News: XL go into administration
|
|
Flights > News > # 1883 (12/09/2008)
The UK’s third largest tour operator, XL, has gone into administration, leaving thousands of British holidaymakers stranded abroad.
The XL Leisure Group, which operates XL airlines, flies to 50 destinations, mainly in the Mediterranean.
All its flights have now been cancelled and its aircraft grounded.
The Civil Aviation Authority (CAA) said 85,000 people could be stranded abroad and a further 200,000 have made advance bookings with the company.
The CAA said it was taking measures to help customers of the four tour companies within the XL group.
A CAA spokesman said: "In respect of people who are currently abroad we're making arrangements and working very closely with the travel industry to organise repatriation flights.
"Clearly though, with XL Airways no longer operating, we're having to bring in substitute aircraft to bring people home."
He said package deals are covered by the CAA's Air Travel Organisers' Licensing (ATOL) scheme and those customers will be offered repatriation flights or their money back if they have an advance booking.
However, those who booked directly with the airline or XL.com - who are in the minority according to the CAA - will face a fee.
He advised those with future flights to check their insurance policies, and with their banks or credit card companies about refunds.
The group is the latest travel business to face financial difficulties, as the industry struggles with high fuel costs and an economic downturn.
A statement on the XL group's website said: "The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding."
Rival holiday firm TUI warned that rising fuel costs meant that "airlines with less than robust business models" - such as XL - were now failing.
It warned that the Government should take steps to ensure all holiday companies must belong to the Atol scheme, which offers package holiday makers financial protection.
Add to:
Related Airports:
