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Thursday, 9 February 2012

Collapse of XL Leisure Group

  • Published: Friday, 12 September 2008

The XL Leisure Group ceased trading as of today (12 September 2008). The Civil Aviation Authority (CAA) has issued advice and will be arranging for people currently abroad with XL Leisure Group (XLLG) UK tour operators to complete their holidays and fly home.

The CAA estimates that there are 50,000 tour operator customers of XLUK abroad, and a further 10,000 abroad with XL Airways, and 25,000 with other tour operators who shared the XL flights. A further 200,000 customers have advance bookings with the XL tour operators.

Advice to passengers

Passengers yet to travel

All future XLUK tour operator holidays are now cancelled and people with advance holiday bookings will not be able to travel. Outbound customers are advised not to go to their departure airport. Customers who booked with tour operators will be able to claim a full refund from ATOL. Information on how to claim is available on the Atol website

Affected tour operators

XLUK was the UK’s third largest tour operating group and included four UK tour operators:

  • The Really Great Holiday Company PLC trading as: Cruise City, Excel Holidays, The Florida Skytrain, Transatlantic Vacations
    Travel City Direct, and Travel City International.
  • Freedom Flights Limited
  • Aspire Holidays Limited
  • Kosmar Villa Holidays PLC trading as Kosmar Holidays

Passengers currently abroad

If you booked a package holiday with an XLUK tour operator (see list) or a flight with Freedom Flights then the Civil Aviation Authority’s ATOL scheme covers you and you will be flown home without needing to pay any money.

If you booked a package holiday or flight through another tour operator and were travelling on an XL flight then the tour operator covers you and you should be flown home without needing to pay any money. Please contact your tour operator.

If you bought only a flight from XL Airways through xl.com or a travel agent, even though you are not covered by the Civil Aviation Authority’s ATOL Scheme, the CAA will endeavour to bring you home with the minimum of delay. However, there will be a fee to cover the cost. You are not obliged to use the CAA arrangements.

Contact information for ATOL customers

 The ATOL website has advice for people abroad and people who have booked holidays with the Group. It will be regularly updated as more information becomes available on new arrangements for inbound flights. People who have booked but are yet to start their holiday should also speak to their travel agent.

The CAA has set up an emergency helpline from 06.00 on 12 September. Customers are asked to check the ATOL website before telephoning because the answers they need are likely to be found there, and to call only if there is an emergency.

  • Customers abroad: +44 (0) 2891 856547
  • Customers in the UK with advance bookings: 0870 5900927.

Further information

XLUK tour operators flew principally from London Gatwick, Manchester, Newcastle, Birmingham, Bristol, Nottingham and Glasgow airports. XLUK arranged holidays in the main holiday resorts of the Mediterranean including Greece, Turkey and Cyprus, as well as the Canaries, Portugal, Malta and Egypt. It also operated long haul holidays in Florida and the Caribbean. The majority of holidays were sold through travel agents.

The CAA is working with the Group’s Administrator, Kroll, major tour operators, including Thomson, First Choice, Thomas Cook and Virgin Holidays, and airlines to ensure that UK customers currently abroad are taken care of. Arrangements will be made to pay hotels and in-resort staff to ensure that holidaymakers that booked with XLUK tour operators can complete their holidays and fly home.

Since XL Airways is no longer operating, flights to bring people home will be made with other airlines. The CAA plans to operate these flights as close as possible to the original schedule and we ask customers to be patient while these arrangements are being made.

People who have made advance payments will be able to claim refunds. The CAA advises customers to see their travel agent and ask whether their booking can be transferred to another holiday. Travel agents and customers will be able to download claim forms from the ATOL website.

XL Airways

 The Group’s UK airline, XL Airways (XLA), also sold seats direct to the public. People who booked with the airline are not ATOL protected. An estimated 10,000 passengers are abroad that booked direct with the airline.

Customers with advance bookings paid by credit card should contact their card issuer or contact their bank if they paid by debit card. If they took out travel insurance, they should check whether their policy covered airline insolvency.

The Group also operated separate airlines in France and Germany. XL Airways France (operating under flight numbers starting XLF) and XL Airways Germany (GXL) are unaffected by this failure.

Medlife Hotels

 In addition, the Group operated an accommodation agency called Medlife Hotels. People who booked with this company are not ATOL protected. Those with advance bookings paid by credit card should contact their card issuer or contact their bank if they paid by debit card. If they took out travel insurance, they should check whether their policy covered holiday company insolvency.

Richard Jackson, Director of the CAA’s Consumer Protection Group, which is overseeing protection arrangements, said today: “This is a huge undertaking and we are working closely with the travel industry to protect and bring home the customers of the failed tour operators. Hotels and other suppliers will be paid so that those protected by ATOL will be secure while arrangements to fly them home are made. Flights to bring people home will differ from their original timings, but our aim is to minimise disruption to holidaymakers as far as we possibly can. We ask customers to be patient while these arrangements are made.”

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