Edinburgh-based Flyglobespan has dismissed suggestions it is suffering in the current market after announcing the closure of two retail outlets in the city.
“Flyglobespan’s financial position is healthy,” said a spokesman. “The airline has significant cash deposits, substantial property assets and is 100% owned by one of the country’s wealthiest businessmen.”
He added: “Big debts and a lack of cashflow brought down XL Airways and other carriers. Flyglobespan has 30 years of trading behind it and no debt.”
The carrier is owned by founder Tom Dalrymple, who has a personal fortune of £75 million and was 1,049th in the most recent Sunday Times Rich List.
The Edinburgh shops remain from Dalrymple’s original travel agency business. The spokesman said the leases were up and the airline had long planned to close them.
Flyglobespan reported a loss of £13 million last year, but expects to return to profit this year. The spokesman said: “We have had the most successful summer yet, load factors are up, yields are up and advance bookings are good.”
The airline carries two million passengers a year – flying primarily to European leisure destinations from Glasgow, Aberdeen and Edinburgh, with a daily summer service to Florida and operations to Canada.