Tilley Posted 12 September 2008 Posted 12 September 2008 Tens of thousands of Britons are stranded abroad after the country's third largest package holiday group went into administration. The XL Leisure Group, which operates XL airlines, flies to 50 destinations, mainly in the Mediterranean. All its flights have now been cancelled and its aircraft grounded. The Civil Aviation Authority (CAA) said 85,000 people could be stranded abroad and 200,000 have made advance bookings with the company. David Clover, a spokesman for the CAA, said it was making arrangements to help customers of the four tour companies within the XL group. "In respect of people who are currently abroad we're making arrangements and working very closely with the travel industry to organise repatriation flights. Stranded passengers voice their frustration "Clearly though, with XL Airways no longer operating, we're having to bring in substitute aircraft to bring people home." He said package deals are covered by the CAA's Air Travel Organisers' Licensing (ATOL) scheme and those customers will be offered repatriation flights or their money back if they have an advance booking. However, those who booked directly with the airline or XL.com - who are in the minority according to the CAA - will face a fee. He advised those with future flights to check their insurance policies, and with their banks or credit card companies about refunds. XL In Admin. Hope no one on here has booked to go away with this company.
Darkzzz_ Posted 12 September 2008 Posted 12 September 2008 It's a holiday firm?? I thought it was just a new way to advertise shirt sizes??
Dr The Singh Posted 12 September 2008 Posted 12 September 2008 I nearly booked our holiday with them, phew!!!
Bellend Sebastian Posted 12 September 2008 Posted 12 September 2008 It's obviously shit when any holiday firm gets into trouble, but this is surprising because this is a big company. Makes you wonder if any other established names will be going tits up. Things is difficult, for sure
James. Posted 12 September 2008 Posted 12 September 2008 What must be frustrating is that no warning was given. Flights were operating normally and then BAM every flight grounded. Doesn't seem right to me. It's not like XL suddenly realised they had no money, they would have seen this coming.
andyh1884 Posted 12 September 2008 Posted 12 September 2008 A couple of people from work are due to go out on XL holidays next week, needless to say they're not particularly happy at the news. It seems no-one had any warning this was gonna happen - holidaymakers & XL employees alike - which does make it a little odd. I wonder if they've been taking bookings for package holidays/flights in the last couple of days. If they have, there could be some comeback over that cos they definitely shouldn't have been taking people's money off in the last week or so if people at the top knew this was coming. Still, they'll probably get round the issue of unlawful trading somehow, most of these big companies usually do.
Bellend Sebastian Posted 12 September 2008 Posted 12 September 2008 What must be frustrating is that no warning was given. Flights were operating normally and then BAM every flight grounded. Doesn't seem right to me. It's not like XL suddenly realised they had no money, they would have seen this coming. Well, that's what generally happens in these cases unfortunately. You don't advertise when you're in the shit as they try and keep things going until there's no choice. If you let everyone know you're in trouble then your suppliers pull the plug and your cash flow halts as no one places orders with you and the likely becomes the inevitable, whereas if you keep things going there's a possibility you might get out of it. It's shit for punters and suppliers, but that's business for you. One of our clients was telling us a couple of days ago how much she was looking forward to her holiday next week, and we've just discovered that it was booked through XL. Ouch
James. Posted 12 September 2008 Posted 12 September 2008 Well, that's what generally happens in these cases unfortunately. You don't advertise when you're in the shit as they try and keep things going until there's no choice. If you let everyone know you're in trouble then your suppliers pull the plug and your cash flow halts as no one places orders with you and the likely becomes the inevitable, whereas if you keep things going there's a possibility you might get out of it.It's shit for punters and suppliers, but that's business for you. One of our clients was telling us a couple of days ago how much she was looking forward to her holiday next week, and we've just discovered that it was booked through XL. Ouch Yeah I understand why they didn't tell anyone but I think there is probably a good case for regulators to introduce some kind of measures to give customers prior warning. I have no idea how this would work (it probably wouldn't!!!) but XL would have known weeks if not months ago that this was going to happen. The key issue here seems to be that XL was a private company and so it is not required to publicise accounts or release public statements to its shareholders. Had it been listed there wouldn't have been the same impact.
JoeyB Posted 12 September 2008 Posted 12 September 2008 THe French and German section of the business are running properly still, must be the english firm thats fooked up. Im off to Egypt with them at Christmas, but i booked through "onthebeach.com" and we were originally meant to go out with Thomas Cook, so i think that, we will still be going out with Thomas cook, as they only contracted us out...........
