‘A National Disgrace’: British Airways lambasted in Westminster report

British Airways’ treatment of staff ‘a national disgrace’, say MPs

UK-based airlines and other aviation employers should not proceed hastily with large scale redundancies and restructuring to employees’ terms and conditions until the Job Retention Scheme ends in October 2020 and they have had the opportunity to consider the Government’s plans to help the sector restart and recover, say MPs.

In a report exploring the gravity of the crisis facing the UK’s aviation sector, the Transport Committee says fundamental decisions about people’s livelihoods should not be made prematurely.

Several aviation companies have announced redundancies, despite accessing the Government’s Job Retention Scheme designed to help businesses severely affected by the pandemic to retain employees and protect the economy.

The actions of British Airways and parent company, International Airlines Group, draw particular criticism. The committee’s view is that BA’s current consultation on staffing changes is a calculated attempt to take advantage of the pandemic to cut 12,000 jobs and to downgrade the terms and conditions of approximately 35,000 employees. The consultation is due to end on June 15th.

Chair of the Transport Committee, Huw Merriman MP, said: “The impact of coronavirus may sadly mean that the loss of some jobs in the aviation sector is justified. The behaviour of British Airways and its parent company, IAG, is not.

“It falls well below the standards expected from any employer, especially in light of the scale of taxpayer subsidy, at this time of national crisis. It is unacceptable that a company would seek to drive this level of change under the cover of a pandemic.

“We looked closely at BA’s plans to consult on at least 12000 redundancies and change the terms and conditions of the bulk of its employees. Many submitted written evidence to our inquiry and we thank them.

“As a committee, we have sought to examine this further and drive change using the means open to us through the House, asking Urgent Questions, seeking debates, introducing legislation and putting questions directly to the Prime Minister.

“We will continue to bring pressure where we can, including the airport slot allocation process. This wanton destruction of a loyal work force cannot appear to go without sanction – by Government, parliamentarians or paying passengers who may choose differently in future. We view it is as a national disgrace.”

The introduction of a 14 day blanket quarantine for travellers to the UK from other countries will damage the recovery of the sector and the wider economy, says the report.

Should the conditions allow in late June, the Committee calls for the quarantine policy to be abandoned when it is next reviewed and urges Government to introduce a more flexible and risk-based approach to border control, using alternatives such as targeted quarantines, ‘air bridges’ and temperature screening. In defending its decision, the Government should clearly set out the evidence it used to reach its decision.

Thousands of passengers who booked holidays and flights are still waiting on refunds from airlines and travel operators in accordance with their legal obligations, causing them additional stress and hardship.

The Government should consider whether protections for passengers can be built into the planned Airline Insolvency Bill.

MPs also recommend that the Department for Transport and the Civil Aviation Authority, responsible for enforcing current rules, conduct a speedy review of its powers to ensure it can enforce the rights of passengers in an effective and timely way.

Acknowledging the extraordinary pressures on providers, the Committee asks the Department for Transport to clarify why an extension to the legal deadlines for issuing refunds was not implemented in the UK.

Four months into the crisis, today’s report says the Government’s strategy should be more developed.

The Government’s Aviation Restart, Recovery and Engagement Unit is a welcome first step but the Government should bring forward a strategy for the aviation sector as soon as possible. To stimulate demand and protect businesses, the Committee recommended a temporary six month suspension of Air Passenger Duty payments and 12 month business rates relief for airlines and airports across the UK, as is currently the case in Scotland.

Chair of the Committee, Huw Merriman MP, added: “Few industries have been affected more by the coronavirus pandemic than aviation. Thousands of planes, and thousands of passengers, have been grounded, resulting in a 97% reduction in passenger flights compared to the previous year.

“This vital sector of the UK economy could lose more than £20 billion in revenue. Government must press on with a collaborative strategy for recovery.

“It is imperative that the UK Government finds a way to get aviation back on its feet. We don’t believe this fits with a blanket 14 day quarantine period for travellers to the UK.

“In today’s report, we recommend a more agile response. We also outline our support for a temporary suspension of Air Passenger Duty payments and support with business rates.

