Scheme failing agents: Magellan GM

Scheme failing agents: Magellan GM
By admin

The collapse of Air Australia and the likelihood that creditors will receive little has demonstrated the failure of the existing consumer protection structure, the general manager of Magellan Travel Group has declared.

“The inadequacy….of the scheme is plain to see,” Andrew Macfarlane said.

Not only are consumers left in the lurch as airline failure is not covered by the Travel Compensation Fund, but agents too have been stung.

“Agents are copping credit card chargebacks and in many cases electing to refund all clients regardless of the form of payment,” he said. “They [agents] are waiting to see what funds if any they can recover from IATA, consolidators and wholesalers.”

He added: “Consumer protection ought not be contingent on the vendor and the form of payment. It should be broad based and equitably applied.”

Macfarlane said the Travel Industry Transition Plan for the reform of regulation should “move decisively” to address the problem.

He also urged consolidators and wholesales to support travel agents by recovering funds where possible and returning them to retailers.

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