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BA to the rescue

Hundreds of passengers found themselves stranded after the low-cost airline became the first victim of a vicious price war and went into administration.

British Airways said: "We are offering to help anyone who has found themselves stranded in the UK or in Europe.

"Anyone with a Debonair ticket should make their way to an airport where BA flies and we will offer to fly them to their destination for 25% of the lowest bookable fare."

The spokesman said the BA offer would last as long as the travel chaos caused by the Debonair crisis continued.

Passengers expecting to fly from Luton airport earlier found notices pinned on empty Debonair check-in desks saying the company had been placed in the hands of receivers Deloitte & Touche (D&T) by the High Court.

They were told to contact their travel agents to make alternative arrangements.

One passenger, Pablo Criado, a 23-year-old student from Madrid, was left stranded with just £3 in his pocket as he prepared to fly home after working for two months in Wolverhampton.

Mr Criado said: "I got up at 5am and had to catch three trains to get to the airport.

"When I arrived it was the first time I knew about it. Now I have to phone my mother so she can go to the bank in Madrid and put some money into my credit card account."

Monty Davis, 28, a Canadian who lives in New York, was due to meet his girlfriend in Pamplona, Spain, after staying with friends in London.

"I was due to be on a Debonair flight yesterday, but I got a bit delayed and didn't make it.

"I heard they had gone bankrupt on the radio 15 minutes before I arrived.

"I fly a lot and I've had delays, but it's the first time I've been held up because the company doesn't exist any more."

Frank Pulman, chief executive of Luton Airport, said some of the passengers were "a bit confused".

He added: "Some who may not have heard about it are rather shocked, and have now got to try and make alternative travel arrangements.

"It is a little confusing for some people."

Passengers will have to pay for alternative travel arrangements, but can submit claims to D&T.

Possible buyers

Debonair blamed its problems on cut-throat competition from other "no-frills" airlines such as EasyJet, Ryanair and the British Airways low-cost subsidiary, Go.

As news of its financial struggles emerged, market analysts predicted that possible buyers could include Virgin as well as Lufthansa and Swissair.

Debonair - which flies from Luton and Gatwick to Germany, France, Spain and Italy - has failed to make a profit in the three years since its launch.

The company last month reported a first-quarter loss of £2.2m, up from £1m in the same period a year earlier and despite a 65% increase in sales.

The main reason for its difficulties is the fact that it is the only one of the "no-frills" airlines not to have a major backer.

Go, which has lost £20m in its first 17 months, has BA behind it, Virgin Express has Richard Branson and Easyjet has the backing of the wealthy Stelios Haji Iannou and family.

Crisis-hit Debonair Airways Ltd, based at Luton Airport, is not related to Debonair Cargo Ltd, which is based at Leeds-Bradford International Airport.

Relevant Stories

Debonair planes grounded (01 Oct 99 | The Company File)
Debonair's dream brought down to earth (01 Oct 99 | The Company File)
KLM buzzes into no-frills flights (23 Sep 99 | The Company File)
Go loses £20m since take-off (07 Sep 99 | The Company File)
Will discount rivals just Go away? (22 May 98 | The Company File)

Internet Links

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