E-Clear 'should be investigated in connection with Flyglobespan collapse'

Date: 21/12/2009

The role of the company E-Clear in the collapse of airline Flyglobespan should be investigated immediately, according to Scotland's finance secretary John Swinney.

E-Clear handled credit card transactions for the airline, as well as for the Allbury Travel Group which collapsed at the weekend.

According to Mr Swinney, E-Clear failed to pass on £35 million to Flyglobespan, a sum that could have allowed to airline to stay in business.

The finance secretary is also appealing to transport secretary Lord Adonis to allow flight-only passengers to be covered by a travel protection scheme.

"The sheer number of travellers involved in non-protected travel arrangements in the Globespan collapse means that this requires to be addressed as a matter of urgency," he said.

Flyglobespan went into administration on Wednesday (December 16th), leaving 4,500 passengers stranded abroad.

Of these, 1,100 on package holidays were covered by the Air Travel Organisers' Licensing scheme, which guarantees travellers return flights and refunds should an airline go into administration.

The Allbury Travel Group owns travel firms Libra Holidays, Argo Holidays and Jetlife. It collapsed at the weekend, leaving 100 passengers stranded abroad.