[Article] Regulator warns over FreshAer

Victor

http://home.eircom.net/content/irelandcom/topstories/1131908?view=Eircomnet

Regulator warns over FreshAer
From:ireland.com
Saturday, 2nd August, 2003

FreshAer, the UK company that has been selling flights to Irish consumers for the past week, is operating illegally, according to the Commission for Aviation Regulation (CAR), which yesterday warned that anyone who books the flights would not be protected by travel trade legislation. Barry O'Halloran reports.

FreshAer is not licensed to operate as an airline in this State or anywhere else in Europe. It plans to launch services from Dublin to UK and Spanish destinations on October 1st. The company is negotiating a deal with an Iceland Air subsidiary to provide the services until it gets the necessary certification.

The CAR questioned the company about its plans this week and, on Thursday, warned it to stop advertising here. Yesterday, the CAR issued a public statement saying that it had come to its attention that FreshAer was taking flight bookings and advertising on the Web and in the media.

The statement said: "This company is not licensed by the commission and is therefore acting in contravention of the Irish travel trade legislation. As a consequence, members of the public should be aware that they have no protection under the Irish travel trade legislation if they deal with this company."

As FreshAer is not a licensed airline and is selling flights that will effectively be operated by another carrier, Irish law regards it as a tour operator. However, as it does not have a tour operator's licence, it cannot offer protection to consumers.

Licensed tour operators have a bonding system that compensates consumers in business failures.

Acting as a tour operator without these guarantees can lead to prosecution, according to the CAR, which regulates aviation and the travel industry.

FreshAer spokesman Mr John Lepp last night dismissed the CAR warning as "bunkum" and argued that it was operating outside the Republic's jurisdiction.

"The aeroplanes are on the Icelandic register whilst they are being operated by Iceland Air, therefore it falls outside the Irish jurisdiction," he said.

Mr Lepp said that Iceland Air had all the necessary licences it needed to operate in the Republic and was "inherently bonded" on that basis.

He stated that, under the EU open-skies policy, FreshAer was entitled to sell tickets in the State. "I have written a long letter to Bill Prasifka [the aviation regulator\] outlining this and I am awaiting a reply," he added.

The Iceland Air subsidiary involved, Luftleidir, last night denied a FreshAer statement issued on Wednesday claiming that the necessary agreements to provide the operating licence from October were signed and in place.

A Luftleidir spokesman said talks were progressing in good faith but had not been finalised. It is understood that both sides have agreed a letter of intent. Mr Lepp predicted that the contract would be signed on August 13th. He denied that the company's original statement was inaccurate, as the deal was "as good as done".

Sources yesterday said that Luftleidir was negotiating on the basis that FreshAer acquire either an operating licence or a tour operator's licence by October 1st. Mr Lepp said this was not the case.

The arrangement will involve FreshAer leasing the craft and Luftleidir crewing them. FreshAer is also attempting to buy an operating licence by bidding for a UK company called Cougar Leasing, which is in administration (examinership). Its licence is suspended but would be reactivated if a deal is done, Mr Lepp said.

Victor

I wonder if someone had a premonition? It looks like you fay your money and get fresh air.

http://www.unison.ie/promotion/

Terms & Conditions
1. The promoter is FreshAer Holdings Limited, trading as FreshAer.com, whose registered office is Index House, St Georges Lane, Ascot, Berkshire SL5 7EU.

2. The Promotion is open to persons over the age of 18.

3. No warranty or Guarantee is given by Independent Newspapers (Ireland) Limited in relation to the flights and travel arrangements.

4. All applications for this promotion must have 3 tokens as published in the Evening Herald and a Stamped Self Addressed Envelope (SSAE). Both should be sent to the address printed in the Evening Herald entry copy (no entry form is needed). No photocopies of tokens will be accepted.

5. Incomplete, illegible or late entries will not be accepted. No responsibility will be accepted for entries lost or delayed in the course of transmission. Proof of postage is not proof of receipt. SSAEs will not be returned.

6. Independent Newspapers (Ireland) Limited will accept no responsibility if for any reason the flights selected by an entrant is withdrawn from sale prior to or after the selection by the promoter or if the flights do not proceed for any reason.

