Director of failed travel agency believed to have absconded

The director of a failed travel agency being investigated by the Civil Aviation Authority is believed to have absconded to India.

Amit Shenoy, who was the sole director of Wembley-based Shenoy & Co trading as Reliable Holidays and Economy Travels, is being pursued for more than £770,000 following the collapse of his business.

Shenoy held a Small Business ATOL and was licensed to carry up to 500 passengers a year, but the CAA withdrew its licence last November following complaints from customers who had not received their tickets.

It discovered after the company went into administration in December that at least 724 passengers required refunds, which the CAA said was strong evidence the company had overtraded its ATOL. It had provided a bond of only £10,000 yet the CAA expects to pay out refunds of £782,340, leaving the Air Travel Trust Fund to pay the remaining £772,340.

Additionally the company, which also sold flights as an agent of airlines, operated a trust account but the CAA said this was found to contain "substantially less than expected".

"The CAA, on behalf of the Air Travel Trust, is therefore investigating all options to pursue recovery of the Trust's expenditure."

The administrator Re10 said there was no prospect of Shenoy's creditors receiving any money from the failed company and that the director may have absconded to India. Its final report has been sent to creditors and to the High Court.

Shenoy was one of the most expensive of the 23 ATOL failures last year for the Air Travel Trust Fund, which paid out a total of just over £14m compared with just over £48.5m the previous year.

The single most expensive collapse was Holidays 4UK, which cost the Trust £7.2m.

Thursday, July 26, 2012