The British government is asked to investigate the collapse of the Edinburgh-based airline Flyglobespan. The claim of Scotland’s first minister Alex Salmond came after the failure of a Hertfordshire-based holiday company Allbury Travel Group, which has close links to E-Clear, the card payments group accused of hastening the collapse of Flyglobespan.
Allbury Travel Group, which is controlled by the British Virgin Islands company Allbury Ltd., and trades as Libra Holidays, Argo Holidays and Jetlife, went into administration in the end of last week. Elias Elia, chief executive of E-Clear, is named as the person controlling BVI-registered Allbury Ltd. He is also in the group of investors behind Jersey-based Halcyon Investments which had been negotiating to invest in Flyglobespan’s parent company Globespan. When it became clear that investment was not forthcoming, Flyglobespan ‘s directors called in the administrators.
According to Scotland’s finance secretary John Swinney, £20m out of £35m collected by E-Clear on behalf of the airline should have been in Globespan’s bank account. He told that the Scotland’s airline would have had “a better chance of survival” if the money had been passed on. A spokesman for E-Clear denied the group’s responsibility for the collapse of the airline. Mr. Salmond said that there was a case for a serious investigation by UK government regulators, who should look at “the negotiations and the financial structure of Globespan.”
Allbury Travel Group operated air package holidays and flights out of Gatwick, Manchester, Newcastle, Birmingham and Leeds airports to Greece, Cyprus and Egypt. Now the Civil Aviation Authority is making arrangements for company’s customers which are now abroad to complete their holidays and return home, and to provide refund for forward bookings under its Air Travel Organisers’ Licensing scheme.