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XL fallout news
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ADMINISTRATORS.
Deadlock: Agents cling to XL cash
Despite the CAA payout, travel leaders are still
calling for stricter laws on financial protection
Chris Gray.
from agents so far, and estimate they will
ADMINISTRATORS for XL Leisure Group are retrieve £2.2 million in total.
MARK TANZER, pursuing agents for millions of pounds they are An Abta spokeswoman said members would
Abta chief executive holding in payments made for holidays with the normally be expected to hand over customer
“We remain concerned collapsed firm. payments to administrators, but many genuinely
the lack of transparency They are taking steps to recover the money felt they should withhold it because they were
makes it difficult for the from agencies after obtaining legal advice that owed money themselves. She advised agents to
industry and customers agents should hand it over. contact Abta’s legal helpline for advice.
to understand, and urge But the administrators are facing a “large Speaking at the creditors’ meeting into Kosmar,
the government again to volume” of disputes because agents are making Cropper said unsecured creditors, who include
review this issue.” counter claims for unpaid commission, rebates and the CAA and staff, would get at most only a small
reputational damage caused by the XL collapse. percentage of the money they were owed.
DERMOT BLASTLAND, Tui The disputes have arisen over money owed to
Travel managing director XL-owned firms including Freedom Flights, Aspire,
“We continue to urge the Medlifehotels, Kosmar and Travel City Direct. Travel City Direct: XL administrators confirmed
government to overhaul Creditors’ meetings for the companies, and XL a sale of Florida and Caribbean specialist Travel
this area of regulation Airways, were held at Wembley Arena this week. City Direct for £1.4 million was agreed in October.
for the benefit of the Joint administrator Nick Cropper said the total The deal is understood to be with Virgin Holidays.
British public and the amount of money owed by agents and direct An announcement is expected in the new year.
industry as a whole.” customers to XL operators was £10 million. ‘XL should not have folded’: Phil Wyatt, p10
The administrators have collected £600,000
DEREK MOORE,
Aito chairman
“It’s good the CAA is
upholding the integrity
of Atol arrangements.
However, the government
must ensure 100% finan-
cial protection for all.”
MIKE GREENACRE,
managing director,
The Co-operative Travel
“We shall continue to
encourage a government
review that establishes a
clear and simple position
for all consumers.”
each’ court case
OPENING SOON
The Italian Village
successfully represented Abta against the CAA in
at Beaches Turks & Caicos
2006, in anticipation of court action.
It is thought likely the case will be decided by
magistrates, rather than a Crown Court, but that
LUXURY INCLUDED
the loser could appeal for a High Court judgment.
This could then see a definitive judgment on
the law, an outcome that the criminal case is not
thought likely to provide because it will focus
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only on the details of the 20 alleged breaches.
If the case is heard in front of a jury at Crown
Court, the maximum sentence would be two
30
& Spa by 15 February 2009 for travel by 20 December 2009,
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For more information please contact your Business Development Manager,
years’ imprisonment or an unlimited fine.
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