ABTA has revealed failed operator Golden Sun Holidays
was to be thrown out of the organisation next week.
Golden Sun’s 200,000-passenger £9.8 million bond was
pulled last week after the operator informed the Civil Aviation
Authority it could not continue trading.
ABTA said it was “only a matter of time” before the eastern
Mediterranean operator’s membership was terminated following
complaints from hoteliers over unpaid bills.
It had been keeping a close eye on Golden Sun, which appeared in
front of the body’s code of conduct and membership committees
five times this summer.
The membership committee was expected to make a recommendation
to the board to throw the operator out at a meeting on October 8. A
spokeswoman said: “I know it’s easy for me to speak after the
event, but we were very close to pulling its membership.”
A liquidator had yet to be appointed when Travel Weekly went to
press. The trade was also bracing itself for more failures with CAA
bond renewals due this week.
Meanwhile, prices to the eastern Mediterranean are predicted to
rise with Golden Sun’s capacity taken out of the market.
Golden Sun, which offered seven nights’ self-catering for
as little as £75 per person in the lates market, is thought to
have played its part in dragging down prices.
Sunvil Holidays managing director Noel Josephides said £250
holidays would have meant selling at a loss, or breaking even at
best. He claimed prices needed to be £350-£400 to make
any profit.
“Greece has been seen as a dumping ground for capacity.
We’re all dragged down when operators sell cheaply. An
operator is treading water at £250,” he said.
Midconsort chief executive Charles Eftichiou agreed. “With the
capacity out, it should bring a reality to the market.”
Libra Holidays sales and marketing director Paul Riches added:
“We’d all like that capacity to disappear and get more
revenue for existing capacity.”