Golden Sun goes down

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.”