Travel Tips

Scottish Airline Flyglobespan Collapses, Leaving Holiday Travelers Stranded

Terminal waitingHundreds of thousands of travelers narrowly dodged a bullet this week when the High Court legally banned the British Airways’ cabin crew strike, but the same cannot be said for the 10,000 people who booked their holiday flights with Flyglobespan.

The Scottish airline collapsed this week, grounding all Christmas flights and stranding thousands.

Keep reading to find out what led to parent company The Globespan Group’s downfall and what it could mean for other companies and travelers.

The recession has hit British travel companies particularly hard. Compared to 2008, the number of foreign trips taken by travelers in the UK has fallen by 15 percent.

Just last month, Holiday Options, a travel services specializing in Mediterranean packages, and Budget Travel, Ireland’s largest operator, both went out of business.

Even more tour companies could have followed if the BA cabin crew had walked out, forcing them to provide refunds for customers who booked with the airline.

Flyglobespan CollapsesThose travelers who booked packages with Globespan will be protected by the Air Travel Organizers’ Licensing insurance scheme, but the tens of thousands of others who just booked flights with Flyglobespan will likely be out of luck.

Other UK airlines are offering help to those passengers who are stranded for the holidays. Unlike the price gouging that occurred earlier in the week when a BA strike seemed likely, Ryanair, EasyJet and Flybe have agreed to put a cap on fares from Flyglobespan destinations. They are also offering “rescue” deals ranging from £60-£90 for passengers stuck in France, Switzerland, Spain and more.

Learn more: Should I Purchase Travel Insurance?

Flyglobespan has suggested that those customers who have travel insurance contact their provider to see if they are eligible for a refund. Those who paid by credit or debit may also be able to get their money back under the Consumer Credit Act of 1974 and are encouraged to get in touch with their card issuer. Travelers seeking additional instruction should visit the Flyglobespan Web site at www.flyglobespan.com.

By Dan Bence for PeterGreenberg.com.

Related links: Daily Mail, The Daily Telegraph

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