Travel company Holidays 4 U collapses
A tour operator offering flights and packages to Turkey goes into administration following financial difficulties, leaving 12,800 UK holidaymakers abroad.
Administrators announced on Wednesday that Brighton-based company Holidays 4 U, which also traded as Aegean Flights, has become the latest victim of the economic downturn.
The tour operator – which offers flights and packages to Turkey – currently has 12,000 holidaymakers outside the UK.
Administrators PricewaterhouseCoopers (PwC) said the Civil Aviation Authority (CAA) would be responsible for getting home those already abroad as long as they had booked flights as part of a package holiday.
These people are covered by the CAA’s Air Travel Organisers’ Licensing Scheme (Atol).
The administrators said that passengers booked with the company on future flights, including tonight’s flight from Manchester to Dalaman in Turkey at 9pm, should not travel to the airport and should refer to the CAA for more information.
The administrators added that the Atol scheme may also reimburse passengers who booked a package holiday and had not yet travelled.
Passenger advice
Passengers who booked through a travel agent were advised to contact that agent in the first instance.
The Atol website at www.caa.co.uk is being updated regularly to provide details of return flights for passengers currently on holiday.
Passengers who did not book through an agent but booked direct with the company are directed to the CAA website for more information on return flights if they are currently on holiday or for information regarding refunds.
Customers in the UK were urged to call the CAA call centre on 0844 4933 037. For those in a resort outside the UK call the CAA on +441614445810.
Simon Calder, travel editor at the Independent newspaper, told Channel 4 News that a holiday company going bust in peak season shows just how bad the industry is finding the economic downturn.
“This is an awful moment, but not for the 12 or 13,000 people who are on holiday at the moment,” he said.
“All they need to do is stay by the pool and order another drink as they will be flown home pretty much as normal by the Civil Aviation Authority.
“It’s awful for the 20,000 or so people booked to travel in the next few weeks with Holidays 4 U who are finding that, although they will get their money back eventually, right now they need a holiday and the prices for alternatives are starting to rocket because the operators know there is going to be a big spike in demand.”
Financial problems
The company has 18 employees and had an annual turnover of about £35m.
“The company has suffered because of the difficulties faced by the travel industry during 2010 and 2011, as a result of the economic downturn,” Ian Oakley-Smith, joint administrator and director at PwC said.
“The director has determined that the business is no longer able to trade and placed the company into administration.
“The company will cease operating with immediate effect. Regrettably most staff have been made redundant.
“We will be working closely with employees affected by this decision to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.”
Trading as Holidays 4 U, the company flew from a number of UK airports. including Belfast, Cardiff, Bristol, Gatwick, Edinburgh and Glasgow.
The company generally used Onur Air, a Turkish low-fare airline. Under the Atol scheme, most of the 12,000 already abroad will be able to carry on with their holidays and then be able to get flights home.
According to reports Holidays 4U had about 40,000-50,000 forward bookings and was licensed to carry 66,000 passengers during the July to September 2011 period and more than 100,000 a year.