For Immediate Release | Official News Wire for the Travel Industry

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Japan’s first domestic passenger plane since 1960s to challenge Boeing and Airbus

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Mitsubishi Aircraft Corporation, an aviation unit of Japanese industrial giant, is planning to start deliveries of Japan’s first domestically-produced passenger plane since the 1960s as soon as next year.

The 88-passenger jet has a flight range of about 2,000 miles, while a smaller variant can fly up to 76 people for about the same distance. The MRJ (Mitsubishi Regional Jet) made its maiden flight in November 2015 with the first deliveries slated for mid-2020.

Mitsubishi Aircraft Corporation initially planned the first deliveries of the jet for 2008. However, the date was pushed back five times due to production difficulties. Orders for the aircraft that once totaled 474 units from US and Japanese carriers have been reportedly reduced to 407 jets so far.

The Japanese conglomerate, a longtime supplier of aircraft components to Boeing, invested over 600 billion yen ($5.36 billion) into MRJ as of March 2018 with another 200 billion yen ($1.8bn) expected to be pumped into the project by the end of 2020. In October, Mitsubishi announced plans to invest an extra 170 billion yen ($1.5bn) in capital into its aircraft unit, canceling 50 billion yen ($446mn) of the debt owed by the division.

The long-anticipated MRJ, which is designed for local air transportation, may become a peer competitor for such mainstays as Canada’s Bombardier, whose C Series regional planes are marketed as the Airbus A220, after the 2017 acquisition of the unit by the European aerospace giant. The Japanese jet is also expected to provide keen competition to Brazil’s Embraer that announced plans to create a joint venture for Embraer’s airliners in 2018.

The newcomers in the sector of regional air service, such as the Russian Sukhoi Superjet-100 and the Chinese Comac ARJ21, which are currently undergoing test flights, may also challenge Airbus and Boeing.

Mitsubishi is currently involved in legal proceedings with Montreal–based Bombardier. In October, the Canadian aircraft manufacturer filed a lawsuit, accusing the Japanese corporation of stealing secret information and causing Bombardier “to suffer irreparable financial loss.”

Mitsubishi counter-sued, saying that the Canadian aircraft producer had violated antitrust regulations through “a multifaceted scheme to expand its power within the regional jet market by impeding the entrance of a new competing aircraft.”

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US airlines wrongfully reject over 25% of their passengers’ compensation claims

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Consumer rights advocacy group released the results of a new study showing that United States airlines wrongfully reject more than 25% of compensation claims, indicating that more than one in five travelers are being denied up to $700 they are owed by Delta Air Lines, United Airlines, and American Airlines following flight disruptions.

Each year, more and more travelers flying out of the U.S. are eligible to claim compensation under European law EC 261 which covers travelers on European flights. AirHelp found more than 25% of valid claims filed against U.S. airlines for disrupted flights in 2016, 2017 and 2018 were turned away on wrongful grounds by airlines trying to avoid their obligation to travelers.

The travel experience is continuously getting worse due to overtourism. In the U.S., 407,000 travelers are eligible to claim compensation under EC 261 following flight delays and cancellations experienced last year, up from 370,000 the previous year. During the first three months of 2019, more than 75,000 passengers experienced disruptions due to the fault of the airlines that have made them eligible for compensation.

This trend is a small part of the larger issue of airlines mistreating passengers. A survey of travelers found 75% of U.S. travelers feel uninformed about their air passenger rights, and less than 25% of travelers who were on a disrupted flight actually file a claim, despite airlines being required by law to inform passengers of their rights.

How the U.S. Airlines Stack Up

Of the U.S. airlines, Delta Air Lines wrongfully rejects the most claims at a rate of one in three. United Airlines wrongfully rejects nearly one in four claims, and American Airlines rejects one in every five. According to an annual ranking of global airlines and airports, U.S. airlines’ unsurprisingly perform poorly, with each major carrier earning less than seven out of 10 for quality of service.

