infection within the past six months and are no longer infectious.
Ensure alternative pathways for unvaccinated individuals through testing so that they are able to travel internationally. The WHO recommends rRT-PCR tests, or antigen detection rapid diagnostic tests (Ag-RDTs) followed by confirmatory rRT-PCR tests of positive samples, for this purpose.
Implement test and/or quarantine measures for international travellers “on a risk-based manner” with policies on testing and quarantine regularly reviewed to ensure they are lifted when no longer necessary.

“These common sense, risk-based recommendations from WHO, if followed by states, will allow for international air travel to resume while minimizing the chance of importing Covid-19.
“As the WHO notes – and as the latest UK testing data proves –  international travellers are not a high-risk group in terms of Covid-19. ADVERTISEMENT“Out of 1.65 million tests carried out on arriving international passengers in the UK since February, only 1.4 per cent were positive for Covid-19.
“It’s long past time for governments to incorporate data into risk-based decision-making process for re-opening borders,” said Willie Walsh, IATA director general.
WHO also called on states to communicate “in a timely and adequate manner” any changes to international health-related measures and requirements.
“Consumers face a maze of confusing, uncoordinated and fast-changing border entry rules that discourage them from traveling, causing economic hardship across those employed in the travel and tourism sector.
“According to our latest passenger survey, 70 per cent of recent travellers thought the rules were a challenge to understand,” said Walsh.
Additionally, WHO encouraged states to look at bilateral, multilateral, and regional agreements, particularly among neighbouring counties, “with the aim of facilitating the recovery of key socioeconomic activities” including tourism, for which international travel plays a vital role.

Older
Delta Air Lines returns to profit in second quarter More

The International Air Transport Association (IATA) has called on governments to ensure that high costs for Covid-19 testing do not put travel out of reach for individuals and families.
To facilitate an efficient restart of international travel, Covid-19 testing must be affordable as well as timely, widely available and effective, the body argued.
An IATA sampling of costs for PCR tests (the test most frequently required by governments) in 16 countries showed wide variations by markets and within markets.
Even taking the average of the low-end costs, adding PCR testing to average airfares would dramatically increase the cost of flying for individuals.
Pre-crisis, the average one-way airline ticket, including taxes and charges, cost $200 (2019 data). ADVERTISEMENTA $90 PCR test raises the cost by 45 per cent to $290.
Add another test on arrival and the one-way cost would leap by 90 per cent to $380.
Assuming that two tests are needed in each direction, the average cost for an individual return-trip could balloon from $400 to $760.
The impact of the costs of Covid-19 testing on family travel would be even more severe.
Based on average ticket prices ($200) and average low-end PCR testing ($90) twice each way, a journey for four that would have cost $1,600 pre-Covid, could nearly double to $3,040 – with $1440 being testing costs.
Source: IATA
“As travel restrictions are lifted in domestic markets, we are seeing strong demand.
“The same can be expected in international markets.
“But that could be perilously compromised by testing costs – particularly PCR testing.
“Raising the cost of any product will significantly stifle demand.
“The impact will be greatest for short-haul trips (up to 1,100 km), with average fares of $105, the tests will cost more than the flight,” said Willie Walsh, IATA director general.

Older
No return for P&O Cruises Australia before September

Newer
Virtual Caribbean Travel Marketplace to return next month More

The International Air Transport Association (IATA) has found that passenger traffic fell in February, both compared to pre-Covid-19 levels in February 2019, and to the immediate month prior, January this year.
Because comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of Covid-19, unless otherwise noted all comparisons are to February 2019, which followed a normal demand pattern.
Total demand for air travel in February 2021 (measured in revenue passenger kilometres or RPKs) was down 75 per cent compared to February 2019.
That was worse than the 72 per cent decline recorded in January this year versus two years ago.
International passenger demand in February was 89 per cent below February 2019, a further drop from the 86 per cent year-to-year decline recorded in January and the worst growth outcome since July 2020. ADVERTISEMENTPerformance in all regions worsened compared to January 2021.
Total domestic demand was down 51 per cent versus pre-crisis (February 2019) levels.
In January it was down 48 per cent on the 2019 period.
This largely was owing to weakness in China travel, driven by government requests that citizens stay at home during the Lunar New Year travel period.
“February showed no indication of a recovery in demand for international air travel.
“In fact, most indicators went in the wrong direction as travel restrictions tightened in the face of continuing concerns over new coronavirus variants.
“An important exception was the Australian domestic market.
“A relaxation of restrictions on domestic flying resulted in significantly more travel.
“This tells us that people have not lost their desire travel.
“They will fly, provided they can do so without facing quarantine measures,” said Willie Walsh, IATA director general.

Older
Virgin Voyages headed to Portsmouth this summer

Newer
Carnival reports $2bn loss as return gathers pace More