Rescue scramble as Globespan enters administration

The Civil Aviation Authority has stepped in to protect thousands of travellers booked on Globespan package holidays as Scotland's largest travel company went into administration.

The Edinburgh-based operator and airline had around 1,100 ATOL protected holidaymakers currently abroad on holiday, in Egypt and the Mediterranean.

An estimated 27,000 people with forward bookings for air holiday packages have had their breaks cancelled. Customers are advised not to go the airport and should instead claim a refund, the CAA said.

As a result of the appointment of PricewaterhouseCoopers as administrators, Flyglobespan flight operations ceased last night.

The CAA understands there are approximately 3,400 Flyglobespan customers currently abroad in Spain, including the Balearics and Canaries, Portugal, Cyprus and Egypt.

Flyglobespan passengers abroad have been left stranded and will need to make their own arrangements to return to the UK using alternative airlines.

The airline operated low fare scheduled services from Edinburgh and Glasgow airports to points in Europe, Egypt, the US and Canada. It also operated from Aberdeen, Gatwick, Manchester and Belfast airports.

Other airlines may make available special 'repatriation' fares to help Flyglobespan passengers.

There are an estimated 90,000 customers with forward bookings for Flyglobespan flights.

A CAA spokesperson said: "The Globespan Group PLC includes two companies, Globespan, a tour operator that sold package holidays protected by ATOL, and Flyglobespan, an airline whose passengers are not ATOL protected."

Airlines are outside the ATOL scheme, so people who booked directly with Flyglobespan are not protected, the CAA said.

Flyglobespan customers who paid by debit or charge card are being advised to contact their card company for advice about full or a partial refund where only part of the journey has been completed. Customers with travel insurance should check their policy to see whether airline insolvency cover is included.

Customers of other tour operators booked with Flyglobespan flights should speak to the company they booked with or their travel agent to find out whether or not they are able to travel, the CAA advised.

CAA deputy director of consumer protection David Moesli said: "Customers abroad who have booked a holiday package with the tour operator Globespan are ATOL protected.

"We are making the necessary arrangements to allow people who are currently on a package holiday with Globespan to complete their holidays and fly home.

"Customers will be booked on to new flights by the CAA to bring them home.

"We are making arrangements for overseas representatives to provide information to Globespan customers."

Globespan customers who are currently abroad should contact the CAA for more information on 0044 203 441 0846. Globespan customers with forward bookings can contact the CAA for more information on 0844 856 2585.

Flyglobespan customers can also call 0871 271 9000 for UK calls and +44141 332 3233 for those calling from Europe.

Information about alternative air services is available on the CAA website: http://www.atol.org.uk.

Majority of Globespan staff lose jobs

The majority of Globespan's 800 staff are to be made redundant, administrators confirmed.

The administrators confirmed that a small number will be retained to help wind down the company and the details of this are being finalised.

The Globespan group is in contact with approximately 5,000 passengers who are expecting to travel to and from foreign destinations during the coming few days. They are being advised to contact a helpline to receive updated advice.

The call centre numbers are:
0871 271 9000 for UK calls
+44 141 332 3233 for those calling from Europe.

Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers LLP in Scotland, said: "Despite difficult trading conditions, the company has successfully implemented a number of steps to refine operations and focus on core profitable business.

"Unfortunately a lack of confidence in the sector following the demise of other airlines resulted in a reduction of liquidity to fund the ongoing operations.

"The directors have sought to overcome this lack of liquidity by seeking additional funding from a third party in recent weeks but this has ultimately been unsuccessful. The directors have therefore concluded with regret that the business can no longer continue to operate.

"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.

"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."

Cartwright, Graham Frost and Ian Oakley-Smith at PwC were appointed as joint administrators to Scottish travel firm.

Cartwright added: "We are acutely aware of the distress this situation will cause those travellers who are currently abroad, as well as the impact on those holiday makers who have booked travel for later this year or 2010.

"Over the coming days we will be focusing our efforts on ensuring Globespan customers have all the information they require to both return home or to determine the next steps in terms of whether or not they can secure refunds."