7. The promotion consists of a two for one flight offer. Subject to the terms and conditions of the promotion when a flight between Dublin, Ireland and Manchester, Birmingham or London, Stansted in England, Malaga or Alicanté (one way or return) is purchased by the entrant, a corresponding flight can be claimed for which only normal airport fees, taxes and charges need be paid.

8. All flights are strictly subject to normal availability at time of purchase and terms and conditions of the Evening Herald / FreshAer.com promotion July/August 2003. There are 100,000 flights available for this promotion.

9. There is no alternative for the 2 for 1 flights.

10. The closing date for receipt of entries to the promotion is August 22nd, 2003 at 6.00pm. No entries will be accepted thereafter. Promotional vouchers will be despatched by post only.

11. Independent Newspapers (Ireland) Limited or FreshAer.com are not obliged to enter into any correspondence regarding this promotion.

12. The promoter reserves the right in its absolute discretion to disqualify any entrant or nominee, to add to or waive any rules without prior notice to the entrants or in the event of circumstance beyond the control of the promoter arising which in its opinion makes it desirable to cancel the promotion at any stage.

13. Normal prices apply when purchasing the first flight. The second flight can then be claimed but additional airport taxes, fees and charges for each flight must be paid for by the entrant. As at 21st July 2003 the following taxes, fees and charges are projected to be levied for flights departing on October 1st 2003 from the following airports: Dublin: €13.52 , London Stansted: £13.26, Birmingham: £14.86, Manchester: £19.86, Alicante: €6.50 and Malaga €7.78 (or the local currency equivalent). These taxes, fees and charges are under the control of the respective airport authorities and are subject to fluctuation at any time. All flights must be booked by 13 September 2003. To book call: (Lo-call) 1890 757 757.

14. All flights must be taken before 30 September 2004. Offer excludes Bank Holidays (UK and Republic of Ireland), Christmas Day, Boxing Day and New Years Day.

15. Bookings made can be changed subject to availability, an administration fee plus any additional price differential that may exist between the price of the two tickets. No refunds will be given in any circumstance what so ever including but not limited to where the price of the replacement ticket is lower than the original one.

16. Bookings must be made no less than 3 days in advance of your departure date

17. Credit and Debit card handling charges for passengers booking flights is €6 per booking.

18. Passengers will not be allocated a ticket, as FreshAer.com is a ‘ticketless’ airline. A booking reference, which must be quoted at check-in, will be issued. All passengers must be in possession of a valid passport for all FreshAer.com’s International flights. Valid photographic identification e.g. a Drivers Licence will be accepted for FreshAer.com’s regional flights.

19. The number of seats available for this promotion on each flight is strictly subject to availability.

20. Passengers are responsible for their own insurance. It is recommended that passengers take out suitable travel insurance.

21. FreshAer.com and Independent Newspapers accept no responsibility for vouchers lost or damaged in the post.

22. No child discounts are permitted, full fair price must be paid for any child over 24 months. Adults can use the free flight for their child. Infants under 24 months fly free.

23. FreshAer.com bookings are subject to the conditions of contract, as made available on the FreshAer.com web-site, or printed on FreshAer.com form of itinerary/receipt and to FreshAer.com‘s General Conditions of Carriage for Passengers and Baggage from time to time and such conditions shall prevail in the event of any inconsistency within the terms of this offer.

24. Transfers onwards to destinations are not the responsibility of FreshAer.com. Passengers must organise their own transfers as they see fit.

25. FreshAer.com shall not be held responsible for connecting flights missed as a result of delayed or cancelled FreshAer.com flights.

26. FreshAer.com & Independent Newspapers reserve the right to vary any terms and conditions of this offer at its absolute discretion.

27. FreshAer.com and Independent Newspapers cannot be responsible for those passengers who are unable to make a booking through the Call Centre.

28. FreshAer.com & Independent Newspapers reserve the right to cancel this promotion without notice, or obligation.

Victor

Initiallly i wasn't able to find news stories on this so i sent them an e-mail. thsi is the response.

Dear XXXXXXXX

Thank you for your e-mail re: FreshAer.

I can confirm that the Commission did issue a public notice on Friday regarding FreshAer.com.

