FreshAer, the UK company that has been selling flights to Irish consumers for the past week, is operating illegally, according to the Commission for Aviation Regulation (CAR), which yesterday warned that anyone who books the flights would not be protected by travel trade legislation. Barry O'Halloran reports.
FreshAer is not licensed to operate as an airline in this State or anywhere else in Europe. It plans to launch services from Dublin to UK and Spanish destinations on October 1st. The company is negotiating a deal with an Iceland Air subsidiary to provide the services until it gets the necessary certification.
The CAR questioned the company about its plans this week and, on Thursday, warned it to stop advertising here. Yesterday, the CAR issued a public statement saying that it had come to its attention that FreshAer was taking flight bookings and advertising on the Web and in the media.
The statement said: "This company is not licensed by the commission and is therefore acting in contravention of the Irish travel trade legislation. As a consequence, members of the public should be aware that they have no protection under the Irish travel trade legislation if they deal with this company."
As FreshAer is not a licensed airline and is selling flights that will effectively be operated by another carrier, Irish law regards it as a tour operator. However, as it does not have a tour operator's licence, it cannot offer protection to consumers.
Licensed tour operators have a bonding system that compensates consumers in business failures.
Acting as a tour operator without these guarantees can lead to prosecution, according to the CAR, which regulates aviation and the travel industry.
FreshAer spokesman Mr John Lepp last night dismissed the CAR warning as "bunkum" and argued that it was operating outside the Republic's jurisdiction.
"The aeroplanes are on the Icelandic register whilst they are being operated by Iceland Air, therefore it falls outside the Irish jurisdiction," he said.
Mr Lepp said that Iceland Air had all the necessary licences it needed to operate in the Republic and was "inherently bonded" on that basis.
He stated that, under the EU open-skies policy, FreshAer was entitled to sell tickets in the State. "I have written a long letter to Bill Prasifka [the aviation regulator\] outlining this and I am awaiting a reply," he added.
The Iceland Air subsidiary involved, Luftleidir, last night denied a FreshAer statement issued on Wednesday claiming that the necessary agreements to provide the operating licence from October were signed and in place.
A Luftleidir spokesman said talks were progressing in good faith but had not been finalised. It is understood that both sides have agreed a letter of intent. Mr Lepp predicted that the contract would be signed on August 13th. He denied that the company's original statement was inaccurate, as the deal was "as good as done".
Sources yesterday said that Luftleidir was negotiating on the basis that FreshAer acquire either an operating licence or a tour operator's licence by October 1st. Mr Lepp said this was not the case.
The arrangement will involve FreshAer leasing the craft and Luftleidir crewing them. FreshAer is also attempting to buy an operating licence by bidding for a UK company called Cougar Leasing, which is in administration (examinership). Its licence is suspended but would be reactivated if a deal is done, Mr Lepp said.
