Tenerife Forum - View Single Post - Flights have been grounded as XL Airways has gone into administration.

Delderek · 1st September 2008, 18:53

Popular airline to Tenerife appears to be in trouble

Leisure Group focus of refinancing speculation

XL Leisure Group is at the centre of speculation over refinancing plans.

Weekend newspaper reports claimed that the UK’s third largest tour operating group was in urgent refinancing negotiations.

Financing associated with fuel hedging positions is understood to be at the centre of discussions.

A spokesman for XL, which includes XL Airways and operator brands such as Kosmar Holidays, Aspire, Travel City Direct and Freedom Flights, reportedly said it was not close to breaching the terms of its banking loans.

But he confirmed that the group was talking to a number of third parties as part of an ongoing financial process.

A statement said: "The group is engaged with a number of third parties as part of this process and has no further comment on the specifics of the refinancing. “Whilst acknowledging it is a challenging market, the XL Leisure Group is experiencing strong trading with bookings for 2009 already outperforming last year.

"In addition, XL Airways has been the highest-performing airline at Gatwick and Manchester on punctuality during the month of July. With the addition of new aircraft this year XL will also be operating the youngest fleet of short haul aircraft in the UK."

One industry insider close to XL was quoted in today’s Daily Telegraph as saying the situation was “retrievable”, adding that the “consensus is that there is light at the end of the tunnel” for XL.

1st September 2008, 18:53	#1 (permalink)
Delderek Super Tenerifian Join Date: Sep 2006 Location: Kent/Los Cristianos Gender: Posts: 1,600	Flights have been grounded as XL Airways has gone into administration. Popular airline to Tenerife appears to be in trouble Leisure Group focus of refinancing speculation XL Leisure Group is at the centre of speculation over refinancing plans. Weekend newspaper reports claimed that the UK’s third largest tour operating group was in urgent refinancing negotiations. Financing associated with fuel hedging positions is understood to be at the centre of discussions. A spokesman for XL, which includes XL Airways and operator brands such as Kosmar Holidays, Aspire, Travel City Direct and Freedom Flights, reportedly said it was not close to breaching the terms of its banking loans. But he confirmed that the group was talking to a number of third parties as part of an ongoing financial process. A statement said: "The group is engaged with a number of third parties as part of this process and has no further comment on the specifics of the refinancing. “Whilst acknowledging it is a challenging market, the XL Leisure Group is experiencing strong trading with bookings for 2009 already outperforming last year. "In addition, XL Airways has been the highest-performing airline at Gatwick and Manchester on punctuality during the month of July. With the addition of new aircraft this year XL will also be operating the youngest fleet of short haul aircraft in the UK." One industry insider close to XL was quoted in today’s Daily Telegraph as saying the situation was “retrievable”, adding that the “consensus is that there is light at the end of the tunnel” for XL.