XL failure bill hits £89m

XL failure bill hits £89m

The bill for the failure of XL Leisure Group will come to £89 million, of which £37 million will be paid by the Air Travel Trust Fund financed by the trade.

The bond provided by XL will cover £42 million and the remaining £10 million will be met by credit card companies.

The Civil Aviation Authority revealed the figures on Monday in the consultation document outlining its case for a rise in the consumer protection levy on package holidays.

XL collapsed last September with tens of thousands abroad and 80,000 advance bookings.

The two-week operation to repatriate passengers cost £21 million and the CAA estimates the final cost of refunds at £65 million, with an additional £3 million going on administration.

XL was required to provide a bond last year when most companies no longer had to, leading some in the trade to question whether the company should have been allowed to trade.

The CAA justifies its renewal of XL's licence in the document on the grounds that refinancing was advanced and it considered the group's business plan credible.

Comments

This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in News