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XL Holiday and credit card chargeback ?

Hi , A friend of mine booked to go to Sharm-El-Sheikh with XL but obviously has lost the holiday now they have gone bust . Her friend , who she was going with , paid for the holiday with their credit card . They have rung their CC and asked to do a chargeback but have been told they will only refund them the flight monies as the hotel can still provide them with the service they paid for but I thought that's not right as the hotel can't as they can't get flights now this late notice . Does anyone know how they stand on this please ? Thanks
Baby Thomas born 3 months early by emergency section on 21/1/09 weighing 1lb 15ozs .
Thomas came home after 3 months and 2 days in hospital weighing 5lb 15ozs
Thomas weighed 21lb 4ozs on his 1st birthday , a total weight gain of 18lbs 5ozs !
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