Scotland's biggest airline goes bust

by GD Wed 16 Dec 2009, 6:58 pm

The airline, Scotland's biggest, carried more than 1.5m passengers in 2008

Scotland's biggest airline, Edinburgh-based Flyglobespan, has been placed in administration.
Last year the airline, which employs 600 staff, carried more than 1.5m passengers and operated 12,000 flights.
A statement is expected soon from PricewaterhouseCoopers, (PWC) which has been appointed as administrator.
The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down today.
Many of those flying with the airline booked online or direct with the company and not through a registered travel agent, leaving them potentially out-of-pocket.
Flights booked this way will not be reimbursed, though those who booked with a credit card or had arranged their own insurance may be covered.
Package holiday bookings however, will normally be covered by ABTA.
Operating profit
On the Flyglobespan website its Christmas and New Year schedule shows flights to Tenerife and many other winter holiday destinations from Edinburgh, Glasgow and Aberdeen.
Ryanair has said it will launch a Flyglobespan "rescue fare" to and from Edinburgh and Prestwick airports for any passengers affected.
The Ryanair offer applies to flights into and out of Prestwick to Alicante, Faro, Gran Canaria, Lanzarote, Malaga, Palma and Tenerife, and into and out of Edinburgh to Alicante, Gran Canaria, Lanzarote, Malaga and Tenerife.
Earlier this year, Flyglobespan announced it had made an operating profit of £1.2m following a loss of £19m the previous year.
Set up in 2002, the company operates from five UK airports, including Prestwick, Edinburgh and Aberdeen.
Earlier this year, it pulled its services out of the Durham Tees Valley airport, blaming the worsening economic climate. (from BBC)

I think that the airline/travel companies are suffering big time at the moment