The most popular U.S. airlines ranked on wrongfully rejected claims rate

United States ranking Global ranking for wrongfully rejected claims rate

Airline Wrongfully rejected claim rate

1 32 Delta Air Lines 32%
2 42 United Airlines 23%
3 44 American Airlines 22%

Data from January 1, 2016 to December 31, 2018

“The bleak picture in the U.S. is just the tip of the iceberg. The volume of legitimate passenger claims being wrongfully rejected by airlines is appalling. Flight delays and cancellations are increasingly heaping chaos on passengers, and travelers are forced to fight airlines for compensation they’re rightfully owed,” says Henrik Zillmer, CEO of AirHelp. “It’s all very well for airlines to say they will compensate passengers who make their claim directly. The reality is that thousands of passengers are continuing to face an impossible struggle to claim the money they’re entitled to. If they are embroiled in a legal battle with an airline, passengers may face costs to hire a lawyer to push through their claim, which can make fighting for compensation virtually impossible.”

U.S. Passenger Rights

U.S. passengers are protected under EC 261 for flights to the EU on an EU airline, and any flight departing from the EU. Cancelled flights, delays of more than three hours, and incidents of denied boarding are covered under EC 261, as long as the disruption was not caused by extraordinary circumstances such as weather, sabotage or political unrest. Eligible passengers may be entitled to financial compensation of up to $700 per person, and can file claims up to three years after the incident occurs.

Travelers have fewer protections on domestic U.S. flights, but can claim up to $1,350 in compensation for denied boarding due to overbooking, depending on the value of the ticket fare and ultimate delay in arrival to their final destination

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Gavel slams: Airbnb not eligible for privileged tax treatment

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A report released on behalf of the American Hotel and Lodging Association (AHLA) calls on state and local government leaders to reject Airbnb’s future pursuit of voluntary collection agreements (VCAs) and look to the Wayfair decision as a pathway to cancel current VCA agreements and bring Airbnb up to code with current industry tax standards and regulations.

AHLA released a new report on National Tax Day, conducted by former Director of the Montana Revenue Department Dan Bucks, which clearly demonstrates why the Supreme Court’s Wayfair vs. South Dakota decision last year eliminates the need for state and localities to enter into “voluntary collection agreements” (VCAs) with Airbnb and provides the legal framework and incentive to tax Airbnb like every other U.S. online business now.

“Airbnb no longer qualifies—if it ever did—for privileged treatment by tax agencies as a ‘voluntary collector,’” states Bucks in the report. “This treatment gives Airbnb an unfair advantage in the marketplace by creating a tax and regulatory haven for Airbnb lodging operators. Post-Wayfair, Airbnb’s “voluntary agreements” are now a relic of a past legal premise that no longer exists.”

Bucks urges government leaders to begin the process of terminating existing “voluntary” tax agreements with Airbnb in coordination with state adoption of “general marketplace provider” legislation. Bucks went on to say that disparities between the tax treatment of Airbnb and other online businesses pose a legal risk to states and localities.

“Airbnb has been making back-room deals and strong-arming state and local jurisdictions into ‘voluntary’ tax deals with no transparency, oversight or auditing capability for years,” stated Chip Rogers, President and CEO at AHLA. “Airbnb, and other short term rental platforms need to abide by the same rules as all other law-abiding, tax-paying businesses in the industry.”

AHLA urges state and local government leaders to terminate Airbnb’s voluntary tax deals and instead institute a tax policy that will collect taxes from Airbnb and its operators to ensure an even playing field and transparency for taxpayers. In San Francisco, home of Airbnb’s corporate headquarters, the company agreed to pay back taxes and collect city taxes from its hosts.  AHLA urges other states and localities to follow suit.

“Airbnb’s secret tax agreements are hurting communities across America by shortchanging their schools, infrastructure, and other public services” stated Rogers. “Airbnb’s special treatment needs to end.”

The American Hotel and Lodging Association (AHLA) is the singular voice representing every segment of the hotel industry including major chains, independent hotels, management companies, REIT’s, bed and breakfasts, industry partners and more.

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UK Foreign Office urged to update UAE travel warnings

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British legal group Detained in Dubai has urged the UK Foreign and Commonwealth Office (FCO) to update its UAE travel warnings to UK tourists in an open letter penned by the organization’s head, Radha Stirling.

