PICTURES:REX FEATURES/CENTRAL NEWS
NEWS
Michael Sanchez will be
sentenced next month
CAA accuses
Travel Republic
of ATOL breach
Travel Republic and its
director Kane Pirie have
pleaded not guilty to a breach
of the ATOL Regulations in
a case brought by the Civil
Aviation Authority (CAA).
A summary hearing at
Westminster Magistrates
Court on July 1 resulted in
the case being referred for
trial before a District Judge
on October 12. The trial is
likely to last three weeks.
Travel Republic was
summonsed on 20 counts,
and Pirie on another 20,
relating to breaches of
the Civil Aviation ATOL
Regulations 1995.
Counsel for the CAA said
the issue was “whether the
defendants put together
package holidays”. It will
also include statements
from 30 consumer witnesses.
Nicholas Purnell QC
for the defence said: “The
prosecution will say there
was a single contract. We
will say there was a series of
diff erent contracts.”
Three plead guilty
to £1.2 million fraud
STORY OF
THE WEEK
Chloe Berman
chloe.berman@rbi.co.uk
Agents have been urged to
exercise caution when entering
into business relationships
during the recession.
The warning comes
after three bogus travel
agents pleaded guilty
to conning airlines
out of fl ights worth
£1.2 million.
Concert promoters
Michael Sanchez, 29, Rashid
Hammou, 37, (both from
Eltham, London) and Paul
Kelly, 53, (from Lewisham,
London) bought Essex-
Vertical Group buys
Holiday Experts assets
EXCLUSIVE
The trading assets of
homeworking company
Holiday Experts have been
bought by Vertical Group
in a deal worth more
than £100,000.
The 29 homeworkers are
now part of a new division
of Vertical Group. They are
trading as full Freedom
Travel Group members
under travel agency Miss
Ellies Travel , also owned
by the group. Mike Russell
remains managing director.
Vertical Group chief
based Flights International
(Southend) in March 2007,
Southwark Crown Court heard
earlier this week.
Agency owner Paul
McDonald, who sold the
agency after 21 years, received
only 75% of the agreed price
for the business.
Following the deal, during
one weekend, the group sold
£1.2 million-worth of airline
tickets, although the business
never received the money.
The court also heard the
group used the good name
and credit rating of Flights
International (Southend)
to purchase goods worth
£120,000, without paying
for them.
As well as running the
agency in Maldon, Essex, the
threesome opened a second
offi ce in London, which
Peter Healey
is looking to
acquire more
homeworking
companies
executive Peter Healey
said the group had bought
the websites, databases,
bookings and intellectual
property rights of the fouryear-old
business, which is
going into administration.
Miss Ellies Travel has taken
over the bookings, which
are fully protected.
“We are fortunate to be
in a position to purchase
Holidays Experts’ assets, and
protect the homeworkers,
management team and
clients,” said Healey.
Holiday Experts’ turnover
this year will be about
£10 million, the same as
Miss Ellies, creating a
£20 million retail business
for the group. The group
is targeting a £50 million
turnover in 2010 and
£100 million in 2011.
Healey is looking to buy
more small homeworking
groups. “We have got a clear
strategy. I am looking [at
potential acquisitions] at
the moment,” he said.
they used as a base to open
accounts with several highstreet
retailers.
The business went into
liquidation in August 2007 and
the Civil Aviation Authority
called in its ATOL bond in
October 2007. All fi ve staff also
lost their jobs.
Prosecution lawyer Jane
Bickerstaff said: “Bearing in
mind the airlines suff ered losses
of £1.2 million, and the loss to
the travel agency owner, the
sentence is likely to be years,
rather than months.”
All three pleaded guilty
to conspiracy to defraud,
and are due to be sentenced
next month.
Trevor Sears, who acts as
legal counsel to IATA and is a
partner at law fi rm Davenport
Lyons, said: “The group
bought the company, and over
the fi rst two months sales were
small. But the airlines never
received payment for tickets
booked in July and August.”
He said many consumers
who had booked fl ights may
have still fl own at the expense
of the airlines. Others who had
paid discounted fares may
have been asked to pay the
balance before fl ying.
Prevention of Fraud in
Travel chairman Barry Gooch
said: “There have been several
instances where companies
have been tempted to enter
into a business relationship
that ends up costing the owner
his livelihood.
“It is rare for a company to
survive this type of attack.”
For more on
this story, go to
www.travelweekly.
co.uk/fraud
Jackson ticket
holders will
get full refund
Operators are off ering full refunds on
Michael Jackson packages following
the singer’s death last week.
The musical legend had been
due to kick off a series of 50
concerts over a period of nine
months at the O2 Arena in London
this month.
However, following his
surprise death at the age of 50,
Superbreak, Thomson Experience
and Keith Prowse Attraction
Tickets are off ering full refunds,
or replacement bookings for the
concert packages.
Superbreak sales director Ian
Mounser said while the refund
option was available, many
customers may choose to keep the
break, and book a replacement
West End show.
Manchester Airport Group,
which was off ering Jackson
tickets as an agent incentive in
conjunction with Balkan Holidays,
has replaced them with tickets to
Beyonce’s I Am… tour in the UK
next summer.
6 | Travel Weekly | July 3 2009 www.travelweekly.co.uk
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