Holiday misery for 65,000 Britons

An army of British holidaymakers were stranded abroad today after the collapse of the UK's third largest tour operator.

About 65,000 were thought to have been affected immediately, with up to another 200,000 back at home reportedly left holding worthless holiday tickets.

Related articles

• XL collapse: Refund hope for stricken holidaymakers
• Concerns over more tour operators

Thousands of people arrived at UK airports today to find their flights had been cancelled after XL Leisure Group went into administration overnight.

Many more travellers already part-way through foreign breaks were left wondering how they would get home.

The Civil Aviation Authority (CAA) is trying to arrange special flights back to Britain - but some people will have to pay again to get a seat.

Meanwhile, the 1,700 staff employed worldwide by XL Leisure Group, based in Crawley, West Sussex, were facing an uncertain future.

And British Airways chief executive Willie Walsh predicted that another 30 airlines would go out of business within the next four months.

XL was still taking bookings last night, but shortly before 3am it was announced that efforts to secure a rescue package had failed and administrators had been called in.

Chief executive Phil Wyatt said he was "devastated" at the company's collapse and apologised to his customers and employees.

Speaking at a press conference at the Hilton Hotel at Gatwick Airport in West Sussex, he admitted the company had debts of £143 million but insisted it did not have to fail.

In an emotional statement, he said: "Up until 9pm last night there was dialogue with the CAA and individuals were coming forward with money potentially to put into the business."

Mr Wyatt said XL's aircraft were sitting on runways around the UK ready to bring the holidaymakers home but were not allowed to take off.

He warned that the CAA had a "huge challenge" on its hands to bring back the 67,000 people currently overseas on XL holidays.

"It's going to be the most challenging airlift, I believe, that anyone has undertaken," he said.

Among the frustrated XL customers at Manchester Airport this morning were the Penman family, who missed out on a holiday in 2007 so they could go on a dream trip to Florida this year.

Tom Penman, 42, a youth education manager from Douglas in Lanarkshire, Scotland, said: "It's shocking. We've saved up for two years and now the children are in tears. It's the last family holiday.

"We didn't go on holiday last year to save up for this one. Now we're scrambling for tickets and we are stuck."

The family planned to take a train from Manchester to Glasgow and then fly to Orlando via Philadelphia in the US.

Mr Penman said: "We bought all the theme park tickets already and it was meant to be a holiday of a lifetime.

"I'm annoyed that some people knew about this yesterday and lots of passengers were re-booked before this morning.

"I couldn't believe it when I found out."

Among the other victims of the holiday firm's collapse were a couple who were robbed at gunpoint on a safari holiday in Namibia earlier this year.

Maggi and Nick Bradgate arrived at Gatwick Airport, XL's main base, at 4am to start their two-week holiday on the Greek island of Naxos.

There they were handed a piece of A4 paper telling them that holiday company Kosmar, the division of XL they booked with, had gone bust.

Mrs Bradgate, a gardener from Crowborough, East Sussex, said: "After our traumatic experience in February all we wanted to do was to get away for two weeks in the sun.

"But after what happened to us before, all I can do is laugh - at least we're alive."

After spending a fruitless morning trying to find another flight, the couple are now considering a walking holiday in the West Country.

Kroll, the firm brought in as administrators for XL, said most people who booked holidays with the troubled tour operator should be eligible for a refund.

Those who paid by credit card or used a tour operator affiliated to the Air Travel Organisers' Licensing (Atol) scheme should get their money back.

In some cases travel insurance and payment by Visa debit card also offers protection.

But people who booked a flight directly with XL Airways and paid with another kind of debit card will not be protected - and will have to pay again to get a flight home.

They can make a claim for their expenses through Kroll, but there is no guarantee this will be successful.

The CAA has set up an emergency helpline - 0870 5900 927 from the UK and +44 289 185 6547 from abroad - for "distressed customers".

Holidaymakers can also call the administrator's helpline from overseas on +44 208 242 4783 or on 0800 068 8991 from the UK.

The XL group companies that have gone into administration are: XL Airways UK, Excel Aviation Ltd, Explorer House Ltd, Aspire Holidays Ltd, Freedom Flights Ltd, Freedom Flights (Aviation) Ltd, The Really Great Holiday Company plc, Medlife Hotels Ltd, Travel City Flights Ltd, and Kosmar Villa Holidays plc.

A spokesman for the CAA said: "The CAA met XL and potential investors late yesterday evening.

"The investors confirmed they had no new money to invest in the timescale set by the company.

"The XL board director present confirmed to those potential investors that without new money immediately, administration was inevitable within hours as the company had to pay for its fuel in cash in order to fly."

Stuart Mackellar, a partner at Kroll appointed as joint administrator of XL, said they were still looking to save the firm.

Liquidation was "well down the line", he said, adding: "We are not thinking about liquidation at the moment. We are thinking about a rescue plan for the survival of parts of the business."

Transport Secretary Ruth Kelly said everything possible was being done to get stranded holidaymakers home.

West Ham Football Club, which is sponsored by XL Holidays, said it was "saddened" for the company's customers and hoped a speedy solution would be found.

The CAA stressed that the decision on whether or not to allow XL's aircraft to fly was "entirely one for the administrators".

A spokesman said: "The CAA confirmed it would leave licences in place to enable flying to continue if the administrators so decided and the administrators decided against continuing to fly."

In the US, many Britons were stranded at Orlando Sanford International Airport in Florida.

An airport spokesman said: "Unfortunately, customers who booked either through xl.com or xl call centres are not Atol-protected."

They would be "ineligible for a refund from Atol" for their return flight and were urged to check their travel insurance policies, he said.

But he added that those who booked with an Atol-protected XL Leisure Group tour operator would be able to stay in their hotel or villa and complete their holiday "in most cases".

He said the CAA would arrange a flight to bring these customers home.

The XL Leisure Group said an emergency helpline - +44 289 185 6547 - had been set up for "distressed customers".

Holidaymakers abroad were advised to dial +44 208 242 4783, while those in the UK should call 0800 068 8991.