Holiday makers hoping to jet off from Scotland to warmer climes this winter were dealt a blow as the Globespan Group ceased trading.

Globespan Group PLC includes Globespan (which is a tour operator) and Flyglobespan (formerly Scotland’s largest airline).  The legal position regarding refunds depends on who you booked with.

The Civil Aviation Authority’s ATOL scheme is designed to protect bookings made through ATOL registered tour operators.  ATOL stands for Air Travel Organisers’ Licensing, but the scheme does not cover those who made their bookings directly with  an airline.

Therefore, any would be holiday makers who booked with the tour operator Globespan are protected by ATOL. However, any one who bought tickets directly from Flyglobespan are not ATOL protected.

It is estimated that over 3,000 holidaymakers were left stranded in Spain, Portugal, Cyprus and Egypt when the company went into administration last week.

This has provoked an urgent response from the Scottish Government who have called upon Lord Adonis, the UK Transport Secretary, to take action so that flight-only passengers can also be covered.

John Swinney MSP, the Finance Secretary, accepted that there would be “complexities” in extending the ATOL scheme to flight-only travellers but pointed to the high numbers of travellers involved in non-protected travel arrangements as a reason for taking swift action.

The UK Government is currently consulting on this issue. Mr. Swinney’s view is that the scheme’s extension should be funded, as with the existing remit, through the industry itself.

Changes to the scheme may be on the horizon, then, but that will be of little comfort to those caught up in Globespan’s demise.

Tags: compensation claims, legal services