Business News
British holiday operator folds over rising fuel costs
Sep 12, 2008, 6:33 GMT
London - Britain's third-biggest travel operator and package holiday group, XL, has gone into administration as a result of spiralling fuel prices, leaving thousands of holidaymakers stranded, the company said Friday.
The XL Leisure Group, which operates XL airlines, flies to 50 destinations, mainly in the Mediterranean. All its flights have now been cancelled and its aircraft grounded.
The Civil Aviation Authority (CAA) said 85,000 people could be stranded abroad and 200,000 have made advance bookings with the company.
The XL group, which is based in Crawley, south of London, runs an airline and owns several travel companies, including Travel City Direct, Medlife Hotels Limited, The Really Great Holiday Company, Freedom Flights and Kosmar Holidays.
The group, which carried 2.3 million passengers last year, has 1,700 employees worldwide.
'The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding,' a statement on the website said.
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