This company is not licensed by the Commission and as they are taking bookings for flights departing from Dublin, they are acting in contravention of the Irish Travel Trade legislation. As a consequence, members of the public should be aware that they have no protection under the Irish Travel Trade legislation if they deal with this company.

We are currently in contact with the company with a view to regularising their position. Please keep an eye on our website (www.aviationreg.ie) in case of any further announcements.

Regards

Louise O'Dwyer
Aviation Authorisations Executive
Commission for Aviation Regulation,
3rd Floor,
Alexandra House,
Earlsfort Terrace,
Dublin 2.
General Tel: 353 1 6611700

dmeehan

i have been emailing freshaer for months and never got a reply

they still havent posted any fare or timetable info on their site

Victor

Apparantly one of their directors is banned from acting as a director in the UK due to a fraud conviction.

http://home.eircom.net/content/irelandcom/topstories/1165362?view=Eircomnet

FreshAer chief executive barred as director in UK
From:ireland.com
Saturday, 9th August, 2003

The chief executive of FreshAer, the British company planning to launch budget flights from the Republic next October, has a conviction for fraud and is barred from acting as a company director in the UK until 2009.

In October 1999, Snaresbrook Crown Court in London convicted Mr John Lepp, whose full name is Mr John Ditchfield-Lepp, on two counts of trading with intent to defraud creditors. He was sentenced to 12 months in prison and disqualified from acting as a company director until October 2009.

A FreshAer spokeswoman yesterday confirmed that Mr John Ditchfield-Lepp was the company's chief executive and that he had been barred from acting as a director for 10 years from 1999.

UK Companies House records show he was disqualified under section 2 of the English Company Directors Disqualification Act 1986. This provides that UK courts can disqualify someone from acting as a director where they have been convicted of an indictable offence under company law. The maximum ban is 15 years.

Yesterday, Snaresbrook Crown Court confirmed that, in October 1999, a Mr John Ditchfield-Lepp, who at that time had an address in Hertfordshire, England, was convicted on two counts of trading with intent to defraud creditors after pleading guilty to the offence. He was tried along with three others, two of whom were cleared. The fourth man also pleaded guilty and was given a community service order and disqualified from acting as a director for five years.

The court did not have the name of the company involved on its records.

FreshAer's spokeswoman pointed out that Mr Lepp was not registered as a director of the company. She said that, as he was a significant shareholder, he was entitled to be chairman and chief executive, but not a director of the company.

A spokesman for the UK Department of Trade and Industry (DTI) told The Irish Times that anyone disqualified from acting as a company director in Britain could not be appointed to such a position, or carry out the duties of a director, for the period of the ban. He added that anyone convicted of acting as a director while they were disqualified could face up to two years in prison.

The Irish Times understands that Mr Lepp holds 34 per cent of the company. He became involved when the project was at an early stage. Company records show that there were three people originally involved in establishing FreshAer.

They were former Aer Lingus employees, Mr Tony Robinson and Mr Danial Higgins, and Mr John Roche, former chief financial officer at the London office of Rosenbluth International, the US business travel company. Mr Higgins and Mr Roche are no longer involved with FreshAer. Mr Robinson is still a director of the company.

FreshAer has been selling flight tickets for destinations in the UK and Spain to Irish people via a website and telephone line for almost two weeks. It has also been running a promotion in conjunction with the Evening Herald newspaper. Flights are due to begin in October.

It is not licensed to operate as an airline or tour operator in this State. The Irish Aviation Authority and the Commission for Aviation Regulation (CAR) are jointly responsible for licensing Irish airlines. Last week, the regulator said FreshAer was acting illegally, and warned that consumers would not be protected by Irish law if they booked its flights.

FreshAer has since applied to the commission for airline and tour operator licences.

Mr Lepp was not available to comment yesterday.

parsi

from: breeaking.examiner.ie/index.html :

Fresh Aer to refund Irish customers
11/08/2003 - 6:10:15 am

The British company Fresh Aer, which is planning to launch budget flights from the Republic in October, has announced its intention to refund all payments made by customers here.

The public had been warned last week that Fresh Aer was not licensed by the Commission for Aviation Regulation and was acting in contravention of Irish Travel Trade legislation.

