Dear Members and Industry Colleagues
Welcome to our latest newsletter, the last one of the calendar year! In this edition, there is a lot to talk about, as seen by this list:
- Changes at BAR UK
- Subscriptions
- Consultations
- Members' feedback
- Terminal 5 at Heathrow
- Activity Report
- The next General Meeting
Management moves at some airlines have also affected the Board of BAR UK. They are best summarized as follows:
| Chairman | Raja Segran (Singapore Airlines), succeeding Mike Carter (Continental) who has retired. |
| Vice Chairman | Robert Atkinson (Air Canada) succeeding Raja Segran. |
| New Board Members | Vincent Knoops (KLM/Northwest) and Tony Cowles (Air Jamaica) |
In addition to Board changes, the Chief Executive changed as well. Peter North, who provided an excellent service to BAR UK for the last nine years, retired at the end of September. After a short handover period, he was replaced by Mike Carrivick, whose details were announced in a Press Release.
Subscription levels were discussed at length at the last Board meeting, taking into account last year's, and this year's, financial performances, where accumulated losses have strained the cash reserves. The main causes this year have been extensive one-off costs associated with legal and lease arrangements, plus the ever-increasing rates of professional indemnity insurance.
Measures have already been implemented that have saved over £10k on outgoings, but that alone does not generate the adequate operating reserves that are required to run the organisation.
Having seen the value that BAR UK brings to its members, and the value members gain by not having to undertake those activities themselves, increased subscriptions were recommended to the membership, who have voted to accept them with a margin of 91 for and one against. Over the previous two-year period, this represents an annual average increase of just 3.5%.
Subscriptions for 2005 will be:
| On-line member | GBP 1040 + vat |
| Off-Line member | GBP 520 + vat |
| Active Associate | GBP 520 + vat |
| Associate | GBP 320 + vat |
Notes:
- Members joining for the first time will be subject to a GBP30 joining fee (to cover one-off website costs).
- Subscriptions paid from an overseas bank will require an additional GBP15 clearance fee.
BAR UK has been very active in responding to various consultation documents, about which members have been regularly updated, with details posted on the members pages of www.bar-uk.org. These include:
- Night Flying
- Denied Boarding and update news
- Gatwick Express
- Consumer protection
- Ring Fencing
- Liberal Democrat consultation
This is a two-stage process, for which the first stage was completed in early November. It concentrated on the acceptance of the current noise rating system of aircraft (with which BAR UK agreed) and several questions linked to the second stage. That will not commence until Spring 2005.
EU Regulations concerning Denied Boarding, Flight Cancellations, and delays of 2 hours or more, come into effect on 17 February 2005. The consultation was aimed at how the UK Government planned to implement those Regulations. The implementation plans were seen as far too complex, over and above what the EC was requiring, and impossible to implement.
BAR UK responded in a strong manner to the Department for Transport, and separately to the Secretary of State for Transport, because the law is a criminal one for which airlines and their staff could be taken to court.
Update: I am pleased to advise that our letter to the Secretary of State, and others to him, are causing the implementation proposals to be reviewed. Consequently, a further round of consultation will now take place.
The Strategic Rail Authority (SRA) is attempting to solve overcrowding of trains on the Brighton-London route, which happens to go through Gatwick Airport station. Their proposals would see the elimination of dedicated trains, platforms and services that are provided today, Instead a slightly increased schedule would mean using standard commuter trains that have no proper baggage storage, and which would be very full with commuters by the time they stop at Gatwick on the way to London. Even so, the SRA wishes to retain a 50% premium on the fares.
BAR UK believes that it is totally illogical to fragment a very good example of transport integration, and that several safety issues arise as well as consumer service standards dropping.
We have submitted our response to the SRA, written our objections directly to the Secretary of State for Transport, and been in contact with Gatwick Express, BAA, and the Press with our concerns.
Our Members Only pages on the website contain all the relevant documents.
Briefly, the UK's CAA would like to see flight-only purchases have a mandatory system whereby consumers are protected in the event of the failure of an airline. Their arguments are complex, including the fact that many consumers believe they are protected by the CAA's ATOL scheme when, in fact, they are not. Of special concern are bookings transacted over the internet, and involve all airlines operating out of the UK, not just scheduled carriers.
On behalf of its members, BAR UK is responding that clarification is required but that mandatory protection is not. Instead, advice to buy relevant insurance could be provided.
Another meeting with the Department for Transport is scheduled for 14 December, at which a voluntary code of conduct by airlines will be explored.
A consultation document was received in respect of protecting slots (known as 'ring fencing') at Heathrow, Gatwick and Stansted for UK domestic services from London to destinations in economically-disadvantaged areas.
BAR UK has responded it would object to such 'ring fencing' at these airports. It would deny a valuable resource for international trade at Heathrow and Gatwick, when adequate slots are still available at Stansted, London City and London Luton airports.
The Liberal Democrat party issued an aviation consultation paper in which it made clear it believed that aviation was not doing enough to combat environmental issues. It seemed to disregard the fact that alternative forms of transport have environmental impacts.
The paper contained many hypothetical questions and few proposals. However, it did propose the replacement of APD with an aircraft departure tax, and suggested that fuel should be taxed, either for all flights or possibly for all intra-European flights. Emissions trading was also debated within the document.
At least one member is known to have provided a very comprehensive response detailing the huge efficiencies made by aviation over many years.
BAR UK provided a more general response, posted on the Members Only pages, and has requested a meeting to follow up its concerns.
Feedback is being obtained from members on two issues:
- Which airports do you operate from?
There is a natural bias towards London in our activities, but it is important to remember the many other UK airports to which members operate. - What type of speakers would you like to hear at the General meetings? Some verbal feedback had been received that issues more relevant to delegates' day-to-day roles would be welcome.
Although Terminal 5 is not due to open for a few years, the effect of relocating other airlines is already becoming a hot topic.
The BAA have committed to talk to all affected airlines, but the concerns being expressed by some members include:
- Unilateral negotiations
- Loss of transfer traffic
- Baggage transfers to T5
- A reduced Piccadilly Line underground service to T4
- The monetary loss on airline lounges
- The costs of moving
- Introduction of Airbus A380
For its part, BAR UK will investigate if BAA will come and address one of our General meetings, offering the opportunity to collectively express matters.
As well as the various consultation responses, the new Chief Executive has made it a point to visit as many members as possible. To date that includes 25 airlines and three Associates.
Some more visits are scheduled in the new year, but more can be accomplished. If you want to see him, please contact Mike Carrivick
Thursday 27 January 2005: Institute of Directors, Pall Mall, London SW1
09.30 for 10.00
Coffees sponsored by Beaumont and Son - BAR UK Associate Member
Guest speakers:
David McMillan - Director General Civil Aviation - Department for Transport
Beaumont and Son - addressing some legal issues affecting aviation matters