The UK's third-largest tour operator, XL Lesiure Group has gone into administration leaving thousands of holidaymakers stranded abroad and at home. The CAA estimate that 85,000 people are affected by the firms collapse, with 200,000 people with future bookings left struggling to obtain a refund.
XL blamed the rising cost of fuel and the impact of the credit crunch which left the company unable to secure the necessary re-financing to remain in business.
All flights have been cancelled and the aircraft grounded with immediate effect. The German and French divisions of the company have been saved as buyers for the businesses have already been found.
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Andy Leadbetter, managing director of insurance and home services at moneysupermarket.com, said: “Another huge blow for holidaymakers, hot on the heels of Zoom Airlines’ collapse.
“The 50,000 Brits abroad now on XL package holidays will be protected under the ATOL licence and will be contacted and flown home; for customers who have not yet travelled I recommend you contact your travel agent, or ATOL if you booked directly, for advice.
“However, 25,000 fight-only customers are unfortunately not protected and will need to contact the Civil Aviation Authority to make arrangements to get home if overseas. Of the 200,000 advanced bookings, those who paid by credit card will be protected by section 75 of the Consumer Credit Act for payments of £100 to £30,000. Those who paid by Visa debit card should also get redress via the Visa chargeback scheme and should contact their card issuer. It’s also important to scour the small print of your travel insurance policy to see if airline insolvency is covered.
"For future holiday plans, it’s crucial to get your travel insurance as soon as you have booked your holiday. But for the one in seven (14 per cent) British holidaymakers who admit to never taking out travel insurance* the 'it-won't-happen-to-me' mentality won't help replenish your wallet if you find yourself out of pocket for events beyond your control.
“Without adequate insurance getting compensation for disrupted travel plans could be incredibly difficult. Always check the small print to see what you are and aren’t covered for. At a time when consumers are watching every penny, and holidays away are becoming more difficult to afford, it’s important to ensure you don’t lose out.”
Have your say: Have you been caught up in the collapse of XL? Are you covered by adequate travel insurance cover or are you still happy to 'risk it'? Click reply to have your say...
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