The operator of XL airlines, XL Leisure Group, which is the UK's third largest holiday group, has gone into administration.
XL, which flies to 50 destinations predominantly in the Mediterranean, has rendered up to 85,000 Britons stranded abroad as all its flights have been cancelled and its aircraft grounded.
It is expected that Kroll, the insolvency specialist, will be appointed to handle the administration.
The Civil Aviation Authority (CAA) are currently making arrangements to bring the stranded holiday makers home on substitute planes. The 200,000 customers who have made advance bookings with the company can expect refunds. However, the minority of customers who booked directly with the airline or XL.com will have to pay a fee.
The group is among numerous travel operators who have experienced financial difficulties, as the industry struggles with a weakening in consumer confidence, high fuel prices and an economic downturn.
The travel operator was purchased from Icelandic transportation company Eimskipafelag Islands (Eimskip) in a management buyout at the end of 2006. XL made an operating loss of £24m in the 12 months to October last year.
XL sells holidays under brands including XL Airways UK and Medlife Hotels.
