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Saturday 19th of December 2009
December 17, 2009    

Scotland’s biggest airline collapses

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by Kay Murchie
”Scotland's

Edinburgh-based Flyglobespan, which is Scotland’s biggest airline, has been placed into administration.

The news brings more woes for the airline industry and further travel chaos for passengers.

PricewaterhouseCoopers, which has been appointed Administrators, said Globespan Group, which operates Flyglobespan, have been in contact with around 5,000 passengers who had booked or were already travelling with the airline.

Bruce Cartwright of PricewaterhouseCoopers said: “Unfortunately I am obliged to confirm that, the Group will not longer be able to operate flights.

“Our focus right now is on assisting those passengers who need to complete return journeys and communicating with those who have future reservations.

“We would strongly advise those passengers who had expected to travel tomorrow to remain at home or make alternative arrangements as there is no prospect of their planned flight taking place,” added Mr Cartwright.

Rival airlines Ryanair and easyJet are both offering “rescue” fares for stranded travellers and a helpline has been set up. Call 0871 271 9000 from the UK and 44 141 332 3233 from the rest of Europe.

Like many other airlines, Flyglobespan has been struggling amid the economic downturn and attempts to secure a financing deal for the airline with Jersey-based Halcyon Investments collapsed yesterday.

Many airlines have also been forced out of business as fewer people are travelling by air.

Earlier this week, the International Air Transport Association (IATA) said airlines will suffer losses of $5.6 billion (£3.5 billion) in 2010 - an increase from the $3.8 billion it originally predicted.

Flyglobespan, which was the sixth largest operator out of Edinburgh airport, made an operating profit of £1.2 million following a loss of £19 million the previous year.

Last year the airline, which employs about 800 staff, carried more than 1.5 million passengers and operated 12,000 flights.

The announcement comes as British Airways continues to attempt to prevent strike action which is planned from December 22 to January 2.

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1 Comment »

  1. Great news for raptors like easyJet and Ryanair which must be very happy to make business on the death of a noble airline.

    Ryanair press release says “Ryanair strongly advises all passengers to book airfares only with financially stable airlines. With over €2billion in cash reserves Ryanair is one of the most financially robust airlines in Europe”

    Comment by james — December 17, 2009 @ 10:03 am

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