“We have frequently called upon the FCO to provide more accurate information to Britons about the many risks they face in the UAE which the current advisory does not cover,” Stirling said. “It is simply not enough to warn people to obey the laws and customs, when very often the legal system itself poses a threat even to law-abiding tourists who may be subjected to false arrests, fabricated cases, forced confessions, torture, and lack of representation.”

Stirling’s letter specifically highlights the dangers inherent in the UAE’s Cybercrime laws, under which Laleh Shahravesh was prosecuted. In the letter to Permanent Under Secretary of State Sir Simon McDonald, head of the FCO, Stirling said:

“This warning is insufficient in light of the Shahravesh case, insofar as it does not explain that a British citizen can, in fact, be prosecuted if they ever visit the UAE, for posting material online in the UK which anyone inside the UAE may deem offensive.

It is vital for British citizens to be aware before traveling to the UAE that their entire social media history must adhere to UAE standards of acceptable content before they risk entering the country.”

The Cybercrime laws, she says, are irresponsibly vague and can easily be misapplied, as in Laleh’s case, in matters that have nothing to do with public endangerment, hate speech, or incitement to violence. “UAE Cybercrime laws subordinate the police, prosecutors, and courts to the tyranny of individual egos,” Stirling explained.

“If anyone in the UAE is offended by someone’s online content, even if they do not know that person, and even if that person posted the content in a different country; a criminal case can be made and an arrest warrant issued. It is an enormous threat to free speech well beyond the borders of the UAE.”

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WikiLeaks founder Assange arrested in London after Ecuador axes asylum deal

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WikiLeaks founder Julian Assange has been dragged out of the Ecuadorian Embassy in London where he has spent the last seven years. That’s after Ecuador’s president Moreno withdrew asylum.

That’s only a day after WikiLeaks Editor-in-Chief Kristinn Hrafnsson claimed that an extensive spying operation was conducted against Assange in the Ecuadorian Embassy. During an explosive media conference Hrafnsson alleged that the operation was designed to get Assange extradited.

Assange’s relationship with Ecuadorian officials appeared increasingly strained since the current president came to power in the Latin American country in 2017. His internet connection was cut off in March of last year, with officials saying the move was to stop Assange from “interfering in the affairs of other sovereign states.”

Assange garnered massive international attention in 2010 when WikiLeaks released classified US military footage.

The footage, as well as US war logs from Iraq and Afghanistan and more than 200,000 diplomatic cables, were leaked to the site by US Army soldier Chelsea Manning. She was tried by a US tribunal and sentenced to 35 years in jail for disclosing the materials.

Manning was pardoned by outgoing President Barack Obama in 2017 after spending seven years in US custody. She is currently being held again in a US jail for refusing to testify before a secret grand jury in a case apparently related to WikiLeaks.

Assange’s seven-year stay at the Ecuadorian Embassy was motivated by his concern that he may face similarly harsh prosecution by the US for his role in publishing troves of classified US documents over the years.

His legal troubles stem from an accusation by two women in Sweden, with both claiming they had a sexual encounter with Assange that was not fully consensual. Assange said the allegations were false. Nevertheless, they yielded to the Swedish authorities who sought his extradition from the UK on “suspicion of rape, three cases of sexual abuse and unlawful compulsion.”

In December 2010, he was arrested in the UK under a European Arrest Warrant and spent time in Wandsworth Prison before being released on bail and put under house arrest.

His attempt to fight extradition ultimately failed. In 2012, he skipped bail and fled to the Ecuadorian Embassy, which extended him protection from arrest by the British authorities. Quito gave him political asylum and later Ecuadorian citizenship.

Assange spent the following years stranded at the diplomatic compound, only making sporadic appearances at the embassy window and in interviews conducted inside.

Assange argued that his avoidance of European law enforcement was necessary to protect him from extradition to the US, where then-Attorney General Jeff Sessions said that arresting him is a “priority.” WikiLeaks was branded a “non-state hostile intelligence service” by then-CIA head Mike Pompeo in 2017.

The US government has been tight-lipped on whether Assange would face indictment over the dissemination of classified material. In November 2018, the existence of a secret indictment targeting Assange was seemingly unintentionally confirmed in a US court filing for an unrelated case.

