Holiday plans in tatters after XL airline folds

Sep 13 2008 by Dan Warburton, The Journal

MORE than 2,000 North East holidaymakers were stranded abroad yesterday after the collapse of a major tour operator.

Flights were grounded and the travel plans of passengers in tatters after the XL Leisure Group announced it was going into administration after failing to secure a rescue package.

There were queues at terminals across the country, and angry scenes were witnessed at airports in Gatwick, Manchester and Glasgow.

The company, which flies to 13 destinations from Newcastle International Airport, has blamed the rising cost of fuel prices and the credit crunch for its collapse.

However, XL was reported to have continued accepting payment from customers until as late as midnight on Thursday.

Flights from Newcastle to Skiathos in Greece and Tenerife were cancelled yesterday, and seven flights will remain grounded over the weekend.

Kenny Brown, 61, was forced to spend more than £50 on a 120-mile taxi ride from Glasgow to Newcastle in a bid to save his week-long holiday to Tenerife.

Once inside Newcastle Airport, he then had to fork out more than £1,200 for new tickets.

Mr Brown, an electrician, was travelling with his wife Helen and another couple, Hugh and Cathie Boyd.

Yesterday he said: “We feel quite fortunate because there are some families who save all year and wouldn’t be able to afford replacement tickets. But there’s no guarantee we will even get our money back. They must have known they would be getting in difficulties but they just kept selling tickets.”

Graeme Mason, head of planning and corporate affairs at Newcastle Airport, said the news had come as a complete shock to everyone.

He added: “It’s a nasty surprise. It’s thought there are around 2,000 people overseas waiting to come back and they will be dealt with by the Civil Aviation Authority Air Travel Organisers’ Licensing (Atol) scheme.

“Not everyone will have that protection. Those who paid on their credit cards will be fine, but those who paid by debit card may not be protected.

“We are hugely sympathetic to the customers who have been impacted. It is distressing for us to see our partners in this position.

“Our outlook remains positive – we are a robust airport with a wide range of airlines which are continuing to operate.”

The collapse sparked a large-scale operation by the Civil Aviation Authority and other travel companies to help stranded holidaymakers.

But while administrators Kroll said customers who booked packages with the group’s tour operators were protected by the CAA’s ATOL scheme, people who booked flights direct with XL Airways could lose their holidays and their money.

XL Leisure Group chief executive Phil Wyatt said he was devastated at the company’s collapse and apologised to his customers and employees.

Speaking at a Press conference he admitted the company had debts of £143m but insisted it did not have to fail.

Meanwhile, Barry Merritt, 44, of Westerhope, Newcastle, was due to fly out to Tenerife last night, but after hearing the news he rushed to the airport to try and find a replacement for his £200 ticket.

He said: “The accommodation is already booked, so I was hoping to just pay for another ticket to get out there as soon as possible.”

A helpline has been established for customers who have purchased flights directly from the UK group. Customers abroad should call +44 208 242 4783.

Customers calling from within the UK should call the free helpline (0800) 068- 8991.

How to claim your money back

IF you paid for your flight with a credit card, then you can claim the money back from your card provider under Section 75 of the Consumer Credit Act.

This covers all purchases from £100 to £30,000.

If your flight was part of a package holiday or booked through an Atol-bonded agent then you can claim the money back from the tour operator you booked through.

If you have been left stranded by the cancellation of your flight, then it is the tour operator’s responsibility to make alternative arrangements for you.

And if you have travel insurance, then you should check your policy as some cover the loss of scheduled flights.

However, if you paid for your flight with a debit card then contact your current account provider.

They will then attempt to recover the money for you.

Cancelled flights

(FROM NEWCASTLE INTERNATIONAL AIRPORT)

YESTERDAY

Departing

Skiathos 8.45am

Tenerife 7.50pm

TODAY

Arrivals

Tenerife 5.55am

Dalaman 4.55pm

Departures

Dalaman 7am

Rhodes 6.05pm

SUNDAY

Arrivals

Rhodes 4am

Zakynthos 1.30pm

Kefalonia 11.05pm

Departures

Zakynthos 5am

Kefalonia 2.30pm

Facts and figures

:: The XL Leisure group flies around 50,000 passengers out of Newcastle each year.

:: The tour operator flies to 13 destinations from Newcastle International Airport, mainly Mediterranean hotspots including Skiathos, Paphos and Corfu.

:: The company employs 33 members of staff from across the North East, including cabin crew and pilots.