Flyglobespan

In May 2005 the first domestic services were launched, with twice-daily flights from Glasgow and Edinburgh to London Stansted - routes that were already operated by the much larger low fares carrier easyJet, with much higher frequencies. However, these services were withdrawn in February 2006, together with plans to serve Bournemouth from Edinburgh.

Despite high fuel costs and intense competition in the no-frills market, the airline continued to expand. Flights from London Stansted commenced in October 2005, though a new daily service between Glasgow and Amsterdam, replacing the twice-daily easyJet service between the two cities, was withdrawn in June 2006 due to low passenger numbers.

On 1 November 2005 Flyglobespan announced its first long-haul service, from Glasgow to Orlando Sanford International Airport in Florida, US. The service commenced in June 2006 and was operated by a Boeing 767 aircraft in a three-class configuration. The three classes were Economy, Premium Economy and Business Class which included 50-inch sleeper seats, 'gourmet' food, and wines. Alicante and Málaga services were upgraded to twice-daily throughout the summer for 2006, and Murcia was served daily. Fuerteventura was added to the winter 2006 schedule. Weekly services linking Glasgow with Athens and Heraklion were launched in May 2006 for the summer season. In January 2006 Flyglobespan announced a 70 per cent rise in pre-tax profits from the previous year.

In June 2006 the airline announced plans to operate from Aberdeen Airport after 24-hour airport operation there had been confirmed. The first route to operate from Aberdeen was Tenerife, which commenced in winter 2006. It also announced routes to Alicante, Barcelona, Faro, Murcia, Palma and Paphos, which commenced in summer 2007.

Liverpool was added to the Flyglobespan network from November 2006, with flights to Tenerife. Also added is Liverpool's first connection with Hamilton/John C. Munro International Airport from May 2007. The airline also began Liverpool's first long-haul flight, to New York (JFK), using Boeing 757-200 aircraft, daily in May 2007. However, after a long series of problems with the service, due largely to reliability problems with the route's sole aircraft, which resulted in repeated massive delays on the service[4] Flyglobespan announced in early July that they would abandon the route in October of the same year, only six months after the service's inception.[5]

Flights to Hamilton, Ontario, Canada from Manchester started in November, with two of the three weekly flights. It also commenced a three times a week service from Manchester to Cape Town, South Africa on 4 November 2006, but this service was withdrawn at the end of the 2007 Summer season.

Flyglobespan started new services in May 2007 from Hamilton/John C. Munro International Airport, Canada to destinations in the UK and Ireland, including Doncaster-Sheffield Airport; this was the first scheduled transatlantic flight to operate from the airport. Hamilton Airport is located between Toronto and nearby Niagara Falls,[6] about 75 kilometres southwest, or an hour's drive from, Toronto's main Pearson International Airport. Hamilton Airport is about one hour away from Toronto's city centre whereas Pearson International Airport is about thirty minutes away.

Flyglobespan commenced services in May 2007 from Ireland West Airport Knock to John F. Kennedy International Airport with three services a week, and Boston Logan International Airport twice a week. Some flights from Knock to New York made unscheduled refuelling stops at a number of remote locations including Keflavik, Iceland (though this is an exception, when they stopped at a major hub); Bangor, Maine; Stephenville and St. John's, Newfoundland. These refueling stops were scheduled when a 737-800 was used instead of the usual 757-200.

In 2007 Flyglobespan had its Skytrax rating withdrawn and suspended, owing to "product and service inconsistency". The airline did not regain its rating.[7]

In July 2008 Globespan lost its ability to get insurance industry credit card repayment cover, before the collapse of Zoom and XL. From that point, credit card clearing company E-Clear, whose CEO was Elias Elia, rather than paying the normal amounts of cash to Globespan, argued that in certain cases passengers could make valid claims against them via the credit card companies up to six months after having taken their flight. E-Clear hence held a greater amount of money paid through them to Globespan.[8]

By October 2009 the amount of money owed by E-Clear to Globespan was in dispute; Globespan later claimed it to be £35m. After various discussions, Globespan asked E-Clear to agree to independent audit of the sums, which was turned down by E-Clear. Also at this point, Halcyon Investments—the operational arm of an August 2008 Jersey-based trust fund—offered to make a large investment in Globespan. Halcyon's investors included Elias Elia.[8]

In November 2009 The Independent on Sunday reported that Flyglobespan had required a 'last-ditch cash injection' as a result of cash flow difficulties caused following delays in payment by a credit card clearing company, E-Clear.[9]

Concerns regarding the future of the airline resurfaced on 13 December 2009 when several newspapers reported that Flyglobespan had so far been unsuccessful in obtaining regulatory approval for the funding package from Halcyon Investments. The Guardian suggested that Halcyon Investments was controlled by E-Clear.[10] The company stated it had "secured a financial investment package that will see Scotland's leading airline continue to prosper and grow".

The Globespan Group PLC, Globespan Airways Limited and Alba Ground Handling Limited ceased operations on 16 December 2009 and were placed into administration on 17 December with PricewaterhouseCoopers appointed as the administrator. The last flight was GSM706 from Hurghada to Glasgow which landed at 2230 on 16 December.

On 19 January 2010 a High Court judge granted an administration order, following a request from PriceWaterhouseCoopers (PWC), against credit card processing firm E-Clear UK[11] which handled all of Globespan's credit card transactions.

Bruce Cartwright, Joint Administrator, of PricewaterhouseCoopers stated after E-Clear UK's Administration that it was clear the funds withheld from the Globespan Group were no longer there.[12]