WikiLeaks is responsible for publishing thousands of documents with sensitive information from many countries. Those include the 2003 Standard Operating Procedures manual for Guantanamo Bay, Cuba. The agency has also released documents on Scientology, one tranche referred to as “secret bibles” from the religion founded by L. Ron Hubbard.

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AIDS/HIV research supported by design community

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Members of the Design Industries have supported AIDS research since 1984 through the Design Industries Foundation Fighting Aids (DIFFA), a 501 (c)(3) charitable organization incorporated in New York State.

DIFFA started as a grassroots organization and today is a national foundation headquartered in New York City with chapters in Chicago, Dallas, San Francisco and the Pacific Northwest. The organization also partners with gift and home industries and other organizations throughout the USA. DIFFA and its partners have raised over $44 million for hundreds of HIV/AIDS organizations nationwide providing education and prevention programs that run the gamut from condom distribution and needle exchanges to protection of legal rights and security for people living with HIV/AIDS.

Every March, DIFFA invites local and international designers to take raw space and morph it into a showcase of WOW dining table-top environments. It is co-located with the Architectural Digest Design Show and thousands of designers, architects, buyers, sellers, media and design educators support this unique event held at Pier 92 in Manhattan.

Dining by Design attracts over 40,000 guests who view dining installations by more than 30 designers, architects, manufacturers and brands. Designers include: Black Designs + Artists Guild, Sheila Bridges, Mikel Welch, Stacy Garcia, Damour Drake, Kingston Design Connection, Joshua David Home, Inc. Architecture, Lucina Loya, Patrick Mele for Benjamin Moore, Roric Tobin for Modern Luxury and David Scott Interiors for Roche Bobois and Stonehill Taylor for Ultrafabrics.

Curated Design-Inspired Table-Scapes

  • Patrick Mele for Benjamin Moore

This table-scape celebrates glamour from an earlier decade and another world. It is presented in a contemporary format with a mélange of berry, cream, gold and silver giving the space an airy and spring-like ambiance that enhances the trompe l’oeil details and highlights its creativity.

  • Rockwell Group

This table-scape is inspired by The Peacock Room, James McNeill Whistler’s masterpiece of interior decorative art. The tableau features digital wallcovering and a custom handmade peacock-feather tablecloth, creating an abstract, modern interpretation of luxuriously – decadent space.

  • Stonehill Taylor for Ultrafabrics

“Journey” links nearly 4 decades of research and human achievement in the fight against AIDS. The colors and patterns suggest the body and being, while the swirling, layered centerpiece addresses hope and optimism thanks to ongoing advances in science and technology.

  • Mckenzie Liautaud/Robert Verdi

Inspired by water and the nexus between the river and the sea, jewelry designer @Mckenziel and tastemaker @RobertVerdi present a table-scape that features pearls and their origin. Dinner guests are seated on pearl-like stools at a table set with silver and crystal under the stars.

Auction (Curated)

Dining by Design features a silent auction that presents innovative products, original works of art and unusual, quirky experiences.

  • Infiore Floor Lamp by Estiluz

The lamp was designed by the Lagrania Studio. Fiore means flower in Italian, and this is an original elegant lamp that opens it petals and shines it unique light wherever it is placed. The bi-injected polycarbonate petals provide a two-color lighting effect. A halogen bulb is hidden within and is protected by satinized glass that delivers a warm, pleasant light that presents different tones and color effects.

  • Izmir Filo Table Lamp

This playful table lamp was designed by Andrea Anastasio for Foscarini. The lamp and its cord land casually on a tripod, and on the cord are large, effective glass beads. The Filo Lamp is an artistic masterpiece that will be admired forever.

For additional information: diffa.org

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The Internet knows you are planning a vacation and will charge you more

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People are starting to plan their summer vacation, and for many, the planning process itself is the beginning of a well-deserved rest. However, it does cause frustration when after a couple of price checks on the Internet, one starts to notice how flight ticket and apartment booking quotes take an upward trend. Such behavior is called price discrimination and is a prevalent tactic across the travel industry, but there are ways to protect yourself from it.

Intuitively unfair, the concept of price discrimination (if not based on race, religion or national origin) is legal and can take many forms. Its general principle is that potential customers get to see different prices of the same product or service based on their willingness to pay as perceived by the seller.

