Britain’s third biggest package tour operator, XL Leisure, has plunged into administration, grounding all of its flights and leaving some 85,000 passengers stranded overseas.
In a statement on its website, the group blamed high fuel prices, the economic slump and a failure to reach a refinancing deal with creditors for its failure.
Its entire fleet of 21 aircraft was grounded at 1.00am this morning, September 12, and has left holidaymakers in more than 50 destinations around the world stranded and unable to return home.
XL has more than 2,000 employees and is understood to owe large sums of money to main lenders Barclays and Straumur. Its total debt was more than £200 million, according to company documents.
The tour operator trades under a range of brands, all of which have been affected. They include XL Airways, Excel Aviation, Explorer House, Aspire Holidays, Freedom Flights, The Really Great Holiday Company, Medlife Hotels, Travel City Flights and Kosmar Villa Holidays.
According to its last full set of financial results it lost £24 million on a turnover of £550 million in 2007.
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