Edinburgh-based airline Flyglobespan has gone bust with hundreds of jobs lost, thousands of holidaymakers stranded, and with thousands more facing the loss of their holidays.
Flyglobespan operated cheap flights to European and North American holiday destinations such as Tenerife, Orlando, and Vancouver from Edinburgh airport, Glasgow airport, and Aberdeen.
There have been rumours that the company was on the verge of collapse for over a month, although it maintained it was securing last-minute funds to keep the company afloat. The company has also, in the past, been beset with flight delays and has been prosecuted by the Civil Aviation Authority for breach of safety regulations.
Today, the web site at Flyglobespan.com states that The Globespan Group (the company that runs the airline) "entered into Administration having suffered liquidity issues".
The statement for the administrators PricewaterhouseCoopers on the Flyglobespan home page says:
"Unfortunately, the Joint Administrators have been unable to continue trading the companies and therefore all flights operated by The Globespan Group plc or Globespan Airlines Ltd have been cancelled and the aircraft grounded."
The statement goes on to say that flights will be not be rescheduled. Customers who booked package holidays should be covered through the ATOL scheme and should be able to claim refunds for expenses incurred.
Customers who bought a flight only are unlikely to be covered by the ATOL scheme.
"Customers who have paid by credit card or Visa debit card should contact their card issuer in the first instance to determine whether they can claim a refund under Section 75 of the Consumer Credit Act 1974 and/or their insurance provider," says the statement.
"The Companies are unable to offer any refund to customers in respect of cancelled flights, holidays or accommodation. Any claims customers may have in connection with such circumstances should be sent to the Joint Administrators c/o Erskine House, 68-73 Queen Street, Edinburgh EH2 4NH."
The sudden collapse of the group, means that Flyglobespan customers who booked a flight-only, rather than a package holiday, who are stranded abroad, will have to foot the bill of their return flight.
"Unfortunately, those customers who have booked flights with Globespan Airways Limited are not ATOL protected. As a result, you will not be eligible for a refund from ATOL in respect of your flight home," says the statement.
A customer hotline has been set up: UK – 0871 271 9000 and from Abroad – +44 141 332 3233. Customers should read the statement at the Flyglobespan web site.