“Many online retailers who use special algorithms to create an illusion of high demand and an increasing price. Let’s say, the quotes for all the hotel rooms you checked yesterday have increased only to encourage you to make a fast decision to book,” explains Naomi Hodges, Cybersecurity Advisor at Surfshark. “The same goes for flight tickets and car rentals so that excellent offer you found an hour ago might have deteriorated to ‘it’s still ok, but I have to hurry’ at your second check.”

Various online businesses are using personalized pricing techniques to manipulate people’s emotions. The leaders in this field, for example, Uber, hire behavioral economists who help to craft the logic of algorithms of differential pricing.

The core ingredient to make the algorithms work is your online data which is acquired when websites insert cookies into your browser and get to know your IP address.

“Such information can reveal where you live, how new or expensive device you use, which websites you visit, what are you interested in, whether you are an easy spender or not, and much more,” says Naomi Hodges.

When your data is being used for personalized pricing, the car rental might become expensive if you already booked a flight to some destination. The same goes for hotel and domestic flight booking.

The price manipulation can go even further by knowing that you are a user of a brand-new iPhone model which indicates higher purchasing power and in turn – your willingness to pay more than other customers.

How to avoid price discrimination?

Naomi Hodges reveals that it is rather easy to check if you are being differentiated from other potential travelers. Taking a few steps can help you save a sum worth a couple of nights at a great hotel or even a return flight ticket if you are an occasional traveler.

If you notice a higher flight ticket/car rental/hotel booking price than before, relax and follow these tips:

  1. Clear your recent digital footprint. You can do that by clearing your browser cache, history, and cookies in the browser settings.
  2. Turn on a virtual private network (VPN) app. This trick can help you change your location by giving you a different IP address. In many cases prices are based on the device’s location, so you can avoid higher prices simply by pretending that you are in another country. Check different countries to see how people there
  3. Turn on Incognito Mode (Chrome), Private Mode (Safari) or Private Window (Firefox) in your browser. This step will allow you to browse cookie-less.
  4. Check the prices using a different device. Differentiating between desktop and mobile users is a common practice.
  5. Change the top-level domain (.com, co.uk, .fr, .net) to a different one. For example, flights4u.com might display different prices than flights4u.de.

Best results can be achieved if all these tips are used simultaneously.

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Xtra Aerospace in Florida also responsible for Boeing 737 Max crash?

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Our purpose is to ensure each flight is safe and cost-effective every day. This is the message on the Xtra Aerospace website. The Xtra Aerospace states their maintenance division can provide optimal maintenance to all of the unique aviation needs.

Xtra Aerospace may have been very much off on this goal when in Indonesia a Lion Air Boeing 737 MAX crashed after it was repaired in a U.S. aircraft maintenance facility and the so-called angle-of-attack sensor was replaced. This sensor sent erroneous signals causing repeated nose-down movements on the Oct. 29 flight that pilots struggled with until the Boeing Max plunged into the Java Sea. Everyone on board, 189 people were killed.

XTRA Aerospace is an FAA/EASA/ANAC certified repair station located in Miramar, Florida, USA.

Documents obtained by Bloomberg News show the repair station, XTRA Aerospace Inc. in Miramar, Fla., had worked on the sensor. It was later installed on the Lion Air plane on Oct. 28 in Bali, after pilots had reported problems with instruments displaying speed and altitude. There’s no indication the Florida shop did maintenance on the Ethiopian jet’s device, according to Bloomberg.

Xtra Aerospace states: ” We specialize in the repair of instruments, radio & mechanical/electrical accessories. XTRA offers extensive capabilities servicing the A300, A320 family/A330/A340 and Boeing 737 thru 777. We are proud to serve the world’s top airlines and suppliers with one goal… complete customer satisfaction.

XTRA Aerospace welcomes the U.S. Government. XTRA is DD2345 certified to obtain military critical technical data. XTRA’s cage code is 5FWE2 and we look forward to helping you with all your sourcing and repair needs.”

U.S. teams assisting the Indonesian investigation reviewed the work by the company to ensure that there weren’t additional angle-of-attack sensors in the supply chain with defects, said a person familiar with the work. They didn’t find any evidence of systemic issues on other sensors the company may have worked on.