“Passenger confidence in airlines and travel operators, dented by unnecessarily difficult refund processes, must be rebuilt. We recommend the Government considers whether new protections for passengers should be introduced ahead of future pandemics or other extraordinary circumstances.”

The Committee’s inquiry is part of a wider look at the impact of coronavirus on UK transport. This first look at aviation did not examine the longer-term implications for air travel and MPs intend to return to this once the immediate crisis has subsided.

Rory Boland, Editor of Which? Travel, said: “The travel industry’s handling of cancellations and refunds has left consumers out of pocket and trust in the sector at a record low – so the committee is right to call for the government to introduce measures to improve protections for travellers.

“Which? has been calling for airlines and holiday firms to comply with the law on customer refunds and for clarity around Refund Credit Notes since the sector was thrown into chaos earlier this year, so action is long overdue.

“The government must urgently set out how it will take these recommendations forward, to restore trust in the industry before it is permanently damaged and ensure customers receive the billions of pounds they are collectively owed in refunds.”

New health measures for travellers to Scotland

The UK government’s plans for 14 days self-quarantining of arrivals will spell disaster for Scotlands aviation industry – GMB 

GMB, the union for aviation staff, has described the UK government’s plans to introduce self-quarantine for UK arrivals as ‘ill thought out’. 

From today (Monday 08 June) arrivals to the UK will be expected to quarantine for 14 day save for a list of exempted professions.

GMB believes the move lacks scientific evidence and will be disastrous for the aviation industry and the economy in Scotland.

The union has launched the Save Our Airports campaign with six key demands which include extending the 80% furlough scheme for another 12 months, a financial package to support the aviation industry and a commitment to work with unions to deliver a way forward for the industry.

In 2018 the aviation industry supported almost 23,000 jobs in Scotland and contributed more than £240 million to the economy. The gross median salary of an air transport worker in 2018 was around £30,000.

In recent weeks many of these workers have been risking their own health facilitating cargo flights containing vital medical, food supplies and PPE to aid in the national effort against Covid 19 infections.

The union argue that airports are of huge significance to regional economies; providing highly skilled jobs which are often difficult to replicate, whilst also contributing to the creation of almost 126,000 supply chain jobs.

GMB national officer Nadine Houghton said: “The UK Government’s plans for self-quarantining arrivals to the UK will prove disastrous for an already beleaguered aviation industry. 

“This is a populist move, made without any real scientific evidence or consultation with the industry and unions representing hundreds of thousands of workers throughout the sector.

“Many people forget the huge significance of the aviation industry to the economy of Scotland and the impact this quarantine will have on much needed jobs here.

“Aviation jobs aren’t just about airlines, cabin crew and pilots; the aviation industry provides important supply chain jobs to baggage handlers, security, fire crews, taxi drivers and retail workers.

“If the UK government don’t end this ill thought out policy and step in with a bespoke financial package for aviation then thousands of regional aviation jobs will be lost. It’s not too late for the UK government to act.”

The new public health measures come into force today (8 June) to help suppress coronavirus (COVID-19) and prevent new cases being brought into Scotland.

The range of measures, which will be broadly similar to those in other parts of the UK, will include:

  • a requirement for residents and visitors entering the UK from abroad to self-isolate for 14 days
  • the completion of an online passenger locator form by all travellers prior to travel to supply contact details, travel details and the address of where they will self-isolate
  • spot checks at the border by Border Force, who may impose fines on travellers who refuse to comply
  • arrangements for some of those arriving into Scotland to be contacted during their period of self-isolation for the provision of public health advice and information
  • powers for police to impose a fixed penalty notice for anyone failing to comply with the mandatory conditions, with the ability to report persistent offenders to the Procurator Fiscal for potential prosecution

Justice Secretary Humza Yousaf said: “We are, as a country and across the world, continuing to deal with unprecedented challenges that this pandemic brings. These public health measures will play an important part in helping to prevent further spread of the disease.

“These steps are aimed at protecting people and ensuring that we limit spread when our own infection rates are falling. However, they are temporary and will not be in place any longer than deemed necessary to protect public health – as such, they will be reviewed after three weeks.”

