12 September 2008

XL Group Collapses affecting more than 1/4 million

Today XL Group including a variety of travel sellers and the airline abruptly shut down after failing to secure funding.

We reported on the struggles several weeks ago when Zoom also went out of business.

According to the UK's regulatory body - the CAA, the collapse will affect 85,000 people currently due to depart today or already on their trips. A further 200,000 forward bookings are also affected.

The 4 airlines in the group (UK, Ireland, Germany and France moved about 4 million passengers in 2007. So this is a large chunk of traffic that has been carved out of the UK specialist travel niche.

Its pretty nasty out there.

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