Airline Folds While Awaiting Credit Card Debt

Last year, I blogged about how Frontier Airlines was forced into bankruptcy because of credit/debit card reserves being held by First Data.  See: Mayday! Mayday! Mayday!  To First Data's "credit" they worked with Frontier to alleviate the problem caused by the reserves.



Now, Compare and Save is reporting that payment processor E-Clear withheld as much as £35m in fees owed to the leading Scottish airline, contributing to Flyglobespan's collapse... 



Airline folded 'while awaiting credit card debt'

22 December 2009 11:43:12

Scottish airline collapsed after failing to receive credit card payments.

Payment processor firm E-Clear is being investigated over an alleged £35m debt which contributed to the downfall of Flyglobespan.



The leading Scottish airline collapsed last week, leaving as many as 4,500 holidaymakers stranded in a number of destinations in Europe, North America and north Africa.



Further confusion arose over the weekend as Allbury Travel, which is owned by E-Clear chief executive Elias Elia, also ceased its operations with immediate effect.



Continue Reading at Compare and Save