£68m for airline tycoon who refuses to play fair on delays
Philip Meeson, a former RAF pilot who launched the airline in its current form in 2003, saw the value of his 38pc holding in parent company Dart Group soar from £365m to £433m. ThE controversial boss of Jet2 was £68m richer last night after a bullish trading update drove shares in his business to a record high.
The increase in the 70-year-old’s paper fortune came after the firm said profits for the year will be ‘materially ahead of current market expectations’, which sent its shares up 19pc.
But campaigners raised fresh questions over Jet2’s commitment to customer service after it emerged that it has refused to sign up to a scheme that ensures fair compensation for delayed flights.
Jet2 is the only one of the ten largest airlines to refuse to join the ‘alternative dispute resolution’ (ADR) complaints service that was set up by the Civil Aviation Authority two years ago to ensure legitimate claims are dealt with fairly.
While customers of British Airways, Ryanair and EasyJet can seek redress through an independent arbitrator if their claims are rejected by the airline, Jet2 passengers have to go to court, in what can be an expensive and time-consuming process.
A CAA spokesman said: ‘ADR is good for UK consumers, which is why it is disappointing that Jet2 has so far refused to sign up, denying their passengers access to an independent arbitration service. Clearly this decision puts Jet2’s customers at a distinct disadvantage and, in many cases, could mean their passengers are denied the fundamental rights they are entitled to. We have invited Jet2 to meet with us so we can discuss our concerns with them.
‘Our aim is to ensure that consumers get the best protection when they travel.’
Justin Modray, of consumer group Candid Money, said: ‘There is nothing more frustrating for customers than not having their complaints dealt with in a satisfactory manner.
‘I don’t think anyone would begrudge the success of this company but it does grate when it comes at the expense of customer service.’
Dart Group, which runs package holidays as well as the Jet2 airline, has benefited from the collapse of rivals including Monarch, Air Berlin and Alitalia.
It yesterday welcomed the return of more normal prices for its holidays and flights after a year of heavy discounting.
Analysts had forecast profits for the year to the end of March would fall from £101m to £94.9m. But they are now pencilling in a haul of £112m and raised their forecasts for next year from £80.5m to £110m.
The update sent Dart shares up 18.6pc or 120.5p to an all-time high of 770p, valuing the company at more than £1.1bn.
Meeson, a father of one, is no stranger to controversy. In 2006, he raised eyebrows when he called striking air traffic controllers in France ‘lazy frogs’.