The latest seems to suggest that it will be soted.

ATOL protection isn't what worries me - it's having to find flights at the last minute!

XL Leisure Group focus of refinancing speculation

XL Leisure Group is at the centre of speculation over refinancing plans.

Weekend newspaper reports claimed that the UK's third largest tour operating group was in urgent refinancing negotiations.

Financing associated with fuel hedging positions is understood to be at the centre of discussions.

A spokesman for XL, which includes XL Airways and operator brands such as Kosmar Holidays, Aspire, Travel City Direct and Freedom Flights, reportedly said it was not close to breaching the terms of its banking loans.

But he confirmed that the group was talking to a number of third parties as part of an ongoing financial process.

A statement said: "The group is engaged with a number of third parties as part of this process and has no further comment on the specifics of the refinancing.

"Whilst acknowledging it is a challenging market, the XL Leisure Group is experiencing strong trading with bookings for 2009 already outperforming last year.

"In addition, XL Airways has been the highest-performing airline at Gatwick and Manchester on punctuality during the month of July. With the addition of new aircraft this year XL will also be operating the youngest fleet of short haul aircraft in the UK."

One industry insider close to XL was quoted in today's Daily Telegraph as saying the situation was "retrievable", adding that the "consensus is that there is light at the end of the tunnel" for XL.

With permission from Travelmole

Their statement "Experiencing strong trading with bookings for 2009 already outperforming last year", does'nt ring true with cancelling their entire Caribbean operations. Zoom also was well on their way to a refinancing package, according to them, when they suddenly pulled the plug. I'd be very reluctant to book with them at present, until the dust settles, and their financial position becomes clearer Alan

Their Caribbean routes are only a fraction of their operating schedule. Over the high summer season, only four of their 222 weekly rotations are to the Caribbean.

With their modern fleet, decent punctuality and generally good customer feedback, if XL Airways were to go bust it would spell a great deal of trouble for the rest of the holiday companies.

In fairness, we should point out that lots of airlines and tour operators are making significant cutbacks to winter capacity due to the credit crunch and escalating fuel bills. However, some are being singled out for more media attention than others.

David

There are some media reports emerging tonight that XL may be about to declare bankruptcy, click here for more.

David

Interesting to note that this report has now been pulled.

fwh

Interesting to note that this report has now been pulled.

Which report ? The Times report linked to above is still live. Some of the other media groups may have backed down with their coverage for the moment, as their reports seem to have been based on The Times story.

David

I heard about this, this morning I do hope it's not true, especially following on from Futura.

Well yesterday, cos I just realised what time it is.

The BBC has now picked up on the story too, but difficult to know whether it is also based on the Times report, or if they have something more substantive:
http://news.bbc.co.uk/1/hi/business/7611639.stm

David

CAA still haven't been informed that the company is in administration according to a statement to the BBC

A lot of stories still floating around on this one

Further reports now on the story from:
Telegraph Travel
Telegraph Money
and a very bleak and alarming outlook from the travel industry's own media:
Travel Trade Gazette

David

XL.com and associated websites have gone to a holding maintenance page

Quicklinks from Google are no longer working (straight to HTTP 404)

Obviously something is pending

The UK's third largest tour operator has gone into administration. Pretty shocking news, but I guess not altogether unsurprising as there has been some speculation recently that they may be next to go.

Anyone who has a booking with them should go to their website, which carries advice on what to do next.

http://www.xl.com/

TC

Shocking indeed TC

Important to stress to any passengers that they have NOT to go to the airport as all planes are grounded.

As TC says check http://www.xl.com/ for more information.

we are (were) due to fly with them in just over 2 weeks time

Apparently they have gone into administration and all flights are grounded . I've just seen a report on the Beeb that they actually took people off a plane at Sanford which was waiting to leave!

I see the French and German operations of XL are still operating........

John.

I see the French and German operations of XL are still operating

I wonder for how much longer though

This collapse will have a huge impact through the travel industry, not only directly with the many different companies operating directly under the XL Leisure banner, but by a large amount of other travel companies that use XL Airlines and have customers booked on flights with them.

The companies that are part of XL and that have ceased trading immediately are -

Aspire Holidays Limited
Excel Holidays
Freedom Flights Limited
Medlife Hotels
The Really Great Holiday Company (Cruise City)
The Florida Skytrain
Transatlantic Vacations
Travel City Direct
Travel City International
Kosmar Holidays

I fear that as a result of this collapse of the 3rd largest tour operator in the UK there could be more companies to follow as a direct result.

I guess it will be the same as Seguro going bust when Futura folded.

How many smaller companies are reliant on XL for their packages ??????

John.