Excel Airways
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BBC Tom Symonds reporting that it has filed for administration.
Another travel interviewer suggested that the flight arriving at 08:15 in the morning may be their last.
Still accepting bookings online
Another travel interviewer suggested that the flight arriving at 08:15 in the morning may be their last.
Still accepting bookings online
Join Date: Oct 2007
Location: Birmingham
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From The Times................
Thousands of British holidaymakers face being stranded overseas today as their tour operator, XL Leisure, prepares to declare bankruptcy.
XL, the third-largest package holiday company in Britain, was trying frantically to secure a multimillion-pound rescue package last night but sources close to the negotiations said that its chances of survival were slim.
Assuming that there is no last-minute rescue, the holiday company will declare bankruptcy today. This will result in its fleet of 21 aircraft being grounded, stranding holiday makers in more than 50 destinations around the world.
Rival airlines are understood to have been approached to repatriate the holidaymakers from places such as Florida and the Caribbean. A source familiar with plans to rescue them said: “They are hoping to make an orderly announcement on Friday so as not to cause a panic.”
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As most customers will have booked their holiday as a package, they will be covered by insurance from the Air Travel Organisers’ Licensing. This should pay for their flights back to Britain and hotels but many will be stuck in airports for days as they wait for seats on other airlines.
People who have booked holidays with XL for future dates should also be able to reclaim their money. However, passengers who booked flights and hotels direct with XL but not as part of a package will lose theirs.
XL is the third-largest package holiday company in Britain after Thomas Cook and Tui Travel, which owns First Choice. The company sponsors West Ham United, and its financial difficulties call into question the future of a £2.5 million annual sponsorship deal with the Premiership football club.
XL has its name on the front of the shirts and the logo emblazoned on the roof of one of the stands at Upton Park, the club’s home ground in East London. The sponsors are also given a hospitality box at the ground.
The probable failure of a tour operator as large as XL, which owns the brands Kosmar, XL.com, Freedom Flights and Travel City Direct, will shock the travel industry.
The economic climate combined with high fuel costs has put pressure on all airlines and holiday companies. Last month Zoom, the low-cost transatlantic airline, declared bankruptcy, stranding hundreds of passengers in Canada and the US.
Seguro Travel, a package holiday operator based in Scotland, said yesterday that it was entering into administration. The company offered package deals to Gran Canaria and Costa Brava from Glasgow. Seguro put blame for its closure on the failure of Futura, a Spanish airline that provided 80 per cent of its flights.
So far this year more than two dozen airlines and holiday companies have gone into bankruptcy and analysts believe that many more will follow in the coming months as seasonal demand and revenue drops sharply in the winter.
One industry expert said: “This will cause great trauma for many people. But it is not surprising, as many weaker airlines and holiday firms will struggle in the current environment.”
XL operated from Gatwick, Manchester, Glasgow, Newcastle and Birmingham. According to its last full set of financial results, it lost £24 million on a turnover of £550 million in 2007. It has more than 2,000 employees and is understood to owe large sums of money to Landsbanki, an Icelandic bank, and Straumur, an Icelandic investment fund. Its total debt was more than £200 million, according to company documents.
XL could not be reached for comment last night.
Thousands of British holidaymakers face being stranded overseas today as their tour operator, XL Leisure, prepares to declare bankruptcy.
XL, the third-largest package holiday company in Britain, was trying frantically to secure a multimillion-pound rescue package last night but sources close to the negotiations said that its chances of survival were slim.
Assuming that there is no last-minute rescue, the holiday company will declare bankruptcy today. This will result in its fleet of 21 aircraft being grounded, stranding holiday makers in more than 50 destinations around the world.
Rival airlines are understood to have been approached to repatriate the holidaymakers from places such as Florida and the Caribbean. A source familiar with plans to rescue them said: “They are hoping to make an orderly announcement on Friday so as not to cause a panic.”
Related Links
As most customers will have booked their holiday as a package, they will be covered by insurance from the Air Travel Organisers’ Licensing. This should pay for their flights back to Britain and hotels but many will be stuck in airports for days as they wait for seats on other airlines.
People who have booked holidays with XL for future dates should also be able to reclaim their money. However, passengers who booked flights and hotels direct with XL but not as part of a package will lose theirs.
XL is the third-largest package holiday company in Britain after Thomas Cook and Tui Travel, which owns First Choice. The company sponsors West Ham United, and its financial difficulties call into question the future of a £2.5 million annual sponsorship deal with the Premiership football club.
XL has its name on the front of the shirts and the logo emblazoned on the roof of one of the stands at Upton Park, the club’s home ground in East London. The sponsors are also given a hospitality box at the ground.
The probable failure of a tour operator as large as XL, which owns the brands Kosmar, XL.com, Freedom Flights and Travel City Direct, will shock the travel industry.
The economic climate combined with high fuel costs has put pressure on all airlines and holiday companies. Last month Zoom, the low-cost transatlantic airline, declared bankruptcy, stranding hundreds of passengers in Canada and the US.
