MercoPress. South Atlantic News Agency

Falklands/UK air bridge goes bust and all flights are cancelled

Globspan will not impact on services to the Falklands. The charter is arranged through a broker and the broker has immediately set up arrangement with another company.

Scotland's biggest airline, Edinburgh-based Flyglobespan and also responsible for the UK Ministry of Defence air link with the Falkland Islands was placed Wednesday in administration with all scheduled flights cancelled.

Administrators PricewaterhouseCoopers said Globespan was in contact with about 5,000 passengers booked with or travelling with the airline.

Last year the airline, which employs about 800 staff, carried more than 1.5 million passengers and operated 12,000 flights. The majority of the company's staff has been made redundant.

In October 2008 Flyglobespan was awarded an MoD contract to fly four times per fortnight Brize Norton/MPA Falkland Islands using a Boeing 767. The two-year contract with two one-year options was expected to run until 2012. The air bridge left Brize Norton on Wednesdays and Sundays, and Mount Pleasant northbound on Fridays and Tuesdays. The British forces airbridge is the Islanders only alternative to flying with Lan via South America and was not cheap: 2.600 USD for a return flight, while tourists pay 4132.48 USD or if they book less than 28 days in advance, it will cost them 6666.02 USD. Fares were expected to further increase any moment.

An MoD spokeswoman said: “We are aware that Flyglobespan has gone into administration and we are currently assessing the wider impact on MoD business.”

A spokesman for Glasgow Airport said: “We are doing everything in our power to help passengers rearrange their travel plans, wherever possible, and to secure additional capacity from other airlines serving Glasgow.

The vast majority of destinations served by Flyglobespan are already served by other carriers, a number of whom have already stepped in to offer support to Flyglobespan's customers.”

The move followed attempts to conclude a financing deal for the airline with Jersey-based Halcyon Investments which broke down earlier on Wednesday.

In a statement Wednesday night, the administrators said the Civil Aviation Authority (CAA) would be responsible for the repatriation of about 1,100 people who are on holidays booked as part of a Globespan package holiday.

However, a further 3,400 people are overseas and are not protected, who booked directly through flyglobespan.com.

Customers who booked Flyglobespan flights directly via the Flyglobespan website or the call centre would not get a refund on the cost of their flight but the Department of Transport said they may qualify for a reduced rate repatriation fare.

Transport minister Paul Clark said: ”I spoke earlier this evening with a representative of the European Low Fares Airlines Association, who confirmed that several of their members will provide special fares.

The British Civil Aviation Authority in an official release to customers and passenger said that it regretted to inform that “the tour operator Globespan Group PLC has ceased trading. Globespan Group PLC includes Globespan (tour operator) and Flyglobespan (airline).

“The company you have booked with, either Globespan (tour operator) or Flyglobespan (the airline), will determine whether your booking is protected by the ATOL scheme.

“The ATOL scheme is designed to protect bookings made with an ATOL tour operator. Customers booked with the tour operator Globespan are protected”.

Managing director, Gordon Dewar said: “This is a sad day for the Scottish aviation industry. However, our immediate attention must turn to the thousands of passengers who were due to fly with the airline over the coming months.

”We are already holding urgent discussions with a number of other airlines and are hopeful of replacing much of the capacity that has been lost from Flyglobespan going into administration.“

A Scottish government spokesman said: ”This is extremely disappointing news. The Scottish government is contacting the company as a matter of urgency to seek clarification on the situation.

The Secretary of State for Scotland Jim Murphy said: “The news that Flyglobespan has gone into administration is a real blow for Scotland and first and foremost for the hundreds of employees who now face redundancy a week before Christmas.

”Our other immediate priority must be to help the thousands of people who booked and flew with the airline and are now effectively stranded abroad.

“My officials and I have been in touch with the Department for Transport as this issue unfolded and will continue to work with them to see what can be done to help those caught in the middle of this unfortunate situation.”

Earlier this year, Flyglobespan announced it had made an operating profit of £1.2m following a loss of £19m the previous year.

Set up in 2002, the company operates from five UK airports, including Prestwick, Edinburgh and Aberdeen. Earlier this year, it pulled its services out of the Durham Tees Valley airport, blaming the worsening economic climate.

Latest reliable news is that failure of Globspan will not impact the link between Brize Norton and Mount Pleasant airport according the Falkland Islands Government website.

“Regarding the news that Flyglobespan - the Edinburgh based airline company who provide the aircraft for the Airbridge to Ascension and the Falkland Islands - are going into liquidation, the Falkland Islands Government has been informed by the Ministry of Defence that Flyglobespan is a sub-contractor to the MoD’s main contractor that operates Airbridge. The main contractor is committed to operating the Airbridge and will be making suitable alternative arrangements, as necessary. It is presently reported that there is no disruption to the service.

In the event that difficulties do arise, the MoD’s main contractor will enact contingency plans to find other suitable aircraft. FIG is being kept up to date with news and if there is any change to the current schedule, passengers will be informed.”