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Major holiday airline goes bust Major holiday airline goes bust
(10 minutes later)
Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration. Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration with all scheduled flights cancelled.
Last year the airline, which employs 600 staff, carried more than 1.5m passengers and operated 12,000 flights. Administrators PricewaterhouseCoopers said Globespan was in contact with about 5,000 passengers booked with or travelling with the airline.
A statement is expected soon from PricewaterhouseCoopers, (PWC) which has been appointed as administrator. Last year the airline, which employs about 800 staff, carried more than 1.5m passengers and operated 12,000 flights.
The majority of the company's staff have been made redundant.
The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down today.The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down today.
Many of those flying with the airline booked online or direct with the company and not through a registered travel agent, leaving them potentially out-of-pocket. We would strongly advise those passengers who had expected to travel tomorrow to remain at home or make alternative arrangements as there is no prospect of their planned flight taking place Bruce CartwrightPricewaterhouseCoopers
Flights booked this way will not be reimbursed, though those who booked with a credit card or had arranged their own insurance may be covered. In a statement tonight, the administrators said the Civil Aviation Authority (CAA) would be responsible for the repatriation of those who have booked flights as part of a Globespan package holiday.
Package holiday bookings however, will normally be covered by ABTA. Passengers who had booked through a travel agent were advised to contact that agent.
Customers who booked Flyglobespan flights directly via the Flyglobespan website or the call centre would not be protected.
However, those who paid with a credit or debit card were advised to contact their card issuer.
Bruce Cartwright of PricewaterhouseCoopers said: "Unfortunately I am obliged to confirm that, the Group will not longer be able to operate flights.
"Our focus right now is on assisting those passengers who need to complete return journeys and communicating with those who have future reservations.
Operating profitOperating profit
On the Flyglobespan website its Christmas and New Year schedule shows flights to Tenerife and many other winter holiday destinations from Edinburgh, Glasgow and Aberdeen. "We would strongly advise those passengers who had expected to travel tomorrow to remain at home or make alternative arrangements as there is no prospect of their planned flight taking place."
Ryanair has said it will launch a Flyglobespan "rescue fare" to and from Edinburgh and Prestwick airports for any passengers affected. On the Flyglobespan website its Christmas and New Year schedule showed flights to Tenerife and many other winter holiday destinations from Edinburgh, Glasgow and Aberdeen.
The Ryanair offer applies to flights into and out of Prestwick to Alicante, Faro, Gran Canaria, Lanzarote, Malaga, Palma and Tenerife, and into and out of Edinburgh to Alicante, Gran Canaria, Lanzarote, Malaga and Tenerife.
Earlier this year, Flyglobespan announced it had made an operating profit of £1.2m following a loss of £19m the previous year.Earlier this year, Flyglobespan announced it had made an operating profit of £1.2m following a loss of £19m the previous year.
Set up in 2002, the company operates from five UK airports, including Prestwick, Edinburgh and Aberdeen.Set up in 2002, the company operates from five UK airports, including Prestwick, Edinburgh and Aberdeen.
Earlier this year, it pulled its services out of the Durham Tees Valley airport, blaming the worsening economic climate.Earlier this year, it pulled its services out of the Durham Tees Valley airport, blaming the worsening economic climate.
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