Dáil Éireann Debate, Thursday - 27 May 2004
68 Mr. Penrose asked the Minister for Transport his views on the collapse of an air tour operator (details supplied) after just eight days of operation; the measures he plans in order to introduce new bonding arrangements to prevent new operators collapsing overnight and leaving passengers with valid tickets stranded outside Ireland; and if he will make a statement on the matter. [15907/04]
View answerFirst, I wish to express my regret at the sudden collapse of this company and the difficulties that it poses for its customers and staff.
It is important to state at the outset that this company was licensed as a tour operator under the 1982 Transport Act, and was not licensed as an airline, even though its trading name may have given the impression that it was an airline. The licensing of tour operators is a matter for the Commission for Aviation Regulation.
Flyjetgreen was using aircraft chartered from an airline that is a subsidiary of Icelandair called Loftleidir Icelandic. That airline is regulated by the Icelandic authorities. Iceland is part of the European Economic Area and is a full participant in the liberalised European aviation market.
In accordance with the normal requirements to be licensed as a tour operator, Flyjetgreen had lodged a bond with the Commission for Aviation Regulation. That bond is now available to the commission to assist customers who need help as a result of the collapse of the company. It should be emphasised that the bonding arrangements are in place to assist customers of tour operators or travel agents, in the event of a company failing. Unfortunately tour operators and travel agents operate in a very competitive market and it is not unusual for a number of them to collapse from time to time. A bond cannot, in any way, prevent a company from getting into financial difficulties and collapsing, rather what a bond does is to help consumers if a collapse happens.
I have no doubt that the Commission for Aviation Regulation would advise me if at any time it felt that the statutory provisions relating to the licensing and bonding of tour operators needed to be changed. There is currently no Irish legislation in preparation requiring the bonding of airlines. The focus of many airlines is to reduce the cost of flying. An airline bond would push airline prices up. In view of the competitive distortions that that could produce, any such measure would have to be introduced at European level.
