Budget airline looks set to collapse

The Scottish low-cost carrier known as Globespan may fall foul at the last hurdle as E-Clear’s rescue package is still waiting to be cleared by regulators. Globespan is in grave danger of following in the footsteps of XL as bankruptcy looms over the company that specialises in budget travel for Scottish-based package holidays. It may be rescued by E-Clear but the knight in shining armour deal has yet to be approved by regulators heaping more pressure on the financially dwindling company.

It has been reported that the company should have called in the administrators four weeks ago but it somehow managed to keep going after they made an announcement claiming they had secured financial backing that allowed them to carry on. The airline is Scotland’s leading airline and if the deal is held up for much longer the company will cease to exist. However, Globespan insisted yesterday that they are simply waiting for approval from regulators and the financial rescue will be complete.

Somewhat ironically, the owner and chairman of Globespan Tom Dalrymple was named as one of the wealthiest men in Scotland and he spoke of his excitement at the prospect of the new investment. Until the regulators approve the deal, the company will be waiting with baited breath and the financial uncertainty will be a major concern. The company currently employs 600 staff and many customers will also be concerned at what happens over the next few days. If the company does go bust then customers who booked package holidays will be reimbursed by ATOL.