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When A Charter Carrier Goes Bust  
User currently offlineSpud757 From United Kingdom, joined Nov 2007, 338 posts, RR: 0
Posted (6 years 1 week 3 days 5 hours ago) and read 2691 times:

What happens to tour operator bookings in the UK when the charter airline operating those flights goes bust?

Just say (as an example) XL went belly up this year. What would happen to all those holidays sold for next year where tour operators had chartered XL for the flights? Is there sufficient capacity out there right now that another carrier could be chartered?

9 replies: All unread, jump to last
 
User currently offlineDiesel1 From UK - Wales, joined Mar 2001, 1638 posts, RR: 11
Reply 1, posted (6 years 1 week 3 days 5 hours ago) and read 2655 times:

For the holiday makers already abroad... they will be accommodated on existing flights, or other airlines will be chartered to repatriate them. Thats what ATOL is for.

Where tour operators have aircraft chartered from the airline that has ceased ops, other airlines will step in to operate these flights. Often these will have been arranged in the days / hours leading up to the demise of the airline and the changes may not be evident to the travellers as schedules will be broadly maintained.

For future flights (e.g. the following season) - the tour operators will re-contract elsewhere.

( As XL is operating, not a good example to use even as a "for instance" - as Futura unfortunately are in trouble, then a better example...  Sad )



I don't like signatures...
User currently offlinePlymSpotter From Spain, joined Jun 2004, 11655 posts, RR: 60
Reply 2, posted (6 years 1 week 3 days 5 hours ago) and read 2644 times:



Quoting Diesel1 (Reply 1):
( As XL is operating, not a good example to use even as a "for instance"

Well they are still at the moment... time will tell though



...love is just a camouflage for what resembles rage again...
User currently offlineSpud757 From United Kingdom, joined Nov 2007, 338 posts, RR: 0
Reply 3, posted (6 years 1 week 3 days 5 hours ago) and read 2640 times:



Quoting Diesel1 (Reply 1):
As XL is operating, not a good example to use even as a "for instance" - as Futura unfortunately are in trouble, then a better example...

point taken but XL was my example due to the discussion on the forums about their current finances and the fact i have a charter flight with them next summer (and hopefully XL will sort through their problems because they're a great charter airline from my experience)

Shame about Futura.


User currently offlineBCAL From United Kingdom, joined Jun 2004, 3384 posts, RR: 16
Reply 4, posted (6 years 1 week 3 days 4 hours ago) and read 2621 times:

Quoting Diesel1 (Reply 1):

I am not sure the statement "other airlines will step in to operate the flights" is totally correct. What happens is that the CAA, or more specifically its ATOL arm, will organise the flights to bring any stranded passengers home but they will not necessarily operate a flight for a trip that has not begun. Normally what happens is that unless another airline/tour operator has taken over the business of the failed airline/tour operator, your fare will be refunded from the bond that had been lodged with the CAA for the airline to have been granted its Air Tour Operators' Licence.

ATOL began in 1974 following Court Line's sudden bankruptcy when all their flights were grounded and as many as 50,000 holidaymakers stranded overseas with no means of getting home. As a result of this, the Association of British Travel Agents set up a fund to provide an insurance against such an event in future. Initially people booking an inclusive tour or charter flight had to pay a levy of 2.5% of their holiday/flight cost to cover the insurance, but this was later replaced by tour operators having to lodge a bond with the CAA.

(EDit) This applies in the UK only.

[Edited 2008-09-08 03:12:59]


MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
User currently offlinePlanesarecool From United Kingdom, joined Nov 2001, 4121 posts, RR: 11
Reply 5, posted (6 years 1 week 2 days 22 hours ago) and read 2349 times:



Quoting Spud757 (Thread starter):
Is there sufficient capacity out there right now that another carrier could be chartered?

There isn't sufficient capacity in the charter/package holiday industry as it is, let alone without a major player such as XL.

And XL are fine, this on going speculation is doing nobody any favours.


User currently offlineDebonair From Germany, joined Jan 2004, 2428 posts, RR: 4
Reply 6, posted (6 years 1 week 2 days 20 hours ago) and read 2216 times:

...also in Germany. But only if the tour-operator goes bust!

Your payments are protect by "Sicherungsschein" or "Reisepreissicherungsschein" (what a word!!) -letter of guarantee.

If a charter-company is closing its doors (like AeroLloyd), the tour operator is responsible to re-book passengers.


User currently offlineSpud757 From United Kingdom, joined Nov 2007, 338 posts, RR: 0
Reply 7, posted (5 years 12 months 2 days 21 hours ago) and read 1942 times:

Now that XL have gone bust... what happens to the holidays booked ahead from now, and for next years season that were originally booked onto XL flights where the charter company is still operating (for example Olympic and Libra holidays who used XL flights a fair bit).

Is there space out there in the charter market for another airline to step in a run the whole winter 08/09 and summer 09 flights for a tour operator that should have been flying XL.

One example: Mykonos (JMK). For the last few years this route was only flown charter from the UK by XL from LGW and MAN. TUI and Thomas Cook don't have Mykonos in their brochure. Typically the tour operators using these flights were Olympic, Kosmar and Libra for package holidays to Mykonos, Naxos and Paros. Kosmar have gone bust with XL so that leaves customers booking through Olympic and Libra plus maybe a few smaller tour operators. How likely are Libra and Olympic to find another airline with capacity to run these flights through the summer 09 season? Given the current climate with airlines reducing fleets, is the capacity out there? Air Malta was sub-chartered once or twice by XL for the route, would they be able to step in?


User currently offlineZBBYLW From Canada, joined Nov 2006, 1985 posts, RR: 6
Reply 8, posted (5 years 12 months 2 days 20 hours ago) and read 1850 times:



Quoting Planesarecool (Reply 5):
And XL are fine, this on going speculation is doing nobody any favours.

Its funny what a week does is it not?



Keep the shinny side up!
User currently offlineHumberside From United Kingdom, joined Dec 2005, 4920 posts, RR: 4
Reply 9, posted (5 years 12 months 2 days 17 hours ago) and read 1742 times:

The new Kiss Flights operation should fill a bit of the void, for example LGW-Kalamata

Olympic didn't use XL that much, especially at LGW.MAN; they use Monarch far more, and also ECA/EAF quite a bit. In some cases there are other charters to destinations that the smaller operators may be able to get seats on (such as Halkidiki and Skiathos). Otherwise it leaves Monarch as the only major 'independent' UK charter operation who may be able to pick up the slack. (I use quotation marks for independent since they are under the same ownership as Cosmos/Avro Flights but do flights for 3rd parties in the way an independent carrier would)



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