Friday 12 September 2008

UK’s 3rd Largest Tour Operator Collapses But Where Do The Passengers Stand?


In the early hours of Friday, 12th September 2008, XL Leisure Group based in Crawley, Sussex announced that they had called in the administrators. The group, who operated holidays to 50 destinations and employed 1,700 people world wide, collapsed with debts of around £143m stranding 67,000 passengers who were already overseas and will result in another 200,000 passengers with advanced bookings, to lose their holidays.

The following companies which make up the XL Leisure Group are all in administration:

XL Leisure Group Plc, XL Airways UK Limited, Excel Aviation Limited, Explorer House Limited, Aspire Holidays Limited, Freedom Flights Limited, Freedom Flights (Aviation) Limited, The Really Great Holiday Company plc, Medlife Hotels Limited, Travel City Flights Limited, Kosmar Villa Holidays plc.

The following companies held ATOL Licences:

The Really Great Holiday Company, Kosmar Villa Holidays PLC, Freedom Flights Ltd, Aspire Holidays Ltd.

Unfortunately, not all of the 67,000 passengers who are stranded abroad will receive help. For more details, XL customers should refer to the group’s website – www.xl.com

  • Anyone who booked via an ATOL or ABTA bonded Travel Agent or Tour Operator will be covered by the CAA (Civil Aviation Authority) who will eventually get them home
  • Anyone who has booked direct with XL Holidays will probably not be covered unless they have insurance or used their credit card.
  • Anyone who paid by credit card will probably be covered but should check with their bank
  • Anyone who has travel insurance will probably be covered by should check with their insurance company
  • Anyone who has paid by debit card probably won’t be covered but should check with their bank.

Of the 67,000 passengers who are currently abroad, around 10,000 are not covered and will have to make their own way home. Under terms of the administration order, XL are not allowed to send their planes abroad to bring back their passengers. The CAA are working with Thomson and First Choice to bring home the passengers but as XL Group Chairman Phil Wyatt said at a press conference, bringing 67,000 passengers home is a huge task.

Now, there is no denying, when it comes to travel, we all love a bargain. Even saving a few pounds makes us feel somehow better about our travel. However, like people who don’t always see the need for fully comprehensive car insurance, when you come to need help, it’s usually a time for regret.

It is in unfortunate times like this that the true value of using an ATOL or ABTA bonded travel agent such as Explorer Travel comes to light. Consumer protection is often unclear and when booking out holidays, we are more concerned with facilities at the hotel or how far it is to the beach rather than thinking about what happens if the airline goes bust.

Around 26 airlines have gone bust in the last year or so and with oil prices still over $100 a barrel, it is unlikely that XL Group will be the last company to collapse. British Airways Chairman, Willie Walsh said that there are a lot of “weak” airlines struggling to remain in the business  and that some of them will not survive. With this thought in mind, people really should be paying more attention to the company or airline they are planning to travel with rather than getting the cheapest ticket possible. Going for the cheapest option may well turn out to be the most expensive option.

As I was writing this article, it was not lost on me that just 3 weeks ago, my family and I were on an XL flight coming back from Sharm el Sheikh in Egypt. I had booked the flights direct with XL using a debit card so it could well have been a bad experience for myself and my family.


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2 comments:

Flights to Luanda said...

How beautiful it is to do nothing, and then rest afterwards.

iffatali said...

The traveler was active; he went strenuously in search of people, of adventure, of experience. The tourist is passive; he expects interesting things to happen to him. He goes "sight-seeing. Flights to Dar Es Salaam