Thousands stranded by XL collapse

The collapse of the UK’s third largest package holiday group has left tens of thousands of Britons stranded abroad.

The decision to place XL Leisure Group into administration has also left thousands of staff facing the axe.

Chairman Phil Wyatt said he was “totally devastated” by the failure which has grounded XL’s 21 planes. The company flies to about 50 destinations.

There are 67,000 stranded who booked directly with XL, and another 23,000 who booked via other companies.

The Civil Aviation Authority(CAA) also said the firm had 200,000 advance bookings.

‘Sad day’

CAA EMERGENCY HELPLINE Customers abroad: +44 (0) 2891 856547 Customers in the UK with advance bookings: 0870 5900927

“We’ve made every effort, myself and my fellow directors, to find new funding for the business – and it’s a very sad day for me personally. I am totally devastated,” XL chairman Phil Wyatt said.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 organize repatriation flights.

“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 Organizers’ Licensing (Atol) scheme and those customers will be offered repatriation flights or their money back if they have an advance booking.

Struggling

However, those who booked directly with the airline or XL.com – who are in the minority according to the CAA – will face a fee.

Anyone yet to take their flights should check their insurance policies, and with their banks or credit card companies about refunds, he added.

XL – which carried 2.3 million passengers last year – is the latest travel business to face financial difficulties, as the industry struggles with high fuel costs and an economic downturn.

But an agreement has been reached whereby Straumur investment bank has acquired XL’s German and French subsidiaries, which Straumur considers to be financially viable and sustainable businesses.

They will continue operations as separate commercial entities.

Share prices in holiday firms TUI Travel and Thomas Cook were up 6% and 7% following the collapse of their rival.

Economic downturn

“As the travel industry matures in Europe, there was always going to be pressure on those operating in the mid-market,” said Lastminute.com chief executive Ian McCaig.

A statement on the XL group’s website 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.”

XL COMPANIES XL Leisure Group XL Airways UK Excel Aviation Explorer House Aspire Holidays Freedom Flights Freedom Flights (Aviation) The Really Great Holiday Company Medlife Hotels Travel City Flights Kosmar Villa Holidays

BBC travel correspondent Tom Symonds added that the industry would be facing an “enormous challenge” as it deals with the fall out of XL’s collapse.

“XL wasn’t just an airline it was a fundamental link Britain’s package holiday industry,” he said.

“Getting these people to and from their holidays will be an enormous challenge not least because of the shortage of aircraft caused by so many airline collapses in recent weeks.

“XL can’t use its own airliners for among other reasons it has no insurance now.”

The CAA said it was working with the travel industry to bring stranded holidaymakers home, and denied it had been responsible for the grounding of XL’s planes.

Airlines BA, Easyjet, BMI, Flybe and Ryanair have offered to fly some of the stranded passengers home.

Easyjet chief executive Andy Harrison told that its fuel efficient planes had helped it cope with the high cost of aviation fuel although on Thursday it said it would cut up to 60 jobs to remain competitive.

Fuel pressures

Mr Wyatt added that spiralling oil prices had increased the firm’s costs “year-on-year by over $80m”.

“So where many people have been making hay with high oil prices, this is the repercussions of that hay – 1,700 people potentially out of work today in the UK,” he said.

Rival TUI warned that rising fuel costs meant that “airlines with less than robust business models” – such as XL and Futura – were now failing.

It added that the government should take steps to ensure all holiday companies must belong to the Atol scheme, which offers package holiday makers financial protection.

In the US, one flight from Orlando to Manchester managed to set off, while one bound for Gatwick was grounded. A source at the airport said accommodation was being found for the “distressed” passengers.

In the UK, air traffic control prevented three XL aircraft from taking off from Manchester Airport.

The XL group, which is based in Crawley, West Sussex, runs an airline and owns several travel companies, including Travel City Direct, Medlife Hotels Limited, The Really Great Holiday Company, Freedom Flights and Kosmar Holidays.

‘Going nowhere’

The company flies mainly from bases at Gatwick, Manchester and Glasgow airports.

Travel writer Simon Calder warned that many thousands of XL customers hoping to fly to the Caribbean, Mediterranean, North Africa and North America, from airports across the UK in coming weeks and days “simply won’t be going anywhere”.

Jim Duwaine, from Portsmouth, said he was given the news when he arrived at Gatwick where he had been due to catch an early morning flight to Menorca.

HELP OFFERED TO XL CUSTOMERS Flybe – offering flights for 90 euros (£71.50) BA– offering a one-way discount Easyjet– flights offered for £75 BMI – provided aircraft to CAA for transport people home Ryanair – has offered spare plane to CAA for transport

He said: “Absolutely devastated. Got up at midnight planning on going on holiday, but got let down, unfortunately. We’re here, just trying to get some other flights, but it’s not looking good. I think everyone else has got the same idea.”

Other holidaymakers have said they have been quoted vastly inflated prices for replacement flights.

Robert Spurgeon, of Norwich – an XL customer who had been due to fly to Tenerife from Gatwick – said: “We’ve not been told anything but my wife’s been quoted £2,000 for alternative flights.”

Also among those affected are a 130-strong choir on tour to Canada from Wales who were booked on Zoom and lost £50,000 when it folded last month, and then re-booked with XL.

