Friday, September 12, 2008

XL Leisure Group in the UK has stopped operations, stranding many customers.

Check with the website, now under control of those taking over the business, for details.

The following are recommended actions as of Sept 12, from the company website:

XL Leisure Group Plc, XL Airways UK Limited, Excel Aviation Limited, Explorer House Limited, Aspire Holidays Limited, Freedom Flights Limited, Freedom Flights (Aviation) Limited, The Really Great Holiday Company plc, Medlife Hotels Limited, Travel City Flights Limited, Kosmar Villa Holidays plc – All in Administration (the Companies)

On 12 September 2008, Alastair Beveridge, Nick Cropper, Simon Appell and Stuart Mackellar were appointed as Joint Administrators of the Companies by the Court.

The Companies entered into Administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding.

The Joint Administrators cannot continue trading the business and therefore all flights operated by the Companies have been immediately cancelled and the aircraft grounded. Going forward, the Joint Administrators are unlikely to be able to trade the business or operate the aircraft.

All passengers who have yet to commence their travel should make alternative arrangements as detailed below.

France and Germany

The French and German divisions of the XL Group continue to trade as usual.

Customers booked with XL Leisure Group ATOL tour operators

The following tour operators held Air Travel Organiser’s Licenses (ATOL) and customers that purchased air holidays and flights from them will be ATOL protected. Full details are on the Civil Aviation Authority's (CAA) ATOL website (www.atol.org.uk):

  • The Really Great Holiday Company PLC - ATOL 3827
    Trading as: Cruise City, Excel Holidays, The Florida Skytrain, Transatlantic Vacations, Travel City Direct and Travel City International
  • Kosmar Villa Holidays PLC - ATOL 1760
    Trading as: Kosmar Holidays
  • Freedom Flights Limited - ATOL 5296
    Trading as: Freedom Flights
  • Aspire Holidays Limited - ATOL 6536
    Trading as: Aspire Holidays

Customers currently abroad

You should be able to stay in your hotel or villa and complete your holiday. In most cases, your accommodation provider will be paid direct by the CAA so you will not incur any additional expenses. If you need to make any payments for items like hotels or transfers, you should obtain a receipt as far as possible. The CAA will be able to consider claims for refunds for these amounts.

A flight will be arranged to bring you home by the CAA. You can check with your holiday representative for information about any changes to your flight arrangements, or check on the ATOL website (www.atol.org.uk). For those customers in particular distress please contact the CAA’s help line on telephone number +44 (0) 2891 856 547.

Customers with advanced bookings but yet to travel

All passengers who have booked through a travel agent should contact that agent in the first instance who will be able to assist you in making a claim on ATOL. If you booked directly with an XL Group company than please contact ATOL directly.

ATOL may be able to provide an alternative arrangement. Further information is available on the ATOL website (www.atol.org.uk).

Customers booked with XL Airways Through XL.com or XL Call Centres

Unfortunately, customers who booked either through xl.com or xl call centres are not ATOL protected. Consequently, you will be ineligible for a refund from ATOL in respect of your flight.

Customers currently abroad

The CAA will be able to make arrangements for your return journey. As you fall into an unprotected category of customers you will be invoiced a fee on your return to the UK. Please check on the ATOL website (www.atol.org.uk) for details or go to the local airport ticketing desk where they will be able to make arrangements and inform passengers of the likely costs.

Alternatively, you may be able to find a flight better suited to your needs by making your own, independent arrangements to return home. The CAA is not in a position to cover the costs of your own arrangements. For all new bookings please ensure you retain your receipts.

If you are owed money as a result of incurring costs to return to the UK please send details of the amount owed to you by the Companies to Kroll Limited, Wellington Plaza, 31 Wellington Street, Leeds LS1 4DL.

Customers should check their travel insurance policy since it may provide cover for airline or accommodation failure. The type of protection provided may also vary depending on the type of policy taken out. A policy may cover the complete or partial cost of the original tickets or accommodation purchased.

If you paid by credit card, you may be protected by Section 75 of the Consumer Credit Act 1974. If you paid by Visa debit card you may also have some protection. You should check with your card issuer for further advice.

In the event that you wish to organise your own return travel, detailed below are a list of potential alternative carriers:

  • First Choice – 0871 200 7799
  • Thomas Cook – 0870 750 0119
  • Thomson – 0871 231 5938

Further information can be obtained from the Administrator’s help line as follows:

  • From the UK – 0800 068 8991
  • From Abroad - + 44 208 242 4783

Customers with advanced booking but yet to travel

All flights have been cancelled and will not be rescheduled.

Customers of Medlife Hotels

Unfortunately, customers who booked through Medlife Hotels are not ATOL protected.

Customers currently abroad

You may be able to stay in your accommodation and complete your holiday. Please contact your relevant travel agent.

Customers with advance bookings but yet to travel

All holidays through Medlife Hotels have been cancelled and the Joint Administrators are not in a position to refund you in respect of these cancelled holidays.

If you are owed money as a result of a cancelled holiday please send details of the amount owed to you by the Companies to Kroll Limited, Wellington Plaza, 31 Wellington Street, Leeds LS1 4DL.

Customers should check their travel insurance policy since it may provide cover for accommodation failure. The type of protection provided may also vary depending on the type of policy taken out. A policy may cover the complete or partial cost of the original tickets or accommodation purchased.

If you paid by credit card, you may be protected by Section 75 of the Consumer Credit Act 1974. If you paid by Visa debit card you may also have some protection. You should check with your card issuer for further advice.

Press Related Enquiries

All press related queries concerning the Companies Administration should be redirected to the Kroll Press Office on 0207 973 5995.

All press enquiries concerning ATOL protection should be directed to the CAA Press Office on 0207 453 6030.

The affairs, business and property of the Companies are being managed by the Joint Administrators A P Beveridge (ICAEW), M N Cropper (ICAEW), S J Appell (ICAEW) and S C E Mackellar (ICAS). The Joint Administrators act as agents of the Companies and without personal liability.

Alastair Beveridge, Simon Appell and Nick Cropper are all licensed by the Institute of Chartered Accountants of England and Wales. Stuart Mackellar is licensed by the Institute of Chartered Accountants of Scotland.