More than 500 British visitors were struck at different places in the Balearic Islands yesterday, after the XL leisure Group, Britain’s 3rd largest holiday company, following TUI Travel at first place and Thomas Cook at the second, went into administration. This move caused more than 80’000 holiday makers being struck at different destinations. XL leisure operated 4 flights every week between Palma and the UK and one between Minorca and Gatwick. Yesterday, the flight between Minorca and Gatwick was scheduled to take off at 8.50am but the passengers were later transferred to another flight that took off for Mahon at 14.30.
On its official website, XL stated that they are not able to cope up from the economic downturn, volatile fuel prices and low funding. Its companies include The Really Great Holiday and Kosmar Villa Holidays.
Alastair Beveridge, Simon Appell, Nick Cropper and Stuart Mackellar were appointed the joint administrators. XL said that they cannot continue trading and hence, all flights had been cancelled immediately and the aircraft were also grounded. Further, they said that the joint administrators might not be able to continue trading this business or operating the aircraft.
XL advised all those passengers who didn’t begin their journeys yet, to make other possible arrangements. Those who booked package holidays with XL will have reimbursed the cost of the return journey through a scheme of the Civil Aviation Authority of Britain, but the passengers who booked flights only do not come under this scheme.
Europe’s largest travel company, TUI Travel, said that it will help XL’s customers struck at different places abroad in coming back home to the UK. Peter Long, the CEO of TUI Travel, criticized the unpredictability in protection for such holiday makers. He said that although they would help wherever possible, it is for the government to realize that a level field is to be provided for all players in this market. He said that most holiday makers think that they will get the necessary protection if any problem arises, but this does not usually happen.
This week, Europe’s largest independent medium-haul charter company, Palma-based Futura International, also went into administration, as a result of which British firm Seguro Holidays had to cease operations.
XL had gone through a management takeover in recent years. The shares in TUI were 4.1% higher at 230-3/4 pence at 3:05am EDT, and Thomas Cookwas up by 3.5% to 243-1/4 pence, with investors expecting them to take advantage of the reduced competition in the market.
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