News & Current Affairs

September 12, 2008

Fears for package holiday firm XL

Fears for package holiday firm XL

Spanish beach

Tour operators have been hit by soaring fuel costs

Package holiday firm XL has filed for administration after experiencing financial difficulties, reports say.

The firm is Britain’s third biggest tour operator and flies to 50 destinations, mainly in the Mediterranean and the Caribbean.

XL is the latest travel firm to face financial difficulties as the industry struggles with sky-high fuel costs and an economic downturn.

Low-cost transatlantic airline Zoom collapsed last month.

A Civil Aviation Authority spokesman said the company currently continued to hold a license to operate as a tour operator and commercial airline.

He said: “It has not been confirmed to us that XL have filed for administration.”

Financial protection

The carrier had already cancelled its schedule of flights to the Caribbean.

If the firm were to collapse, package holidaymakers would be protected under the Atol scheme, a financial protection package.

Administrators might be able to help the company continue.

“But many companies have gone into administration and not survived, it’s a sign there is severe problems with the company’s accounts,” he said.

“Other airlines who have had similar problems have had aircraft impounded.”

If the news is true, it is a major, major thing for the industry
Bob Atkinson, Travel Supermarket

Travel writer, Simon Calder, described XL’s airline operation: “A pretty large airline with 21 aircraft, [it] flies all over the world, the Caribbean; Mediterranean; North Africa and North America, from airports across the UK.

“It does most charter work, but also quite a lot of – effectively – no-frills, scheduled work.”

Bob Atkinson, of the price comparison website Travel Supermarket said XL’s troubles would be blow for the travel trade.

He said: “If the news is true, it is a major, major thing for the industry, the British travel industry. They are a very large operator and this will send serious shock waves through the industry.

“And what it’s going to do more than anything, it’s going to highlight how precarious the airline industry is at the moment.”

XL customer Marion Foster of Thame, Oxfordshire, has a flight booked to Rhodes next week and was contacted by customer services on Wednesday to ensure her tickets had arrived.

She said: “At the time I thought it was a nice customer service touch to receive such a phone call but now I don’t know what to think.

“As I only booked flights with them it looks like I will lose my money which seems somewhat unfair.”


Are you affected by the issues in this story? Do you have a holiday booked with XL? Send us your comments and experiences

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September 5, 2008

Easyjet’s passenger numbers rise

Easyjet’s passenger numbers rise

easyjet plane

Eayjet’s passenger traffic is up despite difficult market conditions

Easyjet has said that the number of passengers it flew in August this year rose 24% on the same month last year.

Europe’s second-largest budget airline said it transported some 4.6 million passengers in August 2008, compared to 3.7 million in August 2007.

Aer Lingus also saw an increase, flying 8.8% more passengers this August than in August 2007.

On a rolling 12-month basis to August 2008, Easyjet increased passenger numbers by 16.6%.

The number of seats filled also increased to 91.3% from 87.4% last August.

At Aer Lingus the load factor was 80.5% in August, a slight dip on 81.7% a year ago.

Easyjet shares were down 2% at 1005 BST, while Aer Lingus shares were down 0.9%.

Industry turbulence

The figures for Easyjet and Aer Lingus are relatively strong compared with those released on Friday by Scandinavian airline SAS.

SAS, which is partly owned by the governments of Denmark, Sweden and Norway, said traffic for August measured in revenue passenger kilometres, fell 0.7% and demand was weakening further.

Airlines worldwide have been effected by the economic deceleration and several airlines, including business airlines Silverjet, Maxjet and Eon and budget airline Zoom, have folded.

According to the International Air Transport Association (IATA), global airlines will post losses in the region of $5.2bn (£2.96bn) this year and $4.1bn in 2009.

August 28, 2008

Zoom heads towards administration

Zoom heads towards administration

The grounded plane at Glasgow Airport

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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