| |
The climax of events in the travel industry this week will, arguably, be XL Leisure’s declaration of bankruptcy. With more than 85,000 people already stranded abroad as a result of this collapse and another 200,000 facing the grim prospect of losing their holiday or both their holiday and money, the whole development joggles our memory to similar issues months back.
Passengers stranded
In March this year the chaos that saluted the launch of Heathrow’s Terminal 5 was so overwhelming that hundreds of flights were cancelled leaving passengers perpetually stranded. In addition, many had their luggage either lost or damaged or misplaced. In the end, while those with adequate insurance cover were compensated by their insurers, those without insurance ended up losing both ways. That experience, as it emerged, reinforced the need for travellers to ensure they were always sufficiently covered by their travel insurance policy before heading off. Whether this piece of advice was heeded or not it will only be known now, with XL’s misfortune.
Another issue this unfortunate incident reminds us is the repeated reminder from experts in the travel insurance industry that travellers should avoid independent booking and use tour operators instead. The risk, as it now stares scores of hundreds in the eye, is that they may end up having to pay for certain essentials from their own pocket or be left stranded in the event of developments like this collapse.
Up until now, many of the British travellers stranded abroad may still be unsure what next will happen or how they will offset bills yet to be paid for or even pay their fare back home. For the avoidance of doubt, the collapse means that all flights between the airlines’ over 50 destinations have been cancelled and all their planes grounded. Further more, worsening the anguish of passengers, XL has failed to reach agreement with creditors on a life-line worth million of pounds. This left the company, which is the UK’s third largest package holiday operator, with no option but to invite administrators earlier today as it prepared to declare bankruptcy.
CAA aiding passengers
Yet all is not lost for many passengers too. They have some reasons to be optimistic, at least, as the Civil Aviation Authority (CAA) is wading in to mitigate their distress. A spokesperson, David Clover reportedly commented that they were already making plans, in collusion with the travel industry, to organise flights for the repatriation of those stranded abroad. “Clearly though, with XL Airways no longer operating, we are having to bring in substitute aircraft to bring people home,” said Mr Clover. But this may shock many of the affected travellers as there are conditions are attached.
Those with package deals, said the CAA, would have their repatriation taken care of by the Air Travel Organisers’ Licensing (ATOL), which provides cover for them, just as refund will be made for those with advanced bookings – who used a tour operator affiliated to the ATOL. But the fate of those who paid using their debit cards directly via XL Airways’ website or call centres hangs in the balance. The only hope of compensation for such travellers is their travel insurance policy, if they had one. Otherwise, they could lose either way.
|