The collapse of My Travel Group Plc shares on the London Stock Exchange last week on the face it does not affect those involved with business travel, either as a customer or provider. However those with longer memories will recall the disintegration of the Clarksons holiday empire, together with its associated airline Court Line, in 1974 and the repercussions. The current ATOL scheme, only for passengers contracted on package holidays, is one of the benefits of that fiasco. However those booked with MyTravelLite, the company”s new budget airline (see below), are not covered by the format, in common with all scheduled airline passengers.
Just to put the situation in perspective the MyTravel Group charter operation currently operates around 25 aircraft including Airbus A320 series, Airbus A330 and Boeing 757. From 1996 until 2001 a substantial shareholder was the US holiday giant Carnival, owner of Cunard.
MyTravel Group shares stood at 18p on Friday”s close, as opposed to 544p three years ago. At the time the company, then called Airtours, was bidding for First Choice (who many will remember as Owners Abroad), which continues today as an independent PLC with Air 2000 as its in-house airline. Speculation continues regarding a reversal of roles. A 50-strong combined airline would be a powerful competitor in the rapidly merging budget travel market. Adding to MyTravel”s woes is a statement from TUI that it had taken MyTravel off its Lunn Poly racks. However keeping a competitor out of sight is an old travel business trick but it does not help consumer confidence. Talk of accountancy malpractices continues. David Crossland, founder of MyTravel, intends to retire in November. He needs to make sure that his memorial to a lifetime in the travel industry is a solid business with a strong future.