XL Airways grounds aircraft after filing for insolvency

Britain’s third largest tour operator faced bankruptcy as a result of soaring fuel costs and the credit crunch. XL Leisure Group Plc, XL Airways UK Limited, Excel Aviation Limited, Explorer House Limited, Aspire Holidays Limited, Freedom Flights Limited, Freedom Flights (Aviation) Limited, The Really Great Holiday Company plc, Medlife Hotels Limited, Travel City Flights Limited, Kosmar Villa Holidays plc all went in administration. A spokesperson said that the companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding. The joint administrators cannot continue trading the business and therefore all flights operated by the cmpanies have been immediately cancelled and the aircraft grounded. Going forward, the joint administrators are unlikely to be able to trade the business or operate the aircraft.