Call for probe into collapse of Flyglobespan

City A.M. Reporter
SCOTTISH finance secretary John Swinney has called for an investigation into the failure of collapsed airline Flyglobespan.

The Edinburgh-based business went into administration on Wednesday leaving thousands of passengers stranded and 550 staff facing redundancy a week before Christmas.

Swinney said that a probe into the failure should look at the role of credit card handling company E-Clear, which failed to pass on £35m to the airline.

He has written to transport secretary Lord Adonis demanding that passengers who purchased flights only be covered by insurance policies which protected Globespan package holidaymakers who received refunds and return flights under an Air Travel Organisers’ Licensing scheme.