Scottish airline collapse leaves 5,000 stranded abroad

by Gill Montia

Story link: Scottish airline collapse leaves 5,000 stranded abroad

Edinburgh-based airline, Flyglobespan, has been placed in administration.

According to Scotland’s Daily Record, around 5,000 holidaymakers have been left stranded abroad and a similar number have had their Christmas and New Year holiday plans disrupted.

Meanwhile, the BBC reports that the Civil Aviation Authority (CAA) is preparing to repatriate around 1,100 of the airline’s passengers, although over 3,400 others will be making their own way home, as they booked direct with the carrier are not covered by the ATOL insurance scheme.

Around 90,000 people who have forward bookings with Flyglobespan could also face losing out financially.

Last week, the Government announced a review of the ATOL scheme, which was set up in the 1970s.

Transport Secretary Lord Adonis said he wants to clarify the situation for holidaymakers who opt to “mix-and-match” carriers and accommodation, rather than buy a straight ATOL protected package from a travel agent.

The CAA came out in support, saying: “We believe it is right that anything that appears to the consumer to be a package holiday when booked is covered by ATOL and that people are clear that this is the case.”