Delderek

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.

jogger321

From a personal point of view I used them up to about a year ago a couple of times a year for flights only and had no problems with them at all , however their pricing policy seemed to change and they were getting expensive and uncompetitive for flights.. I got Better prices off BA and the next flights booked are with EasyJet coz its cheap but i'm not looking forward to the "Boarding Experience"

Licinius

Thats easy, just sit in the bar til everybody else has borded then get on last

TheRockDoc

Flew with XL once and never, ever again. Cramped seating - I was the third person to check in and when I asked if it was possible to have a seat with extra legroom as I am almost 1.83 m tall, I was informed that the emergency exit seats were al booked. Indeed they were with brats contrary to CAA and IATA regulations. When I asked a dolly with a trolley why her reply - they are children of company officials! God help passengers if there had been an incident as the little darlings didn't know what to do and thought the safety breifing a giggle. Before you ask, yes I do know what to do I used to fly many years ago for the best airline in the world - No not BA this one goes anytime to anywhere in the world and you can recognise their fleet usually green and grey with a BIG red and blue flash on the tail fin. I was aircrew in the Royal Air Force.

jogger321

Flew with them three times and had no complaints whatsoever and they were doing highly competitive flights until around a year ago

If they go to the wall it will be one less airline flying to Tenerife

redmist

XL have gone to the wall. pity I use them all the time to visit my paradise. Thankfully I am on TC airlines for my next visit on 3rd oct.

obs

Yup, announced this morning.

Britain’s third largest tour operator has gone into administration and grounded all flights — leaving more than 40,000 holidaymakers currently abroad stranded.

And God only knows how many more that have booked their holidays in advance, even into next year. It does not make good reading.

Who's next?????

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TheWhites

I guess the best advice at the moment is to make sure you book through an agent protected by ATOL.

At least you are getting your money back then!

Fortunately we have booked our flights with monarch, through last minute.

You have got to feel for the thousands stranded here or abroad.

jwramsay

I've used them loads, were a great firm. Always booked via website too, which is dangerous as you ain't ATOL protected.

Feel for all those stranded abroad.

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doreen

2,000 out of work, 85,000 affected ... and two flights from Gatwick to Tenerife South still showing as due today on aena.es website