First launched in 2002, Scotland’s largest airline expanded rapidly to serve destinations around the world, with 800 full-time staff and a multimillion- pound turnover.

It was the brainchild of Scottish businessman Tom Dalrymple, who left school at 16 to work for Mackay’s Travel Agency in Edinburgh, and formed the breakaway Globespan Group in 1974.

Operating as a successful independent travel booker for nearly three decades after that, it was in 2002 that Mr Dalrymple realised a longstanding ambition by starting his own international airline, the no-frills carrier Flyglobespan.com.

Despite the rigours of the post-9/11 world, Flyglobespan grew quickly and steadily, doubling in size several times within its first few years of life.

It quickly became a serious challenger for larger budget start-ups like Ryanair and easyJet, and four years after its launch the firm’s energetic founder, now in his mid-1960s, felt comfortable to stake a claim for the title of Scotland’s national airline.

“Our drive is to develop a network to match that aspiration,” he told The Herald at the time, and many industry observers seemed convinced that this bold ambition would be realised.

In 2007, before the current recession had struck, Flyglobespan reported its sixth consecutive year of growth, with turnover and passenger numbers both up on the summer before.

Despite a dip in profits, Mr Dalrymple was named by The Herald Magazine the following year as one of “Scotland’s ­Finest” ambassadors for his achievements in the field of travel and tourism, and the Management Today Magazine listed him as the UK’s 15th most successful entrepreneur.

Spiralling fuel prices were taking their toll, however, and the firm posted a loss of nearly £20 million for the year to October 2007 compared to a £5m profit for the year before. With input costs almost doubled in the space of 12 months, Flyglobespan was forced to raise passenger surcharges, further hitting its ability to compete.

Other airlines were forced to the wall, including the business-class only Silverjet, which left thousands of passengers ­stranded worldwide, and in 2008 tourist operators XL and Zoom followed suit by calling in the administrators.

Profits showed a slight improvement, however, for the young Scottish carrier, and in January of this year it was able to report a £1.2m trading surplus for the year to October 2008.

Even within the past month Flyglobespan remained defiant, issuing an insistent statement promising that it “would continue to prosper and grow” in the years to come, and denying reports that a last-ditch “cash injection” was needed to keep it afloat.

But over the past week, the situation has grown bleaker.

Globespan was forced to admit that it was awaiting regulator approval for an investment from Halcyon Investments, a Jersey-based firm with involvement in a number of smaller airlines, and it is understood to be the failure of this deal that caused the airline’s eventual collapse.

With no possibility of rescue in the weeks ahead, the airline has already told its 800 staff that their positions are set to go, and up to 5000 holidaymakers have been forced to make last-minute bookings on already-crowded flights if they are to travