Astonishing revelations in the Adelaide Advertiser newspaper yesterday concerning Champion Travel, a corporate and sports-related travel agency, said the agency had just AUD 57 in the bank when it collapsed with debts of almost AUD 1.6 million.
The Advertiser quoted a report by liquidator BCRAdvisory’s Stephen James, which it said showed total assets of AUD 57 compared with total liabilities of AUD 1,583,572. It quoted James: “At the current time there is not expected to be sufficient funds to pay a dividend to secured or unsecured creditors”.
The report said unsecured creditors included the Sheraton Grand Mirage Resort (AUD 70,932), Le Meridian Phuket Beach Resort (AUD 58,636), Magellan Travel (AUD 118,250) and Drake Supermarkets’ parent company The Fourth Force (AUD191,900).
Earlier this year, the same newspaper reported that Champion Travel clients who had paid for travel, suddenly got no response to their phone and email inquiries. Clients discovered the company had ceased trading only when they went to the premises and found it boarded up.
Champion Travel & Tours (ABN: 60264035076) was one of several ATAS participants that had their ATAS accredited status cancelled by AFTA in April for failing to renew or demonstrate that they met the eligibility criteria.
As of yesterday, a statement still showing on the Champion Travel website (http://www.championgroup.com.au/about-us.html) contained elements that appear to be obsolete, to put it mildly, though the date at the bottom of the web page is 2018.
The website statement reads:
Fully Licensed
Champion Travel is a member of the Australian Federation of Travel Agents (AFTA), The International Air Transport Association (IATA) and the Australian Government operated Travel Compensation Fund (TCF). As a member of TCF, all client monies are fully protected and government guaranteed.
The collapse is likely to renew pressure on authorities to tighten up regulations to protect consumers from such debacles. The Travel Compensation Fund, long since defunct, would have provided that protection.
MEANWHILE, an entirely separate travel company in South Australia, the highly reputable and long-established agency, Axis Travel, is emphasising consumer protection in its advertising in the state.
Axis, run by well-known and respected industry figure Max Najar, has been trading for 40 years. Axis points out in its radio advertising that it has a Booksafe Security Umbrella.
“With Axis Travel’s exclusive Booksafe Security Umbrella, you’re protected against default of an airline, cruise or supplier,” its radio commercials tell consumers. That assurance helps promote customer confidence and peace of mind. Even though airlines or suppliers may raise their eyebrows.
Najar commented yesterday, in the wake of the dire report on Champion Travel, that the industry needs to get consumers’ trust. “And if that means we establish insurance layers that are better than anything that an airline or supplier has, or even another agency network, then we should do so and say so”.
Written by Peter Needham
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