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Old 19th Aug 2009, 08:58
  #12 (permalink)  
scottcalvin
 
Join Date: Aug 2009
Location: United Kingdom
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Firstly AL446 and Groundhog, I am not a troll. I am very successful running 11 businesses and also have successfully run 3 airline operations from start up that have been sold on. However this is not about how big my balls are or how small yours might be, it was a stated fact that the CAA are very over regulated and make it nearly impossible to start a new operation from the UK such as the days of Sir Freddie Laker, Sir Richard etc...

Air transport as an industry is regulated far more tightly than many other industries that are far riskier because of the glamour image that it offers and that it is an easy target. Yes some will argue that this may well be appropriate what the CAA demands but in reality it is wrong.

I was not on about operational regulations such as safety or anything as this; I was on about financial guarantees, and other matters required and the legislation that is involved with the CAA. If you have NOT been exposed to this then you will not have a clue what I am on about, you will only see small details online, but lets for example give you a home truth. As a CEO of an airline approximately 3 months of working year will be taken up with CAA guideline completion for financial preparations and the submit process, it will then go through a slow return from the CAA and then all aspects will need to rushed through last minute. This happens with all airlines regular.

In the process of tour operators who run there own charter operators such as Thomson, Thomas Cook and others they are unfairly controlled by the CAA Bonding Regulations.

Fact: A bond is to protect a customer and suppliers.

Fact: CAA requires a bond to cover all the costs they believe will match the forecast.

Fact: The airline or charter operator will use a merchant credit banking facility to take 99% of its business. This in its own right will have regulations, so for example lets take the major banking institutes that provide merchant facilities they in most cases with smaller operators retain 5 to 10% of each transaction for 6 months (that’s each transaction) on a rolling scale to cover failure as well. They will also in 95% of cases now only pay 7 days in arrears I am led to believe by a number of senior operators, which means that the operator firstly sees 5 to 10% of its transactional profit retained and then a further delay on receiving its funds from the merchant in the mean time. They are in effect offering a restricted service to the travel industry.

Fact: A £1 levy for tour operator that was proposed to help all businesses has not really worked because it has gone up already, when it was brought in for tour operators, it was promised and I quote "this charge will not go up for at least 3 years..." well that lasted a long time, all over 11 months for the poor tour operators.

Groundhog you stat that you have started an airline and also held an ATOL license for many years, then you will know 100% that I am correct on the points above generally across the board and not on a single case by case basis. You say you have an airline with your operator well I do not envy you with all this legislation and financial restrictions.

In simple terms this was not about how many posts an individual has on this forum it was a post to start a discussion following conversations that I have been involved with over the month with others and wanted a wider perspective it is clear that instead of stimulating the conversation it in fact has brought insults, and a contest of how big your balls are!

Which is a great shame? I expect you to reply with more insults, as that is human nature but at the end of the day the fact remains that the CAA is run by civil servants who have no clue of the pressures of business and have created a paper trail of miss-management so long you can't even find the starting point. Aviation is a wonderful business and fun to be involved but once again the British mentality restricts growth with negativity and paperwork instead of positive thinking.

I rest my case; you guys have proved my point!

Last edited by scottcalvin; 19th Aug 2009 at 09:22.
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