Rory Boland, Editor of Which? Travel, said: “Over the past few weeks, the UK government has caused endless confusion among travellers over whether holidays can go ahead.

“Even today, as it ushers in 14-day quarantine for UK arrivals, many consumers are confused as to whether the holiday they already have booked will take place due to the lack of consistent communication from the government.

“Meanwhile, the absence of a definitive date from the FCO on when its travel ban will remain in force until continues to allow travel firms to sell holidays departing in the next few weeks that almost certainly can’t go ahead.

“Not only will those customers not get a holiday, but they may not get their money back either – as some travel firms continue to delay and deny refunds.”

Four in five Ryanair passengers still waiting for refunds

The majority of Ryanair passengers surveyed who have asked for a refund for a cancelled flight during the coronavirus crisis are still waiting for their money back, according to new research from Which?.

Which? surveyed nearly 2,800 airline customers that had flights cancelled since mid-March as a result of the global pandemic, to find out about their experience with their airline. Of those, over 1,600 people told Which? they asked their airline for a cash refund.

Ryanair was the worst of the UK’s four biggest airlines for processing refunds for cancelled flights, with 84 per cent of those who asked for a refund telling Which? they have still not received their money back.

Just five per cent of Ryanair customers surveyed said they had their money returned to them within seven days – the time frame that EU carriers are legally obliged to process refunds within. Only one in six (16%) Ryanair customers have received a refund at all.

Ryanair customers have continuously complained to the consumer champion about the airline’s approach to processing refunds, with numerous changes to its approach to refunds confusing customers of their options.

Despite initially telling customers it was processing refunds at the beginning of the crisis, customers reported that Ryanair provided refund forms that didn’t work, before attempting to force vouchers on passengers who had specifically requested refunds. It also repeatedly changed the timeframe for receiving a refund, suggesting at one point customers may have to wait up to 12 months for their money back.

Easyjet customers also reported finding it difficult to get a refund. Just one in seven (14%) Easyjet customers received a refund within seven days, and around three in five (63%) are still waiting for their money back.

In contrast, a quarter (23%) of British Airways customers and one in five (19%) Jet2 customers are still waiting for their money back, with four in 10 (39%) BA customers receiving their money back within the legal time frame, and three in 10 (29%) Jet2 customers refunded within the seven day window.

British Airways has previously been criticised for its approach to refunding customers, removing its online form for requesting a refund and instead directing customers to a phone line where they are often unable to speak to someone due to high call volumes.

Which? recently revealed that trust in the travel industry has reached an all-time low, with data from its Consumer Insight tracker showing that trust in airlines and holiday companies has dropped to its lowest score on record in the seven years the consumer champion has collected the data, following airlines’ handling of refunds for cancelled flights.

Following the Civil Aviation Authority (CAA) announcing its investigation into airlines’ handling of refunds, Which? has launched a tool to allow consumers to report their airline to the regulator if they have been unable to get a refund for a cancelled flight, and is encouraging people to share their experiences.

Which? has also repeatedly called on the government to step in with urgent support for the industry, to allow airlines and holiday companies the financial means to refund their customers without fear of going bust, and to help restore trust in the travel industry.

Rory Boland, Editor of Which? Travel, said: “We have heard from thousands of frustrated passengers who have told us they are finding it almost impossible to get refunds they are legally entitled to from airlines, with some having waited months now without a penny returned to them.

“Some airlines are doing much better than others at refunding their customers, proving that while these are indeed difficult times for the industry, withholding customers’ money from them is simply inexcusable.

“The regulator and government cannot sit on their hands any longer. The CAA must urgently hold airlines that are brazenly breaking the law to account, and the government must set out how it will support the industry where necessary if airlines are unable to refund their customers without fear of going under.”

Time taken to refund British Airways Easyjet Jet2.com Ryanair
Within 7 days 39% 14% 29% 5%
Refund not yet received 23% 63% 19% 84%

Ryanair did not respond to Which?’s request for comment.

A spokesperson for British Airways said: “If a customer’s flight has been cancelled, they should call us to discuss their options. They can rebook, refund or choose to take a voucher to fly at a later date. Refunds can be requested at any point up to 12 months after the start date of the journey.”

