FlyGlobespan 'owed £30m by credit card firm'

Collapsed airline's administrators make 550 staff redundant

Administrators dealing with the winding up of airline FlyGlobespan are investigating why a "significant" amount of money from credit card bookings has not been paid to Globespan. The sum, thought to be between £30m and £35m, has been held by payment-processing firm E-Clear, which handled Globespan's credit card transactions. It is believed to be about double the amount needed to be paid to credit card customers whose flights were cancelled before they took off.

Bruce Cartwright, of PricewaterhouseCoopers (PwC), which has been called to manage the administration, wouldn't say whether the amount being held by E-Clear contributed to the airline's collapse, and said his immediate priority was getting people home. PwC made 550 Globespan staff redundant yesterday, retaining 100 to deal with the winding up of operations.

It is believed the money withheld may have been for flights yet to take off. When airlines XL and Zoom collapsed last year, the insurance industry made it much more expensive for credit card companies to cover that insurance cost. Since then, delays in payment have become more common as a means of insuring tickets.

Several airlines mounted an emergency operation yesterday to repatriate about 4,500 holidaymakers left stranded by the collapse. Ryanair and easyJet offered discount fares and laid on extra services from Spain, Portugal, Cyprus and Egypt.

Many more Globespan staff left overseas in India, the Middle East and Ascension Island are slowly being repatriated. Some 60 staff in Delhi have been given free flights home by Virgin, while Air Italy has temporarily taken over Globespan's "air bridge" flights for British troops based in the Falkland Islands.

Globespan also had a special contract to shuttle Muslim pilgrims between Delhi in India and Saudi Arabia. Some of the airline's female crew are thought to be stranded in Saudi Arabia, and will face tight restrictions on where they are allowed to go.

There were chaotic scenes at Scottish airports yesterday as many Globespan passengers arrived to find their flights cancelled.

Gino Giannico, 75, and wife, June, 77, a retired couple from Dundee, had paid £1,600 for a package holiday to Alicante but had not heard of Globespan's collapse. "I'm blazing mad. They've obviously not just known about this yesterday – they must have known earlier," said Mr Giannico.

The Civil Aviation Authority has guaranteed to repatriate the 1,100 people who bought Globespan package holidays under an industry scheme. The 3,500 others who bought flights online will have to buy new tickets home and recoup their lost money from their credit card companies.

Fiona Farmer, the regional officer for Flyglobespan with the Unite union, said: "We are in urgent discussion with the receivers on this issue."

PwC advised Globespan customers to call new helpline numbers 0141 332 3233 or 0131 466 7612.

PROMOTED VIDEO
Sport
Ojo Onaolapo celebrates winning the bronze medal
commonwealth games
Arts and Entertainment
Rock band Led Zeppelin in the early 1970s
musicLed Zeppelin to release alternative Stairway To Heaven after 43 years
News
i100
News
Prince Harry is clearing enjoying the Commonwealth Games judging by this photo
people(a real one this time)
Extras
indybest
News
Richard Norris in GQ
mediaGQ features photo shoot with man who underwent full face transplant
Sport
Lionel Messi looks on at the end of the final
football
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Gardai wait for the naked man, who had gone for a skinny dip in Belfast Lough
newsTwo skinny dippers threatened with inclusion on sex offenders’ register as naturists criminalised
News
Your picture is everything in the shallow world of online dating
i100
News
The Swiss Re tower or 'Gherkin' was at one time the UK’s most expensive office when German bank IVG and private equity firm Evans Randall bought it
news
Life and Style
Attractive women on the Internet: not a myth
techOkCupid boasts about Facebook-style experiments on users
Sport
Van Gaal said that his challenge in taking over Bobby Robson's Barcelona team in 1993 has been easier than the task of resurrecting the current United side
football
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Graduate / Trainee Recruitment Consultant - IT

£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...

HR Business Partner - Banking Finance - Brentwood - £45K

£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...

PA / Team Secretary - Wimbledon

£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...

HR Business Partner (Maternity Cover 12 Months)

£30000 - £34000 Per Annum 25 days holiday, Private healthcare: Clearwater Peop...

Day In a Page

The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
Countries that don’t survey their tigers risk losing them altogether

Countries that don’t survey their tigers risk losing them

Jonathon Porritt sounds the alarm
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz
A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

A new Russian revolution

Cracks start to appear in Putin’s Kremlin power bloc
Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

Apartheid’s sadistic killer that his country cannot forgive

The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

Standing my ground

If sitting is bad for your health, what happens when you stay on your feet for a whole month?
Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

Greene prays for chance to rebuild after injury agony

Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
Israel-Gaza conflict: Secret report helps Israelis to hide facts

Patrick Cockburn: Secret report helps Israel to hide facts

The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
The man who dared to go on holiday

The man who dared to go on holiday

New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

Best comedians: How the professionals go about their funny business

For all those wanting to know how stand-ups keep standing, here are some of the best moments
The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

The Guest List 2014

Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

Jokes on Hollywood

With comedy film audiences shrinking, it’s time to move on