Sealink

Reports UK press...

http://business.timesonline.co.uk/to...cle4735790.ece

The XL Group is Britains 3rd largest tour operator, behind Thomson/First Choice and Thomas Cook/Airtours.

Showbizguru

And gone ...

ITN - 1 hour 37 minutes ago

Around 50,000 British holidaymakers are stranded overseas after the collapse of one of the UK's biggest tour operators.
(Advertisement)

XL Leisure Group has grounded its fleet of planes after failing to secure a multi-million pound rescue package.

An operation is now under way to get customers home from places like Florida and the Caribbean.

XL Airways provided flights to more than 50 destinations across Europe, Africa and the US.

Passengers yet to travel should make alternative arrangements, while those already on holiday will be brought home on flights arranged by the Civil Aviation Authority.

Customers who booked through four tour operators - The Really Great Holiday Company, Kosmar Holidays, Freedom Flights, and Aspire Holidays - are protected under the Air Travel Organiser's Licenses (Atol) scheme.

OttoMH

Oh to be stranded in the Carribean and Florida... lucky buggers!

Those still in Blightly.. bad luck.. best of luck with your CC companies and/or ATOL

MKEbound

Until have to pay 7 or 8 times the price of their original ticket to get home

gosha83

If a large U.S. carrier was to all of the sudden go under, is there some sort of an ATOL-like program that would get stranded passengers abroad back to the U.S., or would they have to rely on AmEx/Visa/MasterCard to get them back for a pretty penny?

sbm12

For a couple years after 9-11 all carriers were required to honor tix of a bankrupt carrier on a standby basis for $50 or something like that. That requirement has lapsed but with the most recent failures (SkyBus, Aloha, ATA) the other carriers have, for the most part, offered such an option. But there is no requirement that they do so at this time.

I did find it interesting in one of the articles I read about the topic that apparently folks who booked directly were less protected than those who used a travel agent. I have no idea why that would be unless the TA's insurance somehow covers it, but it was an interesting tidbit.

mrx900

I'm assuming that's what the USS Abraham Lincoln is for.....of course, dont try using any upgrade awards on those seats--and no lobster bisque served...just MRE rations.

Jalinth

Some places have an insurance scheme covering travel agents and their clients for blow-ups such as this. So one reason to use a TA if you can find a good one.

sbm12

I do not get the impression that US-based TAs carry such coverage for their clients. Am I mistaken?

Sealink

If you booked a flight only (ie: not as part of a package, and a package only has to include one night's accommodation or car hire, for example) and it was directly with XL Airways you do *not* have any cover. ATOL only applies to package holidays, or travel agents with ATOL licenses, so in a minority of cases clients can get a refund via the credit card company.

If you paid with a debit card then you are an unsecured creditor , again only if you booked just a flight, directly with the airline (or via a non ATOL agent).

Jalinth

It depends on the country/province/state. In Canada, some provinces have such a scheme but not all of them AFAIK. Some individual US states might have it but it depends on how they regulate travel agencies. The US government definitely doesn't have such a plan and neither does the Canadian government.

TA

I'm a little bit peeved at how even the BBC is calling the situation, at times, "a human tragedy". Are you kidding me? There are human tragedies, but this is far from one. Holidaymakers delayed by a few days because an airline went bankrupt? Please.

And as unfortunate as it is, why is the government bailing out those people stuck abroad? Can they really afford to do this right now? People who are fortunate enough to be traveling abroad are not exactly the top priority of govt expenditure, are they, considering what shape other govt services are in at the moment?

sbm12

Agreed that it is about as far from a human tragedy that it can possibly be. As for the government bailing them out, my understanding from posts above is that the ATOL holds a bond from the carriers, effectively enough money (or close to it) for the ATOL to charter flights if the airline goes under. It is similar to the CC companies holding some amount of ticket revenue back from the airlines in case they go under and the CC companies need to refund charges to the customers.

B747-437B

Close. The bond is not associated with the airline (which is why those people who booked directly with the airline are stuck up the proverbial creek without a paddle) but rather with the tour operator and/or travel agent who sold the ticket.

TheEngineer

And of course just to muddy the waters even further you may be covered if you used a Visa Debit Card and go through the "Charge Back" procedure. This applies in the UK, don't know about other countries.