Holiday airline company goes bust

Nationwide operated return flights from Gatwick airport

Thousands of holidaymakers are being booked on to alternative flights after a South African airline flying out of Gatwick ceased trading.

Nationwide, which operated four return flights a week to Johannesburg, said its cash-flow had become critical.

Saga, the over-50s travel company based in Folkestone, Kent, which uses the airline, said it had booked customers on other flights at no additional cost.

Two other UK firms, Thomas Cook and Kuoni, are also booking other flights.

The last Gatwick flight operated by Nationwide was on Monday night, but the plane flew to Shannon in Ireland, not to Johannesburg.

Lost engine

A recorded message on the airline's UK number on Wednesday said the carrier had applied to the South African courts for voluntary liquidation.

The Nationwide fleet was grounded last November after a plane lost an engine on take-off.

The airline said in a statement it resumed operations in December and January.

But in March and April it faced a 30% increase in fuel costs and a decrease in passengers.

"Our cash flow has become critical and as a result we have decided to voluntarily cease all flight operations until further notice," it said.

Saga Holidays said it had made arrangements for customers to fly with British Airways, Virgin Atlantic, Lufthansa and South African Airways.

"This has been at no additional charge to our customers enabling their holidays to proceed, and applies whether yet to depart from the UK or already on holiday in South Africa," said travel communication manager Carl Catterall.