AFTA calls for VA protection

MORE than $100 million worth of pre-paid Virgin Australia tickets issued through travel agents are at risk due to the voluntary administration of the carrier, with the Australian Federation of Travel Agents (AFTA) urging Deloitte to confirm these tickets will be protected and honoured.

AFTA Chairman Tom Manwaring has written to the administrators seeking urgent confirmation of the status of the tickets, as the bidding process for the carrier comes to a conclusion.

“Customers who have booked and paid in good faith must be able to fulfil their flights with the airline post sale,” he said.

“As the peak industry body, AFTA seeks to ensure that our members’ customers are adequately protected.

“Failure to do so would seriously impact consumer and sector confidence,” Manwaring said.

He said clarification is required as to the intended treatment of these payments currently being held by Virgin Australia.

“This cannot be a repetition of Ansett...agents must not be burdened with charge-backs which would prove financially overwhelming in the current economic landscape,” he said.

Manwaring noted that the travel industry had continued to be supportive of VA in recent months, encouraging customers to take a similar stance.

“In addition to acknowledging the good faith shown by consumers in pre-paying, given the current environment AFTA’s Board and Members trust you and the purchaser appreciate the critical importance of protecting and rewarding consumer and agent confidence in Australia’s second airline as it moves forward,” Manwaring wrote.

The letter from AFTA has also been sent to the shortlisted bidders, Bain and Cyrus.