A spokesperson for Easyjet said: “Customers on cancelled flights can transfer to an alternative flight free of charge or receive a voucher for the value of their booking online. Customers may also request a refund by submitting a claim in writing via a dedicated refund webform, online. We are processing refunds for customers and aim to do so in less than 28 days.”

A spokesperson for Jet2 said: “In view of the ongoing travel restrictions caused by the Covid-19 pandemic, we have taken the decision to recommence our flights and holidays programme on July 1st. The health and safety of our customers and colleagues is our absolute priority, and we are continuing to monitor the situation very closely.

“Like all other airlines and tour operators, the restrictions caused by the Covid-19 pandemic have impacted us. With aircraft grounded, our focus has been on looking after the many thousands of customers whose flights and holidays have been affected, and we are very proud to have been repeatedly praised by customers, media outlets, industry commentators and consumer organisations for how we have been treating customers in response to the pandemic.

“We are continuing to operate a fully staffed call centre, and even though our teams are subject to the same difficulties and restrictions as everyone else, they are working tirelessly to proactively contact customers in departure date order to discuss their options. We believe that contacting customers in departure date order is the fairest way to deal with this, and the feedback we have received tells us this has been the right thing to do.

“We understand that these unprecedented events have had a huge impact on our customers, and we would like to thank them for their loyalty, understanding and patience.”

Report your airline to the regulator: https://action.which.co.uk/page/s/flight-complaint

 

Bus Passes: public transport information

Due to COVID-19 and the current travel restrictions in place, Transport Scotland’s card production bureau who produce the National Entitlement Cards (bus passes) closed on Friday 27 March until further notice.

This means that no new or replacement cards will be issued from this date and until the production bureau reopens.

The UK and Scottish Government advice is for people to stay at home and not travel unnecessarily, however we understand that some people may have essential travel requirements and have therefore made temporary provisions with the bus industry, where someone has an essential need to travel but has been unable to obtain a card due to this closure, that they explain their circumstances and the driver will allow them to travel.

If you have a valid card which does not register on the ticket machine, during this time you should not exchange your card with the driver for a 7 day temporary pass, as you will be unable to obtain a replacement card within those 7 days. The driver will allow you to travel whilst retaining your card.

If your card has recently expired and you have been unable to get a replacement, please show your expired card to the driver. The driver will let you travel.

If you have lost your card please explain to the driver that you have been unable to obtain a replacement card due to the closure of local authority offices and the card production bureau. The driver should allow you to travel.

We apologise for any inconvenience this may cause however we appreciate your understanding and co-operation during this challenging time.

If you have any questions or concerns these can be addressed by emailing us at concessionarytravel@transport.gov.scot

Foreign Secretary: Come Home NOW

The Foreign & Commonwealth Office (FCO) has advised all British travellers to return to the UK NOW.

Read our latest coronavirus travel advice.

  • all British travellers abroad who are usually based in the UK advised to return now
  • international travel is becoming highly limited with the further closure of air routes, land borders and domestic restrictions introduced daily
  • British travellers should contact their tour operator or airline now. Commercial flight options are still available at present.

All British tourists and short-stay travellers currently abroad should return to the UK where and while commercial flight options are still available, the Foreign Secretary announced yesterday.

Last week, the FCO announced an unprecedented change in travel advice to advise against all but essential international travel, initially for a period of 30 days.

Monday’s update reflects the pace at which international travel is becoming more difficult with the closure of borders, airlines suspending flights, airports closing, exit bans and further restrictions being introduced daily. Further closures to air routes may come in the next 48 hours, possibly without notice.

Some British tourists abroad are already finding difficulties returning to the UK because of international travel restrictions and domestic policies around the world. The FCO is working around the clock to support all British travelers in this situation come back to the UK.

The UK government is working with airlines to keep routes open and is calling for international action to keep air routes open for a sufficient period of time to enable international travellers to return on commercial flights.

Foreign Secretary, Dominic Raab, said: “We are strongly urging UK travellers overseas to return home now where and while there are still commercial routes to do so. Around the world, more airlines are suspending flights and more airports are closing, some without any notice.

