Tour operator XL goes bust
Holidaymakers have been left stranded after tour operator XL Leisure Group went into administration and grounded all flights.
The news affects an as-yet unknown number of Irish holidaymakers. One flight was due to depart from Dublin airport for Greece this morning, but did not. Another was due to fly our later.
XL operated routes, including to the Greek Islands, from Dublin and Cork, with some flights from Knock.
A press conference will be held at 9.30am today at which further details of the administration are expected to emerge.
XL Airways, which is the UK's third-largest tour operator after First Choice and Thomas Cook, declared bankruptcy early today having failed to secure a rescue package amid deep financial difficulties.
In a statement on its website, the group said it had been hit by rising fuel costs and the credit crunch. It said all its flights have been cancelled and its fleet of aircraft is now grounded. It advised passengers with advance bookings not to go to their departure airport.
Irish travellers have been advised to seek information on the Aviation Regulator's website www.aviationreg.ie.
XL Airways provides flights to more than 50 destinations across Europe, America and Africa.
Passengers yet to travel should make alternative arrangements, while those already on holiday will be brought home on other flights, the statement said.
Customers who booked through four tour operators – The Really Great Holiday Company, Kosmar Holidays, Freedom Flights, and Aspire Holidays – are protected under the Air Travel Organiser’s Licenses (ATOL) scheme, it said.
However, those who booked direct with an XL Group company are urged to contact ATOL immediately.
The statement said: “The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding.
“The joint administrators cannot continue trading the business and therefore all flights operated by the companies have been immediately cancelled and the aircraft grounded.
“Going forward, the joint administrators are unlikely to be able to trade the business or operate the aircraft.”
XL’s demise is the latest blow to the travel industry and follows the collapse of budget airline Zoom last month.
Thousands of transatlantic passengers were left stranded after flights to and from Canada and the US were grounded as it called in the administrators.
Zoom blamed its financial woes on a jump in fuel bills as a result of the high cost of oil.
It is estimated there are 50,000 customers abroad who had booked through an XL tour operator, 10,000 on holiday 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.