Bloomberg states in their article:

“Much of the concern by regulators and lawmakers after the Lion Air and Ethiopian Airlines crashes has focused on Boeing’s design of the Maneuvering Characteristics Augmentation System, or MCAS, which was programmed to push down a plane’s nose to help prevent aerodynamic stalls in some situations. But the preliminary report by Indonesia on the Lion Air crash shows that maintenance and pilot actions are also being reviewed.

It’s common for licensed repair stations to overhaul older parts so they can be resold, said John Goglia, a former member of the NTSB who earlier worked as an airline mechanic. Airlines can save money buying used parts and U.S. regulations require that the parts meet legal standards, Goglia said.

If the sensor was repaired at XTRA Aerospace, “it would have to go through what the manual says to overhaul it,” he said. “That means all the steps.”

The Indonesian preliminary report doesn’t say what went wrong with the device but indicates that the plane’s maintenance is a subject of the investigation.”

The Ethiopian Airlines 737 Max that crashed on March 10 also apparently had issues with the same type of sensor, which triggered a safety system on the plane that was driving down the plane’s nose, according to people familiar with the accident. In that case, investigators are still attempting to locate one of the sensors to help determine why it malfunctioned.

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Developing safety and security for children during travel

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Safety and security are always a concern of the travel industry, no matter who the traveler might be. A major issue when dealing with children is their safety and security. In the case of young travelers, the situation becomes even more difficult and emotional. There are many reasons for this heightened need for safety and security.  Among these are:

1)   Children are perceived to be more vulnerable

2)    Most people tend to be highly protective of children

3)    The legal ramifications of injury to a child may be even more severe

4)    Children evoke emotional reactions, and these emotions may crowd out rational thinking

Child safety and security tends to become the responsibility of three groupings:

1)   The child or young adult

2)   The parent of guardian of the child

3)   The host institution

The following is a partial list of precautions that all of us need to take when dealing with the child segment of the travel market. To help provide a safer ambiance for family vacations, consider some of the following.

Just as in the case of marketing efforts, tourism security efforts need to segment the market into at least four age brackets. Some suggested brackets might be: (1) new borns-2 years, (2) 3-7 years, (3) 7-12 years, and (4) teenagers until the legal age of 18. The essential issue is to realize that while both a 17 year old and a 2 year old are legally both minors, from a safety, security, and sociological standard, they operate in a very different ways and require very different guidelines. To help maintain these various groups safe and sound Tourism Tidbits offers the following suggestions. It should be noted that these are only a few suggestions of the many that are needed, and final decisions should be made by an onsite professional.

– Keep video cameras going. In case a child is lost (or Heaven forbid kidnapped), a video camera may be an excellent tool in locating the child.

– In places where adults and children mix, consider the use of ID bracelets being offered at the time of ticket purchase. You can use the ID bracelet either as a check-in/check-out device or give them away as a souvenir. In either case, should the child be lost, the security agent will have a name and phone number to call.  It is a good idea to place both the local and home number on the bracelet.

– In areas that have special young people’s sections, make sure that it is only children who enter. Adults should not be allowed into a children’s section. If an adult is needed there in case of an emergency, he/she should only be allowed to enter accompanied by a trained security agent.

– Develop policies on older children or unaccompanied minors. Younger children may be less of a problem than older children (12-17 years of age). These are guests who are legally still minors but can often do a great deal of damage or may demand that they be treated as adults even though such treatment is against the law. Make sure that all personnel are familiar with your business regarding minors’ safety and behavior of and with minors. Employees need to know:

–      policies and laws that specifically deal with people under the legal age of maturity

–      how to handle an angry or non-compliant minor

–      how to handle someone who may be making a scene

–      -when to actively intervene or call for additional help

–      how to check IDs without offense – a person’s ID is checked and questioned as to the whereabouts of his/her parents

In the hour before closing, it is very important to make sure that unsupervised young people are accounted for. In cases where the young person falsely believes that he/she is grown-up, ask for both a driver’s license and a social security number.

