Travel firms warn Sunak they face ‘a perfect storm’

‘We’ve had six months of no income and three heavy blows with our three main markets put under quarantine measures’

TRAVEL companies face “three winters”, MPS warned yesterday, as 220 businesses wrote to Rishi Sunak urging him to save the industry.

In a letter, seen by The Daily Telegraph, the firms are calling on the Chancellor to save “hundreds of thousands” of jobs after France, the UK’S second most popular holiday destination, was struck off the travel corridor list. The group of businesses, under the umbrella travel association AITO, said a “total lack of understanding of the travel industry” by the Government and a “complete lack” of consultation” had created a “ghastly perfect storm” for the sector.

The holiday firms are asking the Chancellor for a six-month extension to the furlough scheme for the travel industry “as a minimum” requirement.

The businesses are also calling for the Treasury to provide an “incentive” for bond debtors to provide travel companies with funds in order for firms to be able to provide the “financial protection required by law to enable us to continue in business”.

Noel Josephides, AITO’S director, said that the latest restrictions on France were “devastating” for its firms.

He said: “If the Government does not act now then in the winter we will see a wave of redundancies. We’ve had six months of no income and we’ve had three very heavy blows this summer with our three main markets – France, Spain and Portugal – coming under quarantine measures.

“We’re coming to the end of the furlough period in October and there will be jobs lost as a result if the Government does not act fast.”

Henry Smith, the Tory chairman of the Future of Aviation group of MPS, said that the travel industry would now essentially suffer “three winters” and called on the Chancellor to provide sector-specific support.

He noted that Gatwick Airport, which is covered by his Crawley constituency, is still paying a “huge amount in business rates when their terminal is essentially empty”.

“People will be losing their jobs in the coming weeks and months and this would be a welcome reprieve,” he said.

Karen Dee, chief executive of the Airport Operators Association, said its members had lost £2billion since the start of the pandemic and were still paying £500,000 in business rates every day. She said: “We have consistently called for support including relief from business rates and an extension to employment support beyond October and it is long overdue that the Government provides the same level of support to aviation that it has provided to other sectors.”

Heathrow Airport accused the Government of playing “quarantine roulette” and repeated calls for testing in airports to boost demand and reduce the need for severe border measures.

A spokesman for the airport said: “The UK needs a more sustainable long-term plan for the resumption of travel than quarantine roulette.

“Testing could provide an opportunity to safely reduce the length of quarantine in certain circumstances.”

Germany requires mandatory testing for travellers flying in from high-risk countries, with those who test negative avoiding the need to self isolate.

Meanwhile, there was a ratcheting up of tensions between London and Paris over the decision to remove France from quarantine-free travel.

The Mayor of Calais accused Boris Johnson of “panicking” and suggested the decision had been made as an “aggression” over Channel migrant crossings.