Refund delay for hundreds of holiday makers
Sep 12 2009 by Dan Warburton, The Journal
A TOUR operator from the North East is at the centre of a company collapse that left hundreds of holiday makers out of pocket.
Thousands of sun-seekers had their breaks ruined by the collapse of the airline XL and many have not received refunds because they failed to apply for compensation correctly.
The Civil Aviation Authority said passengers across the North East will be worst hit because the majority of outstanding claims are from customers of the Newcastle-based Freedom Direct organisation.
The tour operator went to the wall 12 months ago at the same time as its sister company XL Airways went bust, leaving more than 2,000 Tyneside holidaymakers stranded overseas.
Overseas package tour passengers are covered under the Air Travel Organisers’ Licensing scheme.
But those eligible for refunds should have made their claims by the end of yesterday if they wanted to recoup the cash. The organisation responsible for issuing the refunds, the Civil Aviation Authority, said some payments had been delayed because of incomplete claims.
The CAA said: “We appreciate the inconvenience experienced by those claimants that have not yet received a refund. We do apologise for the continuing delay in making settlements.
“The majority of outstanding claims are in respect of Freedom Flights (booked through the now-defunct Freedom Direct Holidays) bookings. Here delays have been caused by incomplete claims where original booking documents, including ATOL receipts, issued by travel agents, have not been sent in with claims.
“These documents are crucial in validating a claim and establishing the amount that should be refunded. Consequently, a claim cannot be assessed until these are provided. We are reviewing all outstanding claims, writing to claimants where this information is missing.”
Flights from Newcastle Airport were grounded last September and thousands of passengers’ travel plans left in tatters after the XL Leisure Group announced it was going into administration after failing to secure a rescue package. The company flew to 13 destinations from Newcastle International Airport, but blamed the rising cost of fuel prices and the credit crunch for its collapse.
But there was anger when it was reported XL was continuing to accept payment from customers until the day before its collapse.
It is thought around 10,000 holidaymakers have yet to get their money back after the company, which was once the UK’s third largest package holiday, fell into administration.
Rules state anyone eligible for a refund must make a claim within a year of the collapse of the company. A CAA spokeswoman said: “The CAA will not accept claims arising from the failure of the XL Leisure Group after 11 September 2009.
“If you have still to submit a claim, you should ensure you do so before this deadline.”
