How did MyTravel get into difficulties?
Initially, it offered its bondholders (banks and other City institutions) shares if they agreed to cancel the debts. The bondholders rejected that offer, so, last week, MyTravel started court proceedings to force the deal through. A judgment is expected this week. Is it really likely to collapse? It’s possible, but the company says that after a period of cost-cutting, it is in good shape and bookings are healthy. The important thing to remember is that MyTravel is fully bonded with the CAA. Should it fail, the CAA would use the company’s bond to ensure that holidaymakers were not left out of pocket. If you were in a resort and MyTravel went belly-up, your trip would continue as normal. If its flights were suspended, the CAA would organise for you to be flown home by another airline. You might not even realised that anything untoward had happened. What if I had yet to travel? You would apply for a refund through the CAA. Most are paid within about a month. However, if a tour company goe