It has also been revealed that the company's Chairman John Lepp has left the company and withdrawn financial support of €5m because of adverse publicity.

The company's commercial manager has also severed links with Fresh Aer.

Victor

http://home.eircom.net/content/irelandcom/topstories/1173089?view=Eircomnet

FreshAer to refund customers as chairman departs
From:ireland.com
Monday, 11th August, 2003

FreshAer, the British company planning to launch budget flights from the Republic in October, is preparing to refund all payments received from customers. Siobhán Creaton, Finance Correspondent, reports

It also announced yesterday that it will not accept any further bookings until it has received regulatory approval.

In a statement, it also revealed the departure from the company of its chairman and chief executive, Mr John Lepp and its commercial manager, Mr Erig Conway.

Its sole director, Mr Tony Robinson, said Mr Lepp's departure was being announced "with regret" and as a result of "adverse publicity".

On Saturday The Irish Times disclosed that Mr Lepp, whose full name is Mr John Ditchfield-Lepp, was convicted on two counts of trading with intent to defraud creditors in London in 1999.

He was sentenced to 12 months in prison and disqualified from acting as a company director until October 2009.

Mr Lepp, who is believed to hold 34 per cent of FreshAer, has also withdrawn his financial support from the company.

FreshAer had been selling tickets to destinations in the UK and Spain to Irish consumers through its website and telephone lines for almost two weeks but had not been licensed to operate as an airline or tour operator in this State.

The company refused to state how many bookings it had taken or the amount of money to be repaid.

The airline is still intending to begin flights in October after it has obtained the necessary approval. Mr Robinson said the airline had decided to refund payments and cease taking bookings in order to co-operate fully with the Commission for Aviation Regulation. It began the application process to secure a licence to carry passengers last week.

Mr Robinson said FreshAer had taken "the regrettable step of stopping all further bookings until such time that it is fully licensed in the eyes of both EU and Irish legislation".

The company has written to all customers telling them that their money will be refunded.

"FreshAer has instructed its merchant services bank to reverse all payments received by customers and to refund the full amount directly to their credit cards - a process which may take up to 10 working days to complete", according to the company statement.

Referring to The Irish Times report of Mr Lepp's disqualification as a director in the UK, Mr Robinson pointed out that he would still have been entitled to be a director of a company incorporated in Ireland.

He stressed that Mr Lepp was not, and never had been, a director of FreshAer.

"Right from the outset, Mr Lepp has made his position clear to us and at all times has been honest and honourable. He has acted as a spokesman/consultant for the company and a key investor who has invested heavily into the FreshAer.com concept."

http://home.eircom.net/content/unison/national/1173384?view=Eircomnet

New airline has its wings clipped over licence row
From:The Irish Independent
Monday, 11th August, 2003
Helen Bruce

NEW airline FreshAer has been grounded before take-off after the regulatory body claimed it was taking bookings without a licence.

Customers were told yesterday their money would be immediately refunded in full, and that promotional vouchers for free flights should be retained until the dispute over the tour operator's licence is resolved with the Commission for Aviation Regulation.

Consultant and investor John Lepp was also said to have severed all professional ties with the company and to have withdrawn his financial support - to the tune of €5m in personal funds - blaming adverse publicity.

Commercial manager Erig Conway has also left the company, which promised to offer low-cost flights from Dublin to a range of UK and Continental destinations, via a deal closed with Icelandair.

A company statement said: "Following the recent speculation concerning the trading status of FreshAer.com, the new airline has today confirmed that, in order to co-operate fully with the Commission for Aviation Regulation, it has taken the regretable step of stopping all further bookings until such time as it is fully licensed in the eyes of both EU and Irish legislation."

FreshAer Holdings Ltd has instructed its Merchant Services Bank to reverse all payments received by customers and to refund the full amount directly to their credit cards - a process which may take up to 10 workings days to complete.

Tony Robinson, the sole director of FreshAer Holdings Ltd, said: "This decision has not been taken lightly, and the company apologises for any inconvenience caused to our customers."

He said the airline had run a successful promotion with the Evening Herald newspaper, and it was "with deep regret" that the decision had been made.

"However, the company feels it is in the best interests of our customers and the general public," he said.

