Oversea Travel Operators Go Bust
Friday, September 12, 2008 6:19
After yesterday’s collapse of XL Leisure, which is Britain’s third largest package holiday group, today at least 67,000 passengers across the globe were left stranded overseas as its planes were grounded. BA’s chief executive just predicted another 30 airlines to go out of business before Christmas. Following Scotland’s Seguro Travel and Zoom, XL, sponsors of the West Ham United, is the largest travel operator to collapse this year,
The costly fuel and the economic slowdown were cited the as two of the main reasons for travel operators’ collapse. A lot of airlines are struggling to remain in business in the difficult trading environment nowadays. BA just announced yesterday that to save £170 million, the company is going to cut 1,400 senior management jobs.
Though BA and Ryanair have both offered planes to the CAA to help bring draped XL passengers back to the UK, it would still be a very “huge challenge” for the Civil Aviation Authority to bring back the passengers who are stuck at overseas airports with God-knows-what carriers it can find.
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Ian Gwyther says:
September 12th, 2008 at 10:40 am
I have to ask how a travel firm goes bust it seems to me a win win situation if you have product people want then people come to you. And in travel the customer pays up front before receiving the product and you’ve negotiated with your supplier too secure your costs. It seem someone maladministration has probably brought this company down along with some greed. Which probably left the public not wanting the product because of cost.