BBC News announced today that Flyglobespan has canceled all flights and entered administration. This appears to be following the collapse earlier in the day of a financing deal the airline was negotiating with Halcyon Investments.
The biggest airline based in Scotland, Flyglobespan operated 12,000 flights in 2008, and carried over 1.5 million passengers. Unfortunately the airline posted a loss of £19 million in 2008, though earlier this year an announcement was made that an operating profit of £1.2 million had been achieved. That was insufficient to keep the company solvent however, and when the financing deal fell through there was apparently no alternative but to cease operations immediately.
The cessation of all flights has left approximately 4,500 people stranded outside of the UK. The CAA has stated that it will be able to help about 1,100 passengers to return home since their flights were purchased as part of a vacation package. However, the remaining passengers who purchased tickets directly through Flyglobespan’s website will most likely not be able to get a refund for their tickets, though the Department of Transport in the UK stated that they should be able to obtain a special “repatriation” fare from other airlines to return home.
Aside from passengers who suddenly find themselves stranded away from home, or with suddenly worthless tickets for future travel, there are now hundreds of Flyglobespan employees who find themselves jobless barely a week before Christmas. Flyglobespan’s website has been taken down and replaced with a page advising customers what their options are and whom to contact for assistance. Passengers with questions are advised to contact a helpline that has been set up. Passengers in the UK can call 0871 271 9000, and those outside the UK can reach the helpline at +44 141 332 3233. Please visit the webpage above for the hours the helpline is available.
As of now, there is no indication of whether Flyglobespan will resume operations at some point in the future.