Globespan routes:
Winter schedule
Glasgow Faro; Alicante; Gran Canaria; Lanzarote; Malaga; Paphos; Tenerife; Palma; and Egypt (Sharm el Sheikh and Hurghada)

Edinburgh Faro; Alicante; Gran Canaria; Lanzarote; Malaga; Paphos; Tenerife; Madeira; and Egypt (Sharm el Sheikh only)
AberdeenTenerife

Summer schedule (1 May - 31 October)

In addition to the above routes Globespan also flies to Orlando from Glasgow, Edinburgh, Cardiff and Belfast and operates package holidays in Canada and Turkey.

Ryanair provides Flyglobespan ‘rescue fares'

Ryanair has issued one way rescue fares of £59-£89 for stranded Flyglobespan passengers.

The fares apply to flights to/from Edinburgh and Prestwick, subject to availability.

The no-frills carrier also pledged to assist with the repatriation of passengers who may be caught up in any future airline collapse.

Ryanair's rescue fare can be booked via http://www.ryanair.com/member/globespanrescuefare.html until December 24 for travel until January 15.

A spokesman said: "Flyglobespan's failure underlines the risk of flying with an airline that is not financially stable.

"Ryanair will help stranded passengers return home and ensure that those with travel plans up to 15th January can still travel.

"Ryanair has the biggest route network in Europe making it easier for stranded Flyglobespan passengers to find a local airport and return home.

"Ryanair strongly advises all passengers to book airfares only with financially stable airlines. With over €2billion in cash reserves Ryanair is one of the most financially robust airlines in Europe".

Passengers must quote their Flyglobespan booking reference and bring the same reference for verification at the airport check-in point. Passengers who arrive to check-in without their Flyglobespan booking reference cannot be accepted for travel.


EasyJet also steps in

A rescue fare of £60 (including taxes) is being offered by EasyJet to flyglobespan passengers stranded following the company's failure.

The fare covers routes where EasyJet flights overlap with those of Flyglobespan.

These are: Faro to Glasgow, Malaga to Glasgow, Alicante to Glasgow, Faro to Edinburgh,
Malaga to Edinburgh,Alicante to Edinburgh and Geneva to Edinburgh.

The airline has made the offer available to any Globespan passengers due to return home on these routes over 14 days. The offer is available until 23:59 on December 30.

To claim the £60 rescue package, passengers are being advised to call EasyJet customer services on one of the numbers listed below.

Passengers must provide the agent with their Globespan booking reference number and present their Globespan booking confirmation at check-in as further proof of booking.

From UK: 0871 244 2366
From Spain: 807 0700 70
From Switzerland: 0900 000 258
From another country: +44 871 244 2366.

Virgin moves to plug Globespan gap

Virgin Atlantic is to lay on additional Florida flights from Glasgow following the demise of Scottish operator Globespan.

Seven extra flights to Orlando are expected to run during June and July next year.

Free National Express vouchers will also be available to people travelling from Glasgow, Edinburgh and Cardiff to connect with Virgin Atlantic flights to Orlando from Manchester and Gatwick airport, subject to availability.

Virgin Holidays' Florida packages from Glasgow start at £999 per adult and £569 per child based a 14-night holiday staying at the Quality Inn International departing on June 15 and 16, 2010.

Globespan holidaymakers offered TUI alternatives

Thomson and First Choice are offering alternative holidays to thousands of holidaymakers after the demise of Globespan.

Globespan customers who booked their holiday directly from any Thomson or First Choice shop can seek alternative arrangements.

Thomson and First Choice have a dedicated helpline available on: 0800 009 3833.

Managing director Dermot Blastland said: "We are advising customers who booked a package holiday through one of our shops to take their original documents with them to any of our branches nationwide.

"Our experienced retail teams will be able to arrange an alternative holiday from our wide range of destinations, and assist with claiming the refund for their Globespan holiday.

"Customers can therefore rebook to go to their original destination or an alternative, simply by paying the difference in the package price if the cost is higher."

Globespan customers who have booked a holiday or flight with a travel agent other than Thomson or First Choice are advised to visit the travel agent that originally sold them the holiday.

With permission from Travelmole