THE STATE’S largest tour operator says it is operating as normal despite the fact that its licence expired over a week ago.
A spokesman said Budget Travel was taking holiday bookings and all passengers would be protected by the normal travel bond.
The company yesterday took High Court proceedings aimed at forcing the Commission for Aviation Regulation to renew its licence. A dispute over what Budget claims are “unreasonable and unlawful preconditions” for renewal of its licence was adjourned to Monday while the sides try to resolve the matter.
Budget claimed in court that the regulator’s actions, including failure to accede to its request to return some €4 million of its €11 million bond given its reduced turnover, are greatly hampering the company’s ability to carry on its business and jeopardising the livelihoods of its 189 employees.
A spokesman for the commission said all bookings made with Budget up to the expiry of its licence at the end of October were fully protected by its bond, as were bookings made since the start of the court case yesterday.
He said that, as requested by the commission, Budget had ceased taking new bookings from last Monday, but resumed after the court appeal yesterday.
Budget managing director Eugene Corcoran, a 25-year veteran of the travel sector, yesterday announced his retirement. He has been replaced by Eileen O’Sullivan, the company’s finance director. The company recently closed 14 of its 31 stores in a cost-cutting exercise caused by a dramatic fall-off in business. Two years ago, Budget sold more than 300,000 seats; next year it is expecting to sell just 130,000.
In court, Ms O’Sullivan said the company was considering “all choices” available to it in terms of restructuring, including seeking court protection.
The judicial review proceedings were mentioned before Mr Justice John Hedigan yesterday.
Budget claims the regulator effectively shut down its business from Monday last because Budget’s parent firm declined to give an “open-ended and unlimited” guarantee for all liabilities of Budget.
It claims the regulator has failed to make a decision on its application to renew its licence, due to expire on October 31st last.
It claims the regulator sought a “letter of comfort” from Budget’s parent, Scandinavian-owned Primera Travel Group HF, to support Budget until its revenue reserves reached a level of 50 per cent net assets. Primera did provide a letter of comfort stating it would ensure Budget was in a position to meet its obligations to the regulator.
The licences of more than 60 Irish travel agents and tour operators expired at the end of last month, according to data posted on the website of the Commission for Aviation Regulation yesterday.
Forty travel agents and 26 tour operators did not renew their licenses when they expired at the end of October. The data also states that 11 travel agents and five tour operators have indicated they will not be renewing their licenses.