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'Fairly bleak winter', warns Palmair MD

8:52am Friday 12th September 2008

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MORE companies could go the way of XL Leisure, the managing director of Palmair has warned.

David Skillicorn spoke to the Echo after the third largest package holiday company in Britain went into administration and grounded all flights, stranding thousands of British holidaymakers already abroad.

Mr Skillicorn said the price of aviation fuel has gone through the roof. While fuel supplements helped with the costs several months later, it did not solve the problem immediately.

He said: "Our industry is an incredibly optimistic loud voice in terms of confidence and selling teams but it does rely on an ever-increasing number of people coming through our doors and paying a realistic price for the product."I am afraid in the industry today there is a massive amount of over capacity.

"£10 notes are being sold for £8. When you get a bit of a downturn it's all over.

"This is not going to be the end of the story. There are a considerable number of companies that are in dire straits.

"We are coming out of the summer going into the winter and for many in the industry it looks like a fairly bleak winter."

He said it was unusual for a company to collapse in September, as October was when a lot of overseas bills had to be paid.

His firm has yet to be asked for help from stranded passengers but he said they would look sympathetically at any requests made to their staff.

There are a number of steps consumers can take to safeguard their money.

Book through an ABTA travel agent, book a package holiday through an operator that holds at ATOL licence, and book on a credit rather than a debit card.

Mr Skillicorn said passengers who had booked through companies that held at ATOL licences would be protected and get their money back or be brought home probably on the day they expected, and their holiday accommodation bill settled if it was a package deal.

"Anyone else, they are on their own," Mr Skillicorn warned.


Your Say YourThisisdorset

John, Poole says...
10:31am Fri 12 Sep 08

Chin up, David.In a few years time, you may get a statue of yourself in Bournemouth, sponsored by the Council and the Echo!

Christopher, Wallisdown & Winton West says...
11:31am Fri 12 Sep 08

A typical stupid comment with nothing related to the story in question.

It is companies like Palmair who over years of experience, keeping fleets to what is required, ensuring first class treatment to passengers that has kept this company in the air. At the same time they can make an offer, if needed to help those who are stranded abroad.

As I have said in another thread, some companies are using this for their gain already. So offers from other companies if needed will be a godsend to those who are stranded, at the end of their holiday, and short on the cash after the same.

A reminder, it is OK booking independent holidays if you want to, but do make sure they are ATOL protected. Some are not. Or you use your Credit Card to ensure you have the correct insurance. Normal Travel insurance will not help.


Bizzybody, Poole says...
1:37pm Fri 12 Sep 08

If all the airlines go bust then the world will be saved from global warming or is it the Govt raising money by taxing airfares (to save the world of corse) that is leading to these companies going bust.

Bizzybody, Poole says...
1:41pm Fri 12 Sep 08

If all the airlines go bust then the world will be saved from global warming or is it the Govt raising money by taxing airfares (to save the world of corse) that is leading to these companies going bust.

norbitonpaul, says...
2:02pm Fri 12 Sep 08

Bizzybody wrote:
If all the airlines go bust then the world will be saved from global warming or is it the Govt raising money by taxing airfares (to save the world of corse) that is leading to these companies going bust.
There is no evidence that aircraft activities are detrimental to the environment.
The green industry and spineless governments have concocted an anti-flying campaign that has no foundation in scientific fact.

John, Poole says...
2:02pm Fri 12 Sep 08

"£10 notes are being sold for £8. When you get a bit of a downturn it's all over.


I wonder who has been greasing your Palm, Christopher?!

Christopher, Wallisdown & Winton West says...
2:52pm Fri 12 Sep 08

No one John, no one. What has the quote got to do with me. We all know that the pound is devalued, or I thought we did. I was not referring to the story but your unfounded comment.

Bizzybody, you should find out the details and facts first before making claims as such. The European Aviation Industry are responsible for 4% of carbon emissions into our atmosphere. More emissions are produced from Cars, Cows passing their daily dose of methane. Such emissions rise upwards, thus aircraft travelling at 35000ft, do not represent large amounts of Co2 in our air.


Bizzybody, Poole says...
2:55pm Fri 12 Sep 08

Sorry Christppher I was trying to be sarcastic. I agree - and boats create more CO2 than planes - is there a tax on cruises? No so why not ?

Christopher, Wallisdown & Winton West says...
3:44pm Fri 12 Sep 08

My apologies Bizzybody,
I would imagine there is a tax somewhere in the cost of a ticket on cruises, what hasn't.

It is a sad day for the air world.


Simonh Crane, Bournemouth says...
4:41pm Fri 12 Sep 08

can i buy some of those £10 notes please!

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