“Where commercial routes don’t exist, our staff are working round the clock to give advice and support to UK nationals. If you are on holiday abroad the time to come home is now while you still can.”

Transport Secretary, Grant Shapps, said: “This is a very difficult time for British citizens travelling overseas, or those with families and loved ones abroad.

“We’re in close contact with airlines, who are working tirelessly to ensure British citizens travelling overseas can safely return to the UK. We are also working closely with other government departments, including the FCO to ensure airlines are able to operate to bring people back home.”

British travellers should contact their tour operator or airline now to arrange a commercial flight if they want to leave. There is an unprecedented demand on the FCO’s consular services so all British tourists abroad should go online for the latest in-country advice.

This advice is aimed at British people travelling abroad, rather than those who are permanent resident overseas who are urged to follow the advice of the local authorities in their host country.

Rory Boland, editor of Which? Travel, said: “While it’s right British travellers are being urged to return to the UK, the reality is that there are now thousands of UK residents stranded in dozens of different destinations with no means to get back.

“The government must improve its communication and provide British citizens fearful of being stranded abroad with useful advice. Where scheduled services have been withdrawn, it should leave no stone unturned to get these people on flights home.”

Consumers face losing thousands amid travel protection breakdown

Which? is warning urgent action is needed to protect consumers who face losing large sums of money amid a breakdown of the system of travel protections.

The consumer champion has been inundated with messages and requests for help from people who face losing large sums – with some airlines and package travel providers refusing to meet their legal obligations to issue refunds for cancelled flights and holidays.

While Which? supports the government exploring options to help the travel industry, it is demanding that the crisis not be used as an excuse to undermine consumer protections. Reports of some package providers refusing refunds running into thousands of pounds in expectation of changes to the law are unacceptable.

Which? has heard from a family who were meant to be travelling to a wedding in Italy and whose flights have not been cancelled, despite Foreign Office (FCO) guidance against going to the country hardest hit by the virus.

Instead, the airline is offering to switch their flights to more expensive ones in the future. In some cases this can cost as much as £100 more per person.

The consumer champion has also been contacted by unhappy airline customers who are being offered vouchers instead of being refunded, with many complaining that they have received no clear guidance from their airline about what the next steps will be.

All flights on EU carriers in or into the EU and all flights leaving from an EU airport are protected by the EU’s Denied Boarding Regulation, which requires refunds or rerouting when flights are cancelled.

People have also been in touch reporting that their travel agents are refusing to offer refunds for cancelled holidays, despite travel regulations. Dozens of holidaymakers due to travel to France in the coming weeks have told  Which? that their travel agent is refusing to issue a refund.

One customer was refused a refund for his holiday with a well-known beach holiday specialist. The customer faces losing £2,300 and the only options being offered are a credit note or rebooking. And, that if he decided to cancel instead, he would have to try to claim on his travel insurance.

The law says you are entitled to a full refund if your package holiday is cancelled because of extraordinary circumstances at the destination – so you do not have to accept a credit note.

Faced with these difficulties, many people are finding themselves pushed from pillar to post between airlines, tour operators and insurance companies – whose policies are not set up for providers failing to fulfill their duties in this way.

Which? has also heard from holidaymakers who have fallen foul of little-known exclusions in insurance policies – meaning they were not covered for cancelling an upcoming trip, even after the FCO advised against travel to their destination.

Many more people are concerned that they will be uninsured for upcoming trips booked well before the coronavirus outbreak as insurers make sudden changes to their policy terms and conditions.

Taken together, these issues represent a serious breakdown of the current system of travel protections, which is vital to ensuring millions of consumers have the confidence to book expensive holidays and flights abroad.

Urgent action is needed to protect consumers amid the crisis in the travel industry. It is vital that any emergency measures under discussion, such as credit notes replacing refunds for package holidays, include strong guarantees or protections so consumers know they are not at risk of losing their money if a travel firm fails.

