Barclays Bank Closed Down XL

BYALPHAINDIA

I have just been reading a thread about an interview with the 'Ex XL boss Phil Wyatt.

The interview with Lucy Huxley from a Travel Magazine revealed that XL's bankers Barclays pulled the PLUG on XL overnight.

Phil Wyatt had made arrangements with 2 Icelandic Banks for additional funding to try and save the business, Which their current bankers Barclays had not offered, And was on Holiday in Crete with his family.

When Mr Wyatt flew back to join his family Holiday after having to return for meetings with his directors, He was informed that Barclays was nervous about XL's account - And closed XL down without any form of negotiation from XL's directors whatsoever.:rolleyes:

This was the final nail in the coffin for Travel City Direct & the XL Group, XL Airways, And other subsidaries.

I can remember the look on Mr Wyatt's face at that press interview, Sheer Horror at the collapse of the company he had ran for 15 years, And his genuine remorse at the loss of his loyal staff.

Mr Wyatt had not just run the company as a business, But had an interest in the Travel & Aviatin business, Along with his brother Jim Wyatt who know runs Meridian Aviation & the hopeful upcoming new Airline KISS AIR.

Phil Wyatt has sadly no intention of ever running a company or been involved again, After this experience.

My questions are why did Barclays not offer SOME form of HELP?

And why did they feel that just because their customer of 15 years 'Poor Old XL' went to another bank for help - It gave them the excuse to pull the PLUG?:rolleyes:

It's all coming out in the wash now, I will try and post the full link to the interview, I am not a 'Total' computer expert, So I will try my best.

So to all the pax who were left stranded by XL at home & abroad, XL were not to blame for the sudden suspension of flights.

It was their 'So Called' bankers - Peter Varley & his merry men at big bad Barclays.:mad:

So remember that the next time you walk down the High St, And think - What timewasters they all are.

The Banks WIN everytime.:rolleyes:

BYALPHAINDIA

Point taken, XL was ran well, But the company needed SOME more help from It's 'So Called' friend - Barclays.

The help was not there, So the company had no choice but to suspend their operations at the last minute.

The directors tried their hardest up until 23.00 the night before to save the business, But it was not to be.

The CAA was assisting, But it was getting concerned about the Airline's operations in accordance of it's AOC 'Air Operators Certificate.

The CAA were prepared to wait, But Barclays not.

The company had to take bookings up until the last minute, In a way to try and save the business, It was the LEAST it could do.

All Mr Wyatt needed was a phone call from Barclays before 23.00 and the company would have been saved.

But He had no other alternative at that given time.

BYALPHAINDIA

Obviously I don't know the FULL story of events here,

But I am led to believe from various sources, That XL approached Barclays many months before for help, That Barclays had no intention of offering.

Barclays just kept on promising EXTRA funding that never came.

True, nobody should put more money into a business that is failing, But XL was making profit, And the profit it was making was going out the next day to run the business.

The money was going out faster than it was coming in.

And I agree that is not good business, But sometimes we need SOME form of help, Nobody is 100% financially well off, Even the Banks themsesves.Lol

All Barclays had to do, Was provide additional funding, Money that it would have got back anyway, With interest obviously more payback on the loan.

I stand by my gun, And say XL would have stayed in business, Barclays would have not been affected by lending an amount to XL.

Everyone Happy - Jobdone.

BYALPHAINDIA

I agree with what you are saying, But it's like playing a Rugby match you paly on till the last minute.

XL were prepared to fight to save their company & their jobs, Even thou their Chairman Peter Owen (Owing) left without any grace.

Mr Wyatt was left to run the falling company without choice.

Like I have said, They genuinly tried to save their business.

Play to 90 minutes not 60.

Regards.

BYALPHAINDIA

No I wish! - Just a 757 Driver.

BYALPHAINDIA

Pilot.

Best Regards.

fifeken

What a one sided story you have read and (it looks like) taken in. At the time it was reasonably well publicised that XL were going down the tubes and had been desperately trying to raise funds from many sources. I hope my bank employs ldavies rather than byalphaindia if they've got a vacancy, as my money will be in safer hands.

Edinburghlass_2

BYALPHAINDIA wrote: »

Pilot.

Best Regards.

:rotfl::rotfl:

From meter reader to charity shop worker to underwriter to pilot, you do make me smile but then there is no financial crisis is there

http://forums.moneysavingexpert.com/showthread.html?t=1212107

I'm guessing as an underwriter you would have happily ok'd XL :rotfl:

Mark7799

BYALPHAINDIA wrote: »

I agree with what you are saying, But it's like playing a Rugby match you paly on till the last minute.

XL were prepared to fight to save their company & their jobs, Even thou their Chairman Peter Owen (Owing) left without any grace.

Mr Wyatt was left to run the falling company without choice.

Like I have said, They genuinly tried to save their business.

Play to 90 minutes not 60.

Regards.

Rugby matches are played over 80 minutes

deegee999

Thry would'nt have survived long goig from barclays to the icelanders, barclaysare the most customer unfriendly bank in the uk big or small they don't care. to deep in international fiddles.

scubaangel

BYALPHAINDIA wrote: »

Obviously I don't know the FULL story of events here,

But I am led to believe from various sources, That XL approached Barclays many months before for help, That Barclays had no intention of offering.

Barclays just kept on promising EXTRA funding that never came.

True, nobody should put more money into a business that is failing, But XL was making profit, And the profit it was making was going out the next day to run the business.

The money was going out faster than it was coming in.

And I agree that is not good business, But sometimes we need SOME form of help, Nobody is 100% financially well off, Even the Banks themsesves.Lol

All Barclays had to do, Was provide additional funding, Money that it would have got back anyway, With interest obviously more payback on the loan.

I stand by my gun, And say XL would have stayed in business, Barclays would have not been affected by lending an amount to XL.

Everyone Happy - Jobdone.

Why should a bank which is suffering from the financial crisis itself bail out a business which is plainly losing money?

Prehaps you dont understand what profit means, my understanding of it is that a business' profits are the monies left over after paying day to day running costs - so 'profits' cannot be the money coming in then going out to pay for the running, thats known as its turn over, in this case the turn over was not enough to sustain day to day costs, this putting the company in debt -as you have mentioned yourself!

Sadly for XL and their customers the risk to Barclays of lending the company more money to prop it up was greater than the potential pay off if (and thats a big if) XL turned itself around. I have to wonder what the chief bloke was doing off on holiday if he knew his company was in such huge difficulties, and more over why his company hadnt done what most companies do when losing money hand over fist, increase prices to a sustainable level - its not as though the routes they flew were unpopular ones, and if they were any sensible business would have dropped the routes which consistantly made a loss to allow those which did not (ie profit making routes) to sustain the business.

In this case XL did not, thus folded, bad management and horrendous planning all round sadly for all those innocent travellers caught up in the problems, IMHO the people who ran this business should not be allowed to reenter the travel market as the risk of them doing it all again must be huge, it is a shame but the days of cheap flights are over and we have to accept that once again we need to save up for our holidays and not rely on credit and low cost carriers to take us to our exotic destinations.

I was affected by the collapse of XL in that I had a trip to Egypt booked for a week or so after the airline folded but my travel company couldnt get flights to fit their boats itneraries, so cancelled and refunded my trip - to my credit card, so when I rebooked for next summer I've chosen to save up to pay for it and rather than putting on credit. A hard lesson to learn but one we need to relearn and fast.

*I have no real knowledge of how business works so may have used the wrong terms etc.