Thousands of Irish hit as tour operator collapses

Thousands of Irish passengers have been left stranded after XL Leisure Group, the UK’s third largest tour operator, grounded all flights today after going into administration.

The group, which operates a number of charter flights from the Republic, declared bankruptcy earlier today having failed to secure a rescue package amid deep financial difficulties.

According to the Commissioner for Aviation Regulation, Cathal Guiomard, it is understood the number of Irish holidaymakers abroad with the XL Holidays company is slightly over 1,000, with some 3,000 set to travel abroad with the firm.

In a statement on its website, XL Leisure Group said it had been hit by rising fuel costs and the credit crunch. Some 67,000 people in total are stranded abroad, it added.

The group said all its flights have been cancelled and its fleet of aircraft are now grounded. Two flights from Dublin airport to Skiathos in Greece and Reus in Spain due to depart today were among the cancellations.

The Commission for Aviation Regulation said two aircraft will bring those stranded in Reus back to Ireland on Sunday. The flights will leave Reus at 15.10 and 22.30 local time.

Chartered services to Faro in Portugal, Bourgas in Bulgaria, Palma in Majorca and Arrecife in Lanzarote are among others cancelled.

Speaking on RTÉ's Morning Irelandtoday, Mr Guiomard advised those expecting to take holidays with the tour operator XL Holidays to obtain a XL Holidays claim form on the commission's website, http://www.aviationreg.ie/, notify the commission of the amount of money lost, and make a claim against the insurance and bonding system if eligible to do so.

He said although customers of XL Holidays, licensed in Ireland, were entitled to make claims, customers of associated companies and those who had booked flights only through XL Airways are “typically not within the insurance scheme”. Those customers were advised to contact their tour operator or travel agent directly.

The commission has published a "frequently asked questions and answers" section on its website for those affected by the collapse.

The Thomas Cook Group - which operates the Panorama, Sunworld and Direct Holidays brands in Ireland - said it was urgently sourcing alternative flight options for customers.

The latest collapse follows the suspension of all flights by charter airline Futura Gael earlier in the month, and the collapse of low-fares airline Zoom in August. Three Irish travel groups also went bust recently - Ronane Travel Ltd/Great Escapes, Gerry McMahon/Fáilte Travel and MacLaverty Travel Ltd.

Ryanair has offered the British Civil Aviation Authority (CAA) the use of an aircraft for the next two weeks to help return stranded holidaymakers. The carrier said it is using one of its spare 737-800 aircraft to help the authorities in Ireland and Britain to provide services for outgoing and returning passengers who have booked the airline.

A total of 200,000 customers have advance bookings with XL tour operators, but all future departures have been cancelled. XL Airways provides flights to more than 50 destinations across Europe, America and Africa.

In Britain, passengers yet to travel were advised make alternative arrangements, while those already on holiday will be brought home on flights arranged by the British Civil Aviation Authority (CAA).

Customers who booked through four tour operators - The Really Great Holiday Company, Kosmar Holidays, Freedom Flights, and Aspire Holidays - are protected under the Air Travel Organiser’s Licenses (ATOL) scheme, it said.

However, those who booked direct with an XL Group company were urged to contact ATOL immediately.

Phil Wyatt, chief executive of XL Leisure Group, said he was “devastated” at the company’s collapse and apologised to his customers and employees.

Speaking at a press conference at Gatwick Airport, XL’s chief executive said: “Ultimately I blame myself, I’m the CEO, I take legal responsibility for it.”

But he added that the withdrawal of support from lenders had left the company with no option than to call in administrators.

“We have made every effort to refinance the principal debt of the group but, despite significant interest, the group was unsuccessful.

“More recently, record oil prices and a worsening economic environment has meant our economic requirements have increased and our efforts have been overwhelmed.”

He expressed his gratitude to XL’s 1,700 staff, who will now face an uncertain future.

Additional reporting: PA