"For those who are still holding vouchers as well as those who have already responded to the promotion, we would advise them to retain their vouchers which will be redeemable once the licensing issues are fully resolved," he added.

Paul McDonell, brand manager for the Evening Herald, said the paper had been in constant contact with directors of FreshAer and the Commission, and had carried on its promotion in good faith based on strong assurances of the airline's future.

The airline has suffered a difficult launch phase, starting last week when the Commission for Aviation Regulation took the unprecedented step of warning the public that FreshAer "is not licensed by the commission and is therefore acting in contravention of the Irish Travel Trade legislation".

The Irish Travel Agents' Association and the Irish Tour Operators' Federation also made a complaint to the Director of Consumer Affairs about what they claimed were the risks posed to consumers of unlicensed and, therefore, unbonded companies offering flights.

Mr Lepp was the subject of newspaper reports stating he was disqualified from holding directorships in Britain. Mr Robinson responded yesterday that although Mr Lepp would still have been fully entitled to be a director of a firm incorporated in Ireland, he was not, nor ever had been, a director of the company.

"Right from the outset Mr Lepp has made his position clear to us and at all times has been honest and honorable. He has acted as a spokesman/consultant for the company and a key investor who has invested heavily into the FreshAer.com concept," said Mr Robinson. "It is with regret that FreshAer Holdings Ltd have to announce that, as a result of the adverse publicity, Mr Lepp has now withdrawn his financial support and severed all ties with FreshAer.com."

Victor

Nice to see they are operating off a btopenworld.com e-mail address :rolleyes:

http://www.freshaer.com/

PRESS RELEASE
REF: FreshAer PR-FA009 – Issue Date Sunday 10th August, 2003
FRESHAER.COM CO-OPERATES FULLY
WITH IRISH REGULATORY BODIES

Following the recent speculation concerning the trading status of FreshAer.com, the new airline has today confirmed that, in order to cooperate fully with the Commission for Aviation Regulation, it has taken the regrettable step of stopping all further bookings until such time that it is fully licensed in the eyes of both EU and Irish Legislation.

In a letter sent today to all customers of FreshAer.com, the company has stated that everyone who has currently booked flights with the new airline will be refunded their money, forthwith and in full. FreshAer Holdings Ltd. has instructed it's Merchant Services Bank to reverse all payments received by customers and to refund the full amount directly to their credit cards - a process which may take up to 10 workings days to complete.

Tony Robinson, who is the sole director of FreshAer Holdings Ltd, said, "This decision has not been taken lightly, and the company apologises for any inconvenience caused to our customers. We have had a wonderfully successful promotion with our friends at the Evening Herald and the Independent Group of Newspapers and it is with deep regret that this decision has been made. However, the company feels that it is in the best interests of our customers and the general public.

"For those who are still holding vouchers as well as those who have already responded to the promotion, we would advise them to retain their vouchers which will be redeemable once the licensing issues are fully resolved," he added.



Following on from reports in an Irish newspaper that Mr. John Lepp is currently disqualified from holding directorships in the United Kingdom, FreshAer Holdings Ltd. have pointed out that he would still have been fully entitled to be a director of a company incorporated in Ireland.

Mr. Robinson was keen to stress that Mr. Lepp was not, nor has ever been a director of the company.
He said that "Right from the outset Mr. Lepp has made his position clear to us and at all times has been honest and honorable. He has acted as a spokesman/consultant for the company and a key investor who has invested heavily into the FreshAer.com concept. He has not been appointed as Chairman or CEO of the company but has clearly been very interested in the company's progress and has helped to negotiate key contracts as a consultant.

He continued, "It is with regret that FreshAer Holdings Ltd. have to announce that, as a result of the adverse publicity Mr. Lepp has now withdrawn his financial support and severed all ties with FreshAer.com. Mr. Erig Conway, formerly Commercial Manager, has also left the company."

---

MEDIA CONTACT:
For all media enquiries please contact: -

Kathy Goode, providing PR & Communications for FreshAer Holdings Ltd.
Tel: 01394-271406
Mobile: 07790-226640
Email: kathy.goode@btopenworld.com or pr@freshaer.com

They also have an Irish company "FRESHAER AIRLINES LIMITED" (registered 16/05/2003!) http://www.cro.ie/search/