XL Leisure Group in administration
XL Leisure Group, the UK’s third largest tour operator, went into administration early today leaving the holiday plans of thousands in tatters.
The West Sussex-based company had 85,000 holidaymakers abroad and 200,000 forward bookings, according to the Civil Aviation Authority.
All flights were immediately cancelled and aircraft grounded. XL had a fleet of 21 aircraft.
A message on the group’s website said the group had entered administration as a result of volatile fuel prices, the economic downturn and a failure to obtain additional funding.
Chairman Phil Wyatt said the company’s costs had gone up by $80 million year on year due to rising fuel prices.
The failure is the biggest to hit the travel industry since ILG in 1990 and follows Cheshire based operator Seguro Holidays ceasing trading earlier this week and the collapse of airlines such as Zoom and Silverjet.
Besides charter airline XL Airways, XL ran the tour operating brands TravelCity Direct, Kosmar, Aspire, Medlifehotels and Freedom Flights, the UK’s largest flight-only firm. The group employed 1,700 people worldwide and carried 2.3 million passengers last year.
A separate North East-based company operating under the Freedom Flights brand is not affected.
Joint XL administrators Alastair Beveride, Nick Cooper, Simon Appell and Stuart Mackeller from Leeds-based Kroll said they were “unlikely to be able to trade the business or operate the aircraft”.
Holidaymakers away on ATOL-bonded package holidays should be able to complete their holidays with the CAA arranging flights home.
But those who booked flights only are not protected along with those booked through Medlife Hotels.
A CAA statement said: “The Civil Aviation Authority and the travel industry are working together to protect customers of the XL Leisure Group UK (XLUK) after it ceased trading.
“The CAA estimates that there are 50,000 tour operator customers of XLUK abroad, and a further 10,000 abroad with XL Airways, and 25,000 with other tour operators who shared the XL flights. A further 200,000 customers have advance bookings with the XL tour operators.
“The CAA will make arrangements for those customers currently abroad who booked their holiday or flight with an ATOL tour operator to complete their holidays and fly home.
“All future departures with the XLUK tour operators and XL Airlines have been cancelled.
“Customers due to travel from the UK are advised not to go to their departure airport.
“Tour operator customers will be able to claim a full refund from ATOL.”
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by Phil Davies
Phil Davies
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