1. kkv.fi Insolvency Protection – Experiences in Finland and the proposed new Package Travel Directive Petteri Lehtonen

2. kkv.fi Proposed new Package Travel Directive  Key points to the definition − Defined definition of the ”old” package − Proposed ”assisted travel arrangement” − Business travel  Key points to the Insolvency Protection − Effective and prompt refund of all payments and travelers repatriation − The required insolvency protection should take into account:  Actual financial risk of the activities of the organiser, including the type of combination of travel services they sell;  Foreseeable seasonal fluctuations and  Extent of pre-payments and the way in which these are secured. − Mutual recognition of insolvency protection and administrative cooperation (Internal Market Information System)

3. kkv.fi Proposed new Package Travel Directive  The proposed definition is as wide as elephant´s behind?  It would be impossible to implement the proposed insolvency protection with individual guarantees (Finland, Sweden, Austria, and Hungary?) − This sort of a system needs clear definition; − Most of the time slow refund of prepayments and − 100 % refund is not sure.  Most members states that are using individual guarantees would need to rethink their systems − Most likely some sort of full fund or part fund part individual guarantees  A big improvement for travelers’.

4. kkv.fi Case Air Finland  Air Finland was declared bankrupt 26th of June 2012 late at the evening. − This was the first bigger organiser bankruptcy that we didn´t have any pre notice.  We got the news at the same time as did the travelers’. − Second biggest travel organiser bankruptcy in Finland. − Approx. 3 000 applications for refund.  We had just launched our new electronic form to claim refund.  Claims were handled within 6 months from the bankruptcy (only one handler).  Refund are not paid before all the appeals have been dealt (this will take years)  The guarantee only covers approx. 70 % of the claims.

5. kkv.fi Case Air Finland

6. kkv.fi Case Air Finland  Over 1 000 travelers’ abroad that needed repatriation.  Alanya (309 pax, 28th of June)  Rhodes (205 pax, 28th of June)  Chania (212 pax, 28th of June)  Heraklion (162 pax, 28th of June)  Malaga (83 pax, 28th of June)  Alicante (40 pax, 28th of June)  Hurghada (54 pax, 3rd of July)  3 of the biggest travel organiser cooperated by arranging the ground transportation at the destinations (dozens of busses).  Most of the travelers’ were home two days after the bankruptcy.

7. kkv.fi Thank you