XL is the current kit sponsor of West Ham United but football club said it would end the sponsorship deal and play on Saturday in an unbranded kit.

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Are you struggling to make your way home from your holiday destination? Have you paid for a holiday that you may not be able to take? If you were an employee of XL what are your views? Send us your comments

Three guilty of bomb conspiracy

Tanvir Hussain, Abdulla Ahmed Ali and Assad Sarwar were found guilty

Three men have been found guilty of a massive terrorist conspiracy to murder involving home-made bombs.

Abdulla Ahmed Ali, Assad Sarwar and Tanvir Hussain’s convictions follow a huge terrorism inquiry, which led to sweeping airport restrictions.

The three, on trial with another five men, had pleaded guilty to plotting to cause an explosion. Seven admitted plotting to cause a public nuisance.

The eighth man, Mohammad Gulzar, was cleared at Woolwich Crown Court.

The group had been accused of plotting to bring down transatlantic airliners with home-made liquid explosives, disguised as soft drinks.

But after more than 50 hours of deliberations, the jury did not find any of the defendants guilty of conspiring to target aircraft.

The jury was also unable to reach verdicts against four of the men in the six-month trial, all of whom were accused of recording martyrdom videos.

‘Inspired by al-Qaeda’

The court heard prosecutors allege that the eight men were planning to carry liquid explosives on to planes at Heathrow, knowing the devices would evade airport security checks.

Police said the plot had been inspired by al-Qaeda in Pakistan – and the August 2006 arrests caused chaos at airports throughout the country.

The court heard that the alleged plot could have caused unprecedented casualties, with a global political impact similar to the 9/11 attacks on the United States.

But in their defense, the seven men who had recorded videos denouncing Western foreign policy said they had only planned to cause a political spectacle and not to kill anyone at all.

The ringleader, Abdulla Ahmed Ali, 27, of Walthamstow, east London, created home-made liquid explosives in a flat which prosecutors said were designed to evade airport security.

He and five of the others – Ibrahim Savant, 27, of Stoke Newington, north London, and, from east London, Umar Islam, 30, of Plaistow, Hussain, 27, of Leyton, and Waheed Zaman, 24, and Arafat Waheed Khan, 27, both of Walthamstow – had recorded what the prosecution alleged were “martyrdom videos” denouncing the West and urging Muslims to fight.

Prosecutors said the bombers would then have completed and detonated the devices during their flights once all the targeted planes had taken off.

‘Political spectacle’

Sarwar was said in court to be the quartermaster of the plot, buying supplies needed to make the bombs.

Prosecutors said that Mr Gulzar, cleared by the jury, had flown into the country to oversee the plot’s final stages – something he vehemently denied during the trial.

The plot came to light after the largest ever surveillance operation involving officers from both MI5, the Metropolitan Police and other forces around the country.

Ali, Sarwar and Hussain told the jury they had wanted to create a political spectacle in protest over foreign policy. It would have included fake suicide videos and devices that would frighten rather than kill the public.

Ali, Sarwar and Hussain, along with Savant, Islam, Khan, and Zaman, also admitted conspiring to cause a public nuisance by making videos threatening bombings.

Zoom heads towards administration

The grounded plane was due to leave Glasgow Airport on Thursday morning

Transatlantic budget carrier Zoom Airlines has admitted it is applying to go into administration.

The announcement came after one of its planes was detained at Glasgow Airport on Thursday for non-payment of air traffic control charges.

UK-Canadian Zoom blamed its problems on the “horrendous” price of aviation fuel and the wider economic slowdown.

People due to travel on Zoom have been told to check their flight’s status.

‘Support and advice’

Zoom’s admission of financial difficulties came after BAA, the owner of Gatwick Airport, said it had been instructed by the UK’s Civil Aviation Authority to detain a Zoom plane that was due to fly to the Canadian cities of Halifax and Ottawa.

BAA said another Zoom flight from Glasgow to Vancouver had also been delayed.

“BAA is working with Zoom Airlines to provide support and advice for passengers,” said the airport company.

Meanwhile, a Zoom plane was grounded overnight in Calgary, Canada, a move also said to be in connection to overdue charges.

“Zoom Airlines Ltd based at Gatwick and Zoom Airlines Inc based in Ottawa, Canada, have sought creditor protection by filing legal notices of intention to appoint an administrator in both the UK and Canada,” said Zoom executive chairman Hugh Boyle.

He added that while Zoom sincerely apologised for those passengers affected by the grounded aircraft, its “flights will continue to operate”.

Zoom operates services from Glasgow, Gatwick, Manchester, Cardiff and Belfast International airports a well as from European airports to a number of North American destinations.

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US airline ‘broke safety rules’

American Airlines has joined forces with British Airways

US aviation officials are accusing American Airlines of major breaches of safety, including intentionally flying planes known to need repairing.

The Federal Aviation Administration (FAA) wants to fine the company a total of $7.1m (£3.8m).

An FAA statement said two MD-83 planes were used on dozens of flights in 2007, even though repair work reported as necessary by pilots had not been done.

Problems with drug and alcohol testing were also found, officials say.

The FAA statement comes hours after British Airways confirmed it had sealed an alliance with American Airlines, allowing the two carriers to agree fares, routes and schedules together.

The alliance also includes Spain’s Iberia, which is merging with BA.