PwC: Kiss Flights collapse unexpected
PwC partner said collapse of Kiss Flights was unexpected
“No-one expected” holiday operator Kiss Flights to fall into administration
at the height of the holiday season, said PwC partner Ian Oakley-Smith.
Holiday operator Flight Options, which also trades under the name Kiss
Flights, announced on Tuesday it had ceased trading affecting about 70,000
people.
Oakley-Smith said to see a flight business run out of money during the height
of the holiday season was unexpected.
Budget holiday operators such as Goldtrail, Sun4U and Kiss Flights, work off
low margins and emergency reserves which have been eroded by the downturn, he
added.
His comments were echoed by Baker Tilly restructuring and recovery partner
Mark Wilson.
“Government statistics published this month revealed a 12% drop in people
travelling overseas for their holidays in the twelve months to June 2010. At the
same time, visits for overseas businesses fell by 19%,” said Wilson.
The travel industry has seen double digit administrations this year, he said.
Further reading:
BDO
lined up for administration of Kiss Flights
Begbies
administrators appointed at collapsed Goldtrail