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Ghana Travel Ltd v Flyjet Ltd Briefing Paper

Fri, 8 Apr 2005 Source: --

Passenger Comments

http://www.carsurvey.org/air/airline_Flyjet.html
2/2/05 LGW to SSH You have to pay for everything ? such as a second cup of tea let alone wine?. the seating is very cramped and if you are over 5?11? you will spend the flight with your knees firmly impaled into the seat in front of you. Probably the most uncomfortable flight I have ever endured and I fly dozens of times a year. The Boeing 757 I flew in both directions can be considered as aged, Fly Jet needs to update their aircraft (I think they only have two, and hate to think what would happen if the aircraft developed a fault ? you?ll be stranded) In summary if you want comfort, better food and a free G&T pay a little extra and fly with a scheduled airline unless you wish to travel like veal cattle.

2/2/05 LGW to ACC

Outward flight delayed by 3 hours?.we had a stop in Palma which we were not advised about until we took off, stop in Palma due to fuel cause last minute 'heavy' cargo on the plane. Arrived in ACC with all my baggage missing (3 pieces). Return flight was delayed by 15 hours. Seat pitch are very small?.staff were smiling and very helpful though limits on drinks such as 2 drinks per passengers. Definitely not flying with them again looks like they are following Ghana Airways model. I was told I could not carry my hand luggage as it has wheels on so I should carry my other bag which is double the size on the plane. Makes no sense at all?

Passenger Comments

http://www.carsurvey.org/air/airline_Flyjet.html
2/2/05 LGW to SSH You have to pay for everything ? such as a second cup of tea let alone wine?. the seating is very cramped and if you are over 5?11? you will spend the flight with your knees firmly impaled into the seat in front of you. Probably the most uncomfortable flight I have ever endured and I fly dozens of times a year. The Boeing 757 I flew in both directions can be considered as aged, Fly Jet needs to update their aircraft (I think they only have two, and hate to think what would happen if the aircraft developed a fault ? you?ll be stranded) In summary if you want comfort, better food and a free G&T pay a little extra and fly with a scheduled airline unless you wish to travel like veal cattle.

2/2/05 LGW to ACC

Outward flight delayed by 3 hours?.we had a stop in Palma which we were not advised about until we took off, stop in Palma due to fuel cause last minute 'heavy' cargo on the plane. Arrived in ACC with all my baggage missing (3 pieces). Return flight was delayed by 15 hours. Seat pitch are very small?.staff were smiling and very helpful though limits on drinks such as 2 drinks per passengers. Definitely not flying with them again looks like they are following Ghana Airways model. I was told I could not carry my hand luggage as it has wheels on so I should carry my other bag which is double the size on the plane. Makes no sense at all?

Industry Comments

http://www.pprune.org/ -- Early this morning a Flyjet plane LGW-TFS-LGW took off, but a few minutes later it had to land again in LGW. "Technical problems" the captain said. Engineers tried to repair the a/c on the ground but being unable to achieve it, and unable to find a new Flyjet a/c to operate that route, they had to sub-charter the flight with TCX. So, passengers could finally reach TFS after a 12 hours delay.... more than fed up of seeing the airport!!!

Contract Issues with Flyjet Ltd and Estimated Losses for Breach

Contracted Passenger Numbers
Flyjet contracted to carry 233 passengers per flight with allowances of 5kg for hand luggage and 30kg for hold luggage. Due to weight & volume restrictions flights were unable to operate with more than 210 passengers and excess luggage had to go via infrequent cargo carriers.

Cargo Carrier & Excess Baggage
Despite requests from Ghana Travel Ltd Flyjet insisted on using their ?selected? cargo carrier although luggage was consistently lost and misdirected. Baggage revenues should have been shared between Flyjet and Ghana Travel Ltd

Payments in Ghana by GH travels on behalf of Flyjet
Under the agreement with Flyjet Ltd GH Travels paid in Ghana for Passenger Tax and Airport Costs (including staff) which would then be subtracted from the monies invoiced against Ghana Travel.

Flight Crew & Other Issues
Flight Crew travelled on aircraft taking up seats that should have been paid for by Flyjet.30 Flights x 8 pax at Avg price of ?408Flyjet policy to charge passengers for extra drinks and headphones led to GH travels reimbursement to maintain good will.

Flyjet Ltd Company Profile & History

Company Names Flyjet Ltd

Company Directors Shaun DeweyMike Hawkins

Managing Directors Shaun Dewey? UK born, well educated with many years experience in travel industry? Started Flyjet post Sept 11th when spotted opportunity in market to take advantage of downturn in industry

Company Background

  • Commenced trade in 2003 having negotiated a business deal to give a ?ground breaking? operational model.
  • Operations based on leasing 2 planes paid on an hourly rate (no flight no direct costs) so that most risk with leasing company.
  • Company overheads include a head office at Gatwick that is the base of operations.
2004 Operations
  • Flyjet agreed to operate a limited charter service to Accra for Ghana Travel, based upon their estimated demand for package tours.
  • When the increase in passengers occurred due to the failure of the Ghanaian national carrier then flights became filled predominantly with ?flight only? customers.
  • Flyjet realised re-negotiated their contract in November 2004 in recognition of their poor quality of service and failure to meet their contractual obligations to carry 233 passengers per flight (plus luggage).
  • Although it was agreed that passenger numbers were reduced to a maximum of 210 passengers (plus luggage) per flight their were continual quality of service problems regards left luggage, delayed flights and flights having to be diverted to refuel on route.
Problems
Flyjet is notorious for flight delays and cancellations in the UK since they started operations in June 2003 and has been ranked among the worst performers on the website www.flightontime.info? The planes Flyjet operate are basically cargo planes, which they have fitted with seats so that comfort is not really catered for tourist passengers, which has itself, resulted in some bad press on their charter holiday flights.The Ghanaian government are wanting carriers that can offer a product that will bring in tourists and other an new carriers are looking to enter the Ghanaian market. Flyjet must renegotiate the contracts with their leasing company in order to access more planes but market conditions have now improved and any new contract will be on less favourable terms than previously and so this is taking time. Flyjet have failed to file their accounts with Companies House so there is a question over their own financial future.

Questions That Remain Un-answered
1. Given their industry experience why did Flyjet sign a contract that they knew they could not full fill and would therefore create problems?2. Why did Flyjet not follow normal business processes to issue a claim for payment of debt, instead of bullying directors with threats of cancelled flights and demanding directors sign powers of attorney over the company?3. Why did Flyjet insist in their Heads of Agreement with Ghana Travel that at least $50,000 in cash per week be handed over to their representative at Ghana airport each Saturday to be transported on their planes out of Ghana?

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