Consumer champion comments on Competition Commission’s report
March 26, 2009Well, there were no surprises last week contained in the Competition Commission’s final report on the break-up of BAA (as reported by Cheapflights). Perhaps it is also not surprising that the CC’s report contained recommendations which closely echoed the Department for Transport’s proposals the previous week for the Civil Aviation Authority. It is proposed among other things that the CAA will be refocused "on the interests of consumers rather than airlines."
Earlier this year we also had the Government’s announcement to allow the third Heathrow runway to go ahead as well as the Stansted second runway. All in all the biggest shake-up for aviation in 20 years which looks dangerously close to being a “joined-up” strategy for the updating of UK aviation’s infrastructure and it’s regulation.
One fly in the ointment though is the Orwellian e-Borders Agency which is about to flex its muscles. e-Borders is the government’s new way of protecting the UK’s border by tracking and storing sensitive information about trips made abroad. Every trip we now make will require the submission of rafts of personal data 24 hours in advance which will be kept for up to ten years. Apart from any civil liberties considerations, it appears that while individuals will be liable for £5000 fines if they do not conform to e-Borders requirements, carriers will also face extra costs in ensuring their compliance and reporting responsibilities are met. That will mean carriers’ operating costs will rise and inevitably be passed on leaving consumers to suffer financially as a result – and that is apart from potential £5000 fines.
It was ironic then, that when announcing the CAA proposals earlier this month, Geoff Hoon was talking about improving "the traveller's end-to-end experience". On the one hand the Government is trying to make our vital aviation industry fit for purpose in the 21st century by addressing the lack of capacity and proper airport facilities. On the other, it is making spontaneous travel abroad impossible and making planned trips, which will require pre-submission of very personal data, which is both intimidating and restrictive for consumers. The scenario is regrettably reminiscent of the travel restrictions imposed by past European totalitarian societies. It is certainly not conducive to improving "the traveller's end-to-end experience".
As a consumer champion, Cheapflights welcomes any initiative that seeks to improve consumers’ travel conditions. Disposal of three BAA airports should improve competition and benefit consumers accordingly. Also, the CAA proposals look well intentioned and will enable the CAA to react with far greater flexibility and speed, whenever problems with Airport service quality are identified. Increased runway capacity in the South East will also be good for consumers.
However, the travel industry, like the rest of the economy is facing huge problems. Passenger numbers have dropped sharply – Gatwick by nearly 13% in January and February 2009. It is therefore no wonder travel bosses are now demanding a government U-turn on the planned huge hike in air passenger duty which will add up to £170 to long-haul fares. It is surely time to do so when the new UK border regulations and new investment and regulatory requirements facing the industry have the potential to drive up industry costs and create a vicious circle of rising costs and declining passengers.
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