Kiss Flights’ parent Flight Options has ceased trading.
The CAA estimates that around 13,000 people are currently overseas and a further 60,000 people have forward bookings.
London-based Flight Options, a sports tour operator and dynamic packager, issued the following statement:
"In 2010, the companies suffered major setbacks due to very difficult and challenging conditions in the UK travel market resulting in poor yields and poor demand.
"The poor yields were mainly contributed to over capacity in the marketplace. Poor demand was attributed to volcanic ash, which not only closed the skies for seven days, but affected people’s confidence for well over six weeks, good weather in the UK, industrial actions and financial issues in Greece, bad ATC problems across Europe. The demise of Goldtrail Holidays was devastating.
"All of the above have resulted in poor yields, very late booking trends (resulting in slow forward sales in September and October) which have resulted in severe cash flow issues."
Flight Options CEO Gary Ash added: "I am absolutely devastated by this unfortunate turn of events. Over the past nine months we have been fighting in a very difficult travel market. However, recent developments have made it impossible to continue the operation of the companies.
"The effect of the volcanic ash was devastating. When the banks were in trouble the government bailed them out, but when the tour operators had to cope with the enforced closure of the skies and the expensive cost of repatriation the government did not help.
"The demise of Goldtrail has cost us dearly as we have had to assume responsibility for a large number of unsold seats. On top of poor yields and very late booking trends, our fate was sealed by very poor forward sales."
The statement said for the year ended October 31 2009, Kiss Flights reported an operating profit of £500,000.
Seat-only operator Kiss Flights, run by former directors of collapsed XL Leisure Group-owned Freedom Flights, was purchased by Flight Options in January 2009.
The failure comes after the collapse of Goldtrail and Sun4U this summer.
Swedish charter airline operator Viking Airlines AB immediately issued its own statement, assuring customers of its financial situation.
“While one of Viking’s tour operating customers, Flight Options, has unfortunately gone into administration, Viking is financially healthy and is set to continue its normal UK operations,” it said.
“The company has already put into motion plans to downsize its fleet, immediately reducing the number of aircraft by three.
"Regrettably, this will result in some job losses, mainly in the UK. It should be noted that the majority of Viking’s operations are based in Central and Eastern Europe and in the Middle East.”
By Bev Fearis
