Budget Travel to close this evening

ibarelycare

Budget Travel to cease trading this evening
25/11/2009 - 14:44:23

Ireland’s largest tour operator Budget Travel will cease trading from this evening with the loss of 172 jobs and the closure of the company’s 17 retail shops, it has been announced.

The firm applied to the High Court to have the company placed into provisional liquidation and for the appointment of Simon Coyle of Mazars as provisional liquidator this afternoon.

Senior executives of the company and the liquidator will meet with the Commission for Aviation Regulation this evening with a view to making arrangements to cater for holidaymakers who are currently abroad and for holidaymakers who had been scheduled to depart in the coming days and weeks.

The company says that it has already drawn up contingency plans and will work constructively with the Commission to minimise the disruption caused to holidaymakers.

The company currently has a bond of €11.4m in cash lodged with the Commission which will be used to assist holidaymakers abroad and refund any deposits or bookings made with the company which can not now be honoured.

The management of that process and the payment of refunds etc is at the discretion and control of the Commission which will have the total assistance of the liquidator in the processing of claims.

A helpline (01-6613122) has been established at Budget Travel to deal with queries from customers .

Budget Travel managing director Eileen O’Sullivan today expressed her deep regret and sadness at the decision to place the company into provisional liquidation.

"This has been a painful and distressing time for us all and we deeply regret that this situation has arisen," she said.

"We particularly regret the impact of the decision on our loyal customers and on our colleagues across the company many of whom have worked with us for decades. We will do everything we can to minimise the impact of this decision especially on those who are currently travelling with us."

Ms. O’Sullivan said that the dispute with the Commission for Aviation Regulation regarding the granting of licences for the coming year had brought financial challenges to a head.

"The travel industry in Ireland is facing massive pressure from a sharp and sudden collapse in demand this year," said O’Sullivan.

"We understand that the Commission has a job to do but we sincerely believe that had our licences been renewed as expected we would have been able to apply to the courts for protection under the Examinership procedures during which we could have restructured our business to take account of the market collapse.

"Not only that but we would have benefitted from the fact that the bond necessary to secure the licences going forward would have been approximately 40% smaller than the €11.4m bond currently with the Commission.

"The difference refunded to the company would have helped it to tackle its financial challenges."

Budget Travel began a restructuring process in August of this year when it announced the closure of 14 of its retail outlets and the loss of approximately 95 jobs.

While that addressed some of the financial challenges the company was facing, it has not been sufficient to prevent the financial challenge escalating, the company has stated.

Will have to book with someone else for next year's knacker holiday

Lux23

Its sad as they employ quite a few people, I don't understand why anyone still goes to travel agencies so its no surprise to me.

mathie

If only they'd stuck to their own budget.

arybvtcw0eolkf

What'll the traaavelers do now!.

/Oh, differ thread!.

:P

InKonspikuou2

Spain and Greece are delighted.

shqipshume

Thats a shame feel bad for those who are losing their jobs,
On another note at least they can take their holidays now

Leixlip_Red

Thought it was gas when I read on the RTE website that there are exactly 747 people on holiday abroad with them now.

http://www.rte.ie/news/2009/1125/budgettravel.html

Biggins

Doubly sad to hear. One because they will only be out of work and find it tough to get back into it given the economic mess and two, the time of year that it is.
Deepest sympathies to all those effected by this course of events.

TheZohanS

Alisha Freezing Shrubbery wrote: »

What'll the traaavelers do now!.

/Oh, differ thread!.

:P

Killiney.

allanb49

Sorry for the people to lose their jobs but budget travel was such a ripoff, great savings on our website €5 web discount stupid prices that would cost you 1/3 of the price if you booked it yourself, good riddance to a sorry by product of our greedy era.

genericguy

oh dear, what a pity, never mind.

super_furry

Sad for the people that lost their jobs, but travel agents are kind of obsolete now with everyone making their own arangements via the internet these days.

davyjose

Damn Internet!!! When will people learn?

SaW PR

Sorry to hear this in relation to both people who booked holidays with Budget and those who work for and with them.

Having clients who tend to edge down the more online sales route, I do have to say, it was a doomed medium, unfortunately only luxury holiday travel agents are expanding these days. Probably a case of too little too late. If you want to sell cheap holidays, you have to do it online, cutting out the middle man like lastminute.com or ebookers

Again, I wish all the staff and suppliers the best, and sincerly hope you find work soon.

All holiday makers will most likely eventually get a refund from the ITAA fund, but that may take a while.

Kind Regards
Saw