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CAA steps in after tour operator Globespan ceases trading

Direct News Source

16-Dec-2009 Edinburgh-based tour operator The Globespan Group PLC, trading as Globespan, was placed in administration today and the Civil Aviation Authority (CAA) has stepped in to protect customers on its package holidays. Customers who booked package holidays with Globespan will be protected by ATOL and can complete their holidays. Customers with package holidays who are yet to travel will be able to claim a refund.

As a result of the appointment of PricewaterhouseCoopers as administrators, Flyglobespan flight operations will cease this evening. Airlines are outside the ATOL Scheme, so people who booked directly with Flyglobespan are not protected. Airline customers who were due to fly back to the UK are advised to make alternative arrangements with other airlines.

Globespan held Air Travel Organiser's Licence (ATOL) 701, and operated package holidays from Scotland to holiday resorts in Europe, Egypt, Florida and Canada. It also operated a smaller holiday programme from Gatwick, Manchester and Belfast airports. The company sold holidays through travel agents and direct through its website.

A CAA spokesperson said: "The Globespan Group PLC includes two companies, Globespan, a tour operator that sold package holidays protected by ATOL, and Flyglobespan, an airline whose passengers are not ATOL protected."

Globespan
Customers who are currently abroad on package holidays booked with Globespan are protected under the CAA's ATOL scheme. The CAA will therefore be making arrangements to bring these customers home after they have completed their holidays. All future holiday bookings are cancelled. Customers are advised not to travel to their UK airport, but to claim a refund.

Globespan customers who are currently abroad should contact the CAA for more information on 0044 203 441 0846. Globespan customers with forward bookings can contact the CAA for more information on 0844 856 2585.

The CAA is currently issuing the following advice for customers who have a package holiday booking with Globespan:

Globespan customers currently on holiday
The CAA understands there are approximately 1,100 ATOL protected customers currently abroad on holiday, in Egypt and the Mediterranean.

David Moesli, Deputy Director of the Consumer Protection Group, said, "Customers abroad who have booked a holiday package with the tour operator Globespan are ATOL protected. We are making the necessary arrangements to allow people who are currently on a package holiday with Globespan to complete their holidays and fly home. Customers will be booked on to new flights by the CAA to bring them home. We are making arrangements for overseas representatives to provide information to Globespan customers."

Globespan customers due to go on holiday
There are an estimated 27,000 customers with forward bookings for air holiday packages. All departures from the UK are now cancelled and customers are advised not to go the airport. They should instead claim a refund.

Flyglobespan
As a result of the appointment of PricewaterhouseCoopers as administrators, Flyglobespan flight operations will cease this evening. The CAA understands there are approximately 3,400 Flyglobespan customers currently abroad in Spain (including the Balearics and Canaries), Portugal, Cyprus and Egypt.

The Edinburgh based airline operated low fare scheduled services from Edinburgh and Glasgow airports to points in Europe, Egypt, the US and Canada. It also operated from Aberdeen, Gatwick, Manchester and Belfast airports.

Flyglobespan passengers already abroad will need to make their own arrangements to return to the UK using alternative airlines. Other airlines may make available special 'repatriation' fares to help Flyglobespan passengers - these are usually available, by telephone only, within a few hours of an airline going bust (but maybe not immediately) and last about two weeks.

Information about alternative air services is available on the CAA website.


There is also information about consumer rights on the Directgov website. In addition, the Foreign Office website can be accessed at www.fco.gov.uk

Flyglobespan customers who paid by debit or charge card should contact their card company for advice about full or a partial refund where only part of the journey has been completed. Customers with travel insurance should check their policy to see whether airline insolvency cover is included.

Customers of other tour operators booked with Flyglobespan flights should speak to their tour operator or their travel agent to find out whether or not they are able to travel.

In addition, there are an estimated 90,000 customers with forward bookings for Flyglobespan flights.