– Be aware of child abandonment/abuse. A form of child abuse is abandonment of a child. Train personnel to be on the lookout for all forms of child abuse. For example, if an adult is hanging around other people’s children asking for that person’s ID, turn security cameras on the person and attempt to get the license number of the vehicle being driven. The more information you have, the easier it will be for the police to act should there be a problem. Do not assume that a child abuser will return the next day. It may be weeks or months, or never, until that person returns.

– Develop cooperative information centers. Work with local police departments, hotel associations, and other attractions so that information can be passed between security departments rapidly and easily.  Remember people judge a locale on just one negative incident. When something goes wrong in one place, it can affect the entire local tourism community.

– Be careful of safety concerns.  Do a safety analysis; look for and correct such things as: glass doors against which inadvertently a child may run into, issues of food safety, or balconies over which a child may climb and jump.

Dr. Peter Tarlow is part of the Safer Travel Program by eTN. More information
www.safertravel.com 

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Peacock Aviation taking legal action against Gambia carrier

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Nigerian Peacock Aviation company that worked as General Sales Agency (GSA) for the Gambian Mid Africa Aviation Company Ltd. that traded in Nigeria under the name Fly Mid Africa has petitioned the Gambian Government over the non-payment of passengers’ air ticket refunds before it exited Nigeria.

The petition which was dated February 12, 2019 and also copied to the Nigerian High Commission in the Gambia through its legal counsel Abrahams Ayobami  & Co. stated: “We are Solicitors to Peacock Aviation and Allied Services Ltd. [henceforth referred to as ‘Our Client’], a company duly registered under the Laws of the Federal Republic of Nigeria with its registered address situate at No. 19, Mojidi Street, Off Toyin Street, Ikeja, Lagos State, Nigeria and on its instructions and behalf we write you this petition.

“Our client was appointed the General Sales Agent [GSA] of ‘MID AFRICA AVIATION LTD’ trading under the name ‘FLY MID AFRICA’ on 24th April 2017 when the said company commenced its Airline operations in Nigeria.”

According to the counsel, “Our client, among other things was to manage and operate a city office to sell tickets to customers, a task our client was able to achieve within a record time of four weeks of operation.”

The petition stated further that, “Upon commencement of operations of the Airline, the cash sales in our client’s custody was used to take care of operation fees such as Air Landing, Parking Fees, Passengers’ Service Charges, Nigerian Civil Aviation Authority [NCAA] Fees, Catering, and Crew Hotel Accommodations.”

“With the above looking promising, the Airline ran into issues with their flight schedules which led to the cancellation of February and March 2018 flights and finally suspension of operations until further notice.”

While the suspension was still on, the airline got instructions to commence refund of issued tickets to customers which was carried out until exhaustion of all the funds at hand by the GSA according to its counsel.

“Our client then made a request for funds to be released to liquidate the outstanding refunds but same has remained hitherto unmet by the management of Fly Mid Africa Airlines for over one year now.”

The petition also has it that, there is still an outstanding refund of about Eleven million one hundred and fifty six thousand, six hundred and one naira fifty one kobo [₦11,156,601.51] and our client’s unpaid International Air Transport Association [IATA]/Billing Settlement Plan [BSP] Sales Overriding Commission of about Seven Million Naira [₦7,000,000] only with customers showing their grievances in all manners including laying siege to the GSA business premises and disrupting its activities.

Meanwhile, some have even threatened to commence legal actions against it; more so as customers are aware that tickets issued on the IATA BSP platform have been refunded and therefore query the reason for non-payment of their refunds.

Despite several email communications between our client and the said Fly Mid Africa Airline with reconciliation and adjustment of account settled between the parties, still the Airline has refused to release funds to pay innocent travelers their well-deserved refund even after leaving them stranded, disappointed and uncompensated, according to Chief Segun Phillips, Group Executive Chairman, Peacock Travels and Tours Limited.

However, in a bid to settle the matter amicably, the GSA wrote to the Nigerian High Commission in The Gambia to wade into the matter but was referred back to the Gambian Commission in Abuja as the right channel for resolving such issue.

As it stands, there is the total outstanding refund of about Eighteen million one hundred and fifty-six thousand six hundred and one naira fifty-one kobo [₦18,156,601.51] amounting to tickets refunds and GSA unpaid IATA BSP Sales Overriding.

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