Seguro Travel, a package holiday operator based in Scotland, said yesterday that it was entering into administration. The company offered package deals to Gran Canaria and Costa Brava from Glasgow. Seguro put blame for its closure on the failure of Futura, a Spanish airline that provided 80 per cent of its flights.
So far this year more than two dozen airlines and holiday companies have gone into bankruptcy and analysts believe that many more will follow in the coming months as seasonal demand and revenue drops sharply in the winter.
One industry expert said: “This will cause great trauma for many people. But it is not surprising, as many weaker airlines and holiday firms will struggle in the current environment.”
XL operated from Gatwick, Manchester, Glasgow, Newcastle and Birmingham. According to its last full set of financial results, it lost £24 million on a turnover of £550 million in 2007. It has more than 2,000 employees and is understood to owe large sums of money to Landsbanki, an Icelandic bank, and Straumur, an Icelandic investment fund. Its total debt was more than £200 million, according to company documents.
XL could not be reached for comment last night.
Excel no more?
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Has The Times jumped the gun?
I’ve just read that Eimskip - the holding company (is it the holding company?) - has loads of cash. If that’s the case, is it possible for a subsidiary - XL Leisure (parent of XL Airways) - to actually go bankrupt - if the holding company has enough money? Surely it can’t if the holding company has enough working capital?
I’ve just read that Eimskip - the holding company (is it the holding company?) - has loads of cash. If that’s the case, is it possible for a subsidiary - XL Leisure (parent of XL Airways) - to actually go bankrupt - if the holding company has enough money? Surely it can’t if the holding company has enough working capital?
Last edited by Bridge Builder; 12th Sep 2008 at 00:05.
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Bridge Builder
They are not the holding company. They sold the company to the management in 2006 and lent them some of the money by way of a loan to get rid of XL. Investment funds are run by switched on people. They know when to divest to avoid getting burned. The management of XL were on an ego trip and decided to buy the company back.
I guess September ATOL renewals were looming and the CAA would require the company to be adequately funded which is obviously isn't.
Goodbye XL, hello Kiss Air !!
Same story as always, management have a safety parachute, staff do not. I hope everyone will find alternative employment, although it may take a little time given the economic climate.
Has The Times jumped the gun?
I’ve just read that Eimskip - the holding company (is it the holding company?) - has loads of cash.
I’ve just read that Eimskip - the holding company (is it the holding company?) - has loads of cash.
I guess September ATOL renewals were looming and the CAA would require the company to be adequately funded which is obviously isn't.
Goodbye XL, hello Kiss Air !!
Same story as always, management have a safety parachute, staff do not. I hope everyone will find alternative employment, although it may take a little time given the economic climate.
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It s quite frighteninig to see so many airlines going down at present- I thought the winter would be the crunch time, not now when bookings would have been made beofre the economic times got so bad.
Makes you wonder what the winter will bring.
Let's hope XL survive.
Makes you wonder what the winter will bring.
Let's hope XL survive.
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Cheers for explanation of ownership Charterguy. Still. Something strange has happened near the Arctic Circle in the past 24 hours.
Just read that the Icelandic fellows were full of beans and confidence only on Wednesday - saying they were going to guarantee XL Leisure’s loan. Odd. Very Odd.
Just read that the Icelandic fellows were full of beans and confidence only on Wednesday - saying they were going to guarantee XL Leisure’s loan. Odd. Very Odd.
Last edited by Bridge Builder; 11th Sep 2008 at 23:56.
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Times on-line report
I just read the Times on-line report.
Mention is, quite rightly, made of the trauma for XL's customers abroad.
Very importantly (?!) the fact that XL sponsor West Ham is mentioned.
Not at any point is it mentioned about the trauma and pain for the specialised staff at XL who may now wait years (!) to find similar employment.
Please all find time to complain to The Times for this selfish and un-balanced reporting.
Good luck to all.
Mention is, quite rightly, made of the trauma for XL's customers abroad.
Very importantly (?!) the fact that XL sponsor West Ham is mentioned.
Not at any point is it mentioned about the trauma and pain for the specialised staff at XL who may now wait years (!) to find similar employment.
Please all find time to complain to The Times for this selfish and un-balanced reporting.
Good luck to all.
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Report in the Telegraph
XL Leisure Group, Britain's third biggest holiday group, is being put into administration after its lenders pulled the plug on the ailing company.
Travel operators have struggled to cope with a weakening in consumer confi dence and high oil prices and XL has become the latest casualty after the failure of package holiday firm Seguro earlier this week.
Kroll, the insolvency specialist, is expected to be formally appointed to handle the administration today.
Talks have been going on for the last two weeks to try to refinance the company but creditors to XL, which include Icelandic bank Straumur, are understood to have lost patience.
XL Leisure Group, Britain's third biggest holiday group, is being put into administration after its lenders pulled the plug on the ailing company.
Travel operators have struggled to cope with a weakening in consumer confi dence and high oil prices and XL has become the latest casualty after the failure of package holiday firm Seguro earlier this week.
Kroll, the insolvency specialist, is expected to be formally appointed to handle the administration today.
Talks have been going on for the last two weeks to try to refinance the company but creditors to XL, which include Icelandic bank Straumur, are understood to have lost patience.