Over 70,000 Affected After Flight Options Collapses
Thousands of holidaymakers are currently facing the prospect of losing or having
to re-book their summer holidays after another UK travel group ceased trading.
Last night aviation regulators worked hard to ensure that all 13,000 holidaymakers that were abroad when the travel company Flight Options and its main trading arm Kiss Travel collapsed at 5pm yesterday were able to return as planned.
This marks the third UK travel group to cease trading in just over a month, which has sparked concerns that other companies could follow before summer ends.
The Civil Aviation Authority (CAA) has urged all Flight Options customers that were due to leave before 6pm tonight to travel to airports as planned. "Because the company has failed at the height of summer, the CAA is also putting in place arrangements to allow people to travel out on their holidays for the next 24 hours, to minimise confusion and protect passengers," it said in a statement.
All holidaymakers with later bookings have been advised to speak to their travel agents to discuss their options for alternative arrangements, and consult their travel insurance companies if appropriate cover was purchased. Most other customers who booked flights to the Mediterranean for next month and beyond should be able to receive refunds as protection is offered through the CAA's Air Travel Organisers' Licensing (Atol) protection scheme.
Flight Option's demise means more than 200,000 people have now been affected as a result of recent travel company collapses the latest following Goldtrail Travel which failed in mid July and Sun4U last week. It is possible that some of those affected by last night's collapse could have been caught-up in Goldtrail's failure and were making their second attempt at a holiday as Kiss covered many of the same routes.
A number of underlying factors are likely to have contributed to the recent gloom in the travel industry, which include the closure of airspace due to the volcanic ashcloud, combined with months of uncertainty over British Airways flights from the cabin crew dispute and general uncertainty after the recession hit family finances hard.
Gary Ash, chief executive of Flight Options, told the travelweekly website: "I am devastated by this unfortunate turn of events. Over the past nine months we have been fighting in a difficult market.
"However, recent developments have made it impossible to continue the operation of the companies. He said the company's last annual results filed for the year ending 31 October 2009, revealed Kiss Flights had made an operating profit of 500,000.
Bob Atkinson, a travel expert with the website travelsupermarket.com said: "Unfortunately for some, Kiss Flights catered for many of the same routes as the recently collapsed Goldtrail. It may be the case the some unlucky holidaymakers will be affected all over again. At this stage it is unclear how many passengers will be protected by the Atol scheme and we are waiting for advice from the CAA.
"This is sadly yet another collapse in what could become a rash of company failures this autumn."
The CAA provided some reassurance after saying that most Flight Options customers will be covered by Atol as most of its business came from selling seats on planes. But it also expressed fears that many consumers hit by earlier collapses will lose out because the components of their holidays were sold separately which may not be seen as a 'package holiday'.
For example, only those who paid for flights, accommodation and hire car with a single credit card transaction will be protected under the Atol scheme. Those that paid for these components separately are not.
Flight Options also traded under several other names, including Africa Options, America Options, Canada Options, Caribbean Options, Dubai Options, Elgouna Options, Elgouna Villas and Apartments, Florida Options, Florida Owners Club, Golf Options, Holidayops.com, Orlando Villas Direct, Sportops.com, Travel Options Direct and Travelplus.
Customers who are still abroad have been told to contact the CAA for more information on 0044 161 444 5811. For general advice about refunds under the Atol scheme customers should visit the CAA website or call 0844 571 7262.
by: Sam Gooch
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