And while consumers with holidays booked under the current regulations may choose to accept a credit note, their right to claim a refund must not be taken away retrospectively by any changes to the law. The hard-earned money of thousands of holidaymakers – who may be facing difficulty themselves – must not be used as a backdoor bailout of the travel industry, when direct government support is being used in other sectors.

While the current uncertainty continues, airlines must respond swiftly to this fast-moving situation by informing passengers about what is happening with future flights, and show flexibility with rebooking options if a flight has not been cancelled.

Insurers must also heed last week’s warning from the FCA about treating customers fairly and work with the government and travel industry on solutions to tackle the coronavirus crisis, as the public must have confidence that they will be covered when they travel.

Rory Boland, Which? Travel Editor, said: “We’ve heard from hundreds of people who face losing large sums of money because their travel plans have been left in tatters or they have been abandoned abroad and face extortionate bills to get home.

“It’s vital that the government, insurers and the travel sector work together to tackle the huge challenge posed by coronavirus, as the travel industry depends on people having confidence that they will be protected in times of crisis.”

Which? is a non-profit organisation working to make life simpler, fairer and safer for consumers. During the coronavirus crisis, Which? is making a range of news, advice and guides available for free for anyone who needs it at https://www.which.co.uk/news/coronavirus  

Tourism Secretary slams ‘irresponsible behaviour’

Rural Economy and Tourism Secretary Fergus Ewing is urging people to stop travelling to the Highlands and Islands in a bid to avoid the Coronavirus.

People with second homes and campervans have been reportedly travelling in large numbers to the area in recent days.

Mr Ewing said: “I am furious at the reckless and irresponsible behaviour of some people travelling to the Highland and Islands. This has to stop now. Let me be crystal clear, people should not be travelling to rural and island communities full stop. They are endangering lives. Do not travel.

“Panic buying will have a devastating impact on the livelihoods of rural shops and potentially puts unwanted pressure on NHS services in our rural communities.

“The Scottish Government’s advice is that essential travel only should be undertaken. We have been in touch with CalMac and industry leaders to discuss what further measures may be required to deal with this issue.”

Flybe collapses with 2000 job losses

UK airline Flybe has gone into administration, putting 2,000 jobs at risk and affected thousands of travellers, after a bid for fresh financial support failed.

The announcement came in the early hours of this morning. Flybe said the impact of the coronavirus outbreak on demand for air travel was partly to blame for its collapse, but the company has been in deep trouble for some time.

Flybe, which was the UK’s biggest regional airline, has advised customers NOT to travel to the airport unless they have arranged an alternative flight.

The UK Government issued a statement at 3.35 this morning. A spokesperson said: “Following a commercial decision by the company, Flybe has ceased trading.   

“We recognise the impact this will have on Flybe’s passengers and staff. Government staff will be on hand at all affected UK airports to help passengers.

“The vast majority of Flybe routes are served by different transport options, and we have asked bus and train operators to accept Flybe tickets and other airlines to offer reduced rescue fares to ensure passengers can make their journeys as smoothly as possible.

“We know this will be a worrying time for Flybe staff and our Jobcentre Plus Rapid Response Service stands ready to help them find a new job as soon as possible.

“We are working closely with industry to minimise any disruption to routes operated by Flybe, including by looking urgently at how routes not already covered by other airlines can be re-established by the industry.

“Through the reviews of regional connectivity and Airport Passenger Duty we have announced, we will bring forward recommendations to help ensure that the whole of the UK has the connections in place that people rely on.

“Flybe’s financial difficulties were longstanding and well documented and pre-date the outbreak of COVID-19. We are well prepared a potential outbreak and this week we have set out an action plan with details of our response.”

Rory Boland, Which? Travel editor, said: This will be terrible news to Flybe passengers, many of whom were loyal customers and used the airline regularly.

Unlike Thomas Cook’s collapse, most people flying Flybe won’t have Atol protection so the government is unlikely to step in and repatriate those abroad or provide refunds.

Instead passengers with travel insurance should check if their policy includes scheduled operator failure cover.

“Alternately, those who booked tickets costing more than £100 with a credit card will be able to claim from their credit card provider. If the tickets were under £100 or booked with a debit card, passengers can try to use chargeback from their bank or card provider.”

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