Travel agents 'shocked' by damages decision
Travel agents are "shocked" at a court decision taken on Monday ordering an agency to compensate travellers who lost a day of a cruise because of an Air Malta flight delay, Federated Association of Travel and Tourism Agents president Iain Tonna told...
Travel agents are "shocked" at a court decision taken on Monday ordering an agency to compensate travellers who lost a day of a cruise because of an Air Malta flight delay, Federated Association of Travel and Tourism Agents president Iain Tonna told The Times Business.
The issue could create a precedent and is to be the main item on the agenda at FATTA's council meeting next Thursday.
The Appeals Court confirmed rulings by the Consumer Claims Tribunal and ordered Mondial Travel Agency to pay five travellers €1,500 in damages after they missed the Kiel Canal leg of a 12-day Scandinavian and Baltic cruise in August 2007.
Mondial, which is not a FATTA member, explained that the aircraft had struck birds in Bulgaria and its return to Malta was delayed by nine hours, further delaying its departure to London Gatwick with the group.
"In principle, a travel agent being sued for an airline's operational issue is objectionable," Mr Tonna said. "Travel agents have no control over airlines' operations. There could be two consequences now: we will either see travel agents costing the risk of being sued and reflecting it in pricing, or there will be a proliferation of disclaimers in consumer contracts."
"We are very disappointed with the decision," Mondial Travel Agency general manager Richard Magri told The Times Business. "We understand the clients' position too. However, we went to great lengths to arrange for them to fly to Germany so that they could join the cruise during a 15-minute window as it left the lock at the Kiel Canal. We are still considering our options and speaking to our lawyers.
"We do encourage clients to fly a day earlier to safeguard against delays but many are reluctant to incur the expense of an extra night. We could cost the risk of being sued and passing it on to the customer, but in that way we would be out-priced. So really, there is nothing much we can do but continue to take the risk of being sued for flight delays. Customers know the law is on their side. Maybe tribunal laws should be reviewed."
"The little profit we made on this tour we have lost," Mr Magri added. "We are agents of the airline, the coach company and the cruise line. It was not our aircraft or our ship."
The issue could create a precedent and is to be the main item on the agenda at FATTA's council meeting next Thursday.
The Appeals Court confirmed rulings by the Consumer Claims Tribunal and ordered Mondial Travel Agency to pay five travellers €1,500 in damages after they missed the Kiel Canal leg of a 12-day Scandinavian and Baltic cruise in August 2007.
Mondial, which is not a FATTA member, explained that the aircraft had struck birds in Bulgaria and its return to Malta was delayed by nine hours, further delaying its departure to London Gatwick with the group.
"In principle, a travel agent being sued for an airline's operational issue is objectionable," Mr Tonna said. "Travel agents have no control over airlines' operations. There could be two consequences now: we will either see travel agents costing the risk of being sued and reflecting it in pricing, or there will be a proliferation of disclaimers in consumer contracts."
"We are very disappointed with the decision," Mondial Travel Agency general manager Richard Magri told The Times Business. "We understand the clients' position too. However, we went to great lengths to arrange for them to fly to Germany so that they could join the cruise during a 15-minute window as it left the lock at the Kiel Canal. We are still considering our options and speaking to our lawyers.
"We do encourage clients to fly a day earlier to safeguard against delays but many are reluctant to incur the expense of an extra night. We could cost the risk of being sued and passing it on to the customer, but in that way we would be out-priced. So really, there is nothing much we can do but continue to take the risk of being sued for flight delays. Customers know the law is on their side. Maybe tribunal laws should be reviewed."
"The little profit we made on this tour we have lost," Mr Magri added. "We are agents of the airline, the coach company and the cruise line. It was not our aircraft or our ship."