TALKS BETWEEN Budget Travel and the aviation regulator in a bid to resolve a dispute over the renewal of the tour operator’s licence have not yet “produced results”, the High Court was told yesterday.
Budget, the State’s largest tour operator, claims the Commission for Aviation Regulation is placing “unreasonable and unlawful preconditions” on renewal of its licence, with the result its ability to run the business is in jeopardy.
The company took High Court proceedings last week aimed at forcing the commission to renew its licence. The matter was adjourned until yesterday to allow discussions to take place.
Budget says it is operating as normal despite the fact its licence expired on October 31st. Passengers remain protected by the normal travel bond which the company has lodged as part of its operating licence. Budget has lodged a bond of €11 million and claims that is €4 million more than required under the relevant law, due to its reduced turnover.
The High Court heard yesterday that the company was continuing to trade but wanted an early hearing of its proceedings.
Niamh Hyland, for the regulator, said discussions took place over the weekend but had “not produced results”. They were seeking another adjournment for a week to reply to Budget affidavits.
Kirby Tarrant of O’Grady solicitors, for Budget, asked for the matter to be listed with a view to the hearing going ahead next week.
Mr Justice John Hedigan adjourned the case for a week.
Budget has claimed the regulator’s actions, including failure to accede to its request to return €4 million of its €11 bond, are jeopardising its business and the livelihoods of its 189 employees.
Budget’s parent company, Scandinavian-owned Primera, provided a letter of comfort, as sought by the regulator, saying it would maintain its 100 per cent share as long as any bond was outstanding and would ensure Budget was in a position to meet its obligations.
The regulator told Budget, in a recent e-mail, that once certain requirements were met, its application “will be deemed complete and sufficient to conclude the process with the issue of your new licence”.