Majority of Globespan staff lose jobs

The majority of Globespan’s 800 staff are to be made redundant, administrators confirmed.

The administrators confirmed that a small number will be retained to help wind down the company and the details of this are being finalised.

The Globespan group is in contact with approximately 5,000 passengers who are expecting to travel to and from foreign destinations during the coming few days. They are being advised to contact a helpline to receive updated advice.

The call centre numbers are:

0871 271 9000 for UK calls
+44 141 332 3233 for those calling from Europe.

Bruce Cartwright, joint administrator and head of business recovery services at PricewaterhouseCoopers LLP in Scotland, said: “Despite difficult trading conditions, the company has successfully implemented a number of steps to refine operations and focus on core profitable business.

“Unfortunately a lack of confidence in the sector following the demise of other airlines resulted in a reduction of liquidity to fund the ongoing operations.

“The directors have sought to overcome this lack of liquidity by seeking additional funding from a third party in recent weeks but this has ultimately been unsuccessful. The directors have therefore concluded with regret that the business can no longer continue to operate.

“Unfortunately I am obliged to confirm that, the group will not longer be able to operate flights. Our focus right now is on assisting those passengers who need to complete return journeys and communicating with those who have future reservations.

“We would strongly advise those passengers who had expected to travel tomorrow to remain at home or make alternative arrangements as there is no prospect of their planned flight taking place.”

Cartwright, Graham Frost and Ian Oakley-Smith at PwC were appointed as joint administrators to Scottish travel firm.

Cartwright added: “We are acutely aware of the distress this situation will cause those travellers who are currently abroad, as well as the impact on those holiday makers who have booked travel for later this year or 2010.

“Over the coming days we will be focusing our efforts on ensuring Globespan customers have all the information they require to both return home or to determine the next steps in terms of whether or not they can secure refunds.”

Globespan routes:

Winter schedule
Glasgow Faro; Alicante; Gran Canaria; Lanzarote; Malaga; Paphos; Tenerife; Palma; and Egypt (Sharm el Sheikh and Hurghada)

Edinburgh Faro; Alicante; Gran Canaria; Lanzarote; Malaga; Paphos; Tenerife; Madeira; and Egypt (Sharm el Sheikh only)
AberdeenTenerife

Summer schedule (1 May – 31 October)

In addition to the above routes Globespan also flies to Orlando from Glasgow, Edinburgh, Cardiff and Belfast and operates package holidays in Canada and Turkey.