Tommy G Posted 12 September 2008 Posted 12 September 2008 Unless you've got holiday insurance that covers business liquidity then I think you'll be screwed for getting your money back
The People's Hero Posted 12 September 2008 Posted 12 September 2008 Unless you've got holiday insurance that covers business liquidity then I think you'll be screwed for getting your money back I'd have thought that any holiday/travel cover with a 'cancellation' (by operator) cover will sort you out, unless it's named as an exclusion. What will happen otherwise? Will they become creditors?
Tommy G Posted 12 September 2008 Posted 12 September 2008 I'd have thought that any holiday/travel cover with a 'cancellation' (by operator) cover will sort you out, unless it's named as an exclusion.What will happen otherwise? Will they become creditors? To be honest, I'm not too worried. I feel sorry for the people that are in the shit, I don't know the ins and outs of insurance claims hense I used the word think
Jay Posted 12 September 2008 Posted 12 September 2008 Unless you've got holiday insurance that covers business liquidity then I think you'll be screwed for getting your money back putting on my ex travel agent head technically that is as wrong as you could be. Subsidiaries of Excel Airways for example Freedom Flights, Kosmar, The Real holiday company etc are covered by the ATOL trading license which means that you are covered in the event of the company folding like this so therefore you will have to claim through ATOL to obtain a refund but you will receive a FULL refund. For Tour operators that have taken allocations on Excel flights and have added them to their own packages then they will probably simply take an allocation on another airline. IF you have booked direct through XL.com then you are not bonded by ATOL but if you have paid with a credit card you will be covered. If you have booked by direct debit card online to XL.com then you are f**ked and will have to puut your name down as a creditor and get nothing back
andyh1884 Posted 12 September 2008 Posted 12 September 2008 I'd have thought that any holiday/travel cover with a 'cancellation' (by operator) cover will sort you out, unless it's named as an exclusion.What will happen otherwise? Will they become creditors? To be honest, I'm not too worried. I feel sorry for the people that are in the shit, I don't know the ins and outs of insurance claims hense I used the word think Oh dear lord Tommy. I don't think TPH was having a go, he was just providing a bit more info to your post. Not only that, but I believe the bottom part of his post was even asking for your accounting opinion. To which the answer is that these poor souls not covered by insurance/credit card payment stuff will fall under the 'unsecured creditors' banner and will therefore get the square root of fork hall when the remaining funds are dished up as pretty much any available cash will go to employees & secured creditors ie any that have charges over the company's assets (and even these secured ones might not get their cash)
Benji Posted 12 September 2008 Posted 12 September 2008 I'd have thought that any holiday/travel cover with a 'cancellation' (by operator) cover will sort you out, unless it's named as an exclusion.What will happen otherwise? Will they become creditors? I'd have thought so, bottom of the pecking order creditors at that AKA fk all, although from the sounds of the above they'll all be refunded fine
lookwhaticando Posted 12 September 2008 Posted 12 September 2008 What must be frustrating is that no warning was given. Flights were operating normally and then BAM every flight grounded. Doesn't seem right to me. It's not like XL suddenly realised they had no money, they would have seen this coming. They, as Zoom just recently, and countless others before them, were attempting to secure financing right up until the early hours of this morning. They had hoped that they'd get the cash infusion they needed to continue operating - the funding didn't materialize so they threw in the towel. Nobody wins in situations like these... if you warn people there may be trouble ahead, then you're digging your own grave anyway. The only semi-plausible route would be to oblige such companies to keep a reserve that would allow them to operate for a certain period after calling in the administrators. Even that's a bit hopeful and not likely to be very successful in practice. Unless you've got holiday insurance that covers business liquidity then I think you'll be screwed for getting your money back If you booked a holiday, rather than just flights, you can get a refund through ATOL. Ditto if you booked through a travel agency... you have options. All is not lost - there's options for just about everyone, except for those who booked just flights and paid XL directly with cash or a cheque.
dandannieldanok Posted 12 September 2008 Posted 12 September 2008 Feel really sorry for the passengers and the employees but there isn't much that can be done unfortunately, you've got to roll with the punches.
lavrentis Posted 12 September 2008 Posted 12 September 2008 Quite sad all these companies going out of business because of the god damn oil prices.
lookwhaticando Posted 12 September 2008 Posted 12 September 2008 Peak Oil is a good excuse, but isn't always the sole nor the biggest reason for a company to fail.
JoeyB Posted 12 September 2008 Posted 12 September 2008 Peak Oil is a good excuse, but isn't always the sole nor the biggest reason for a company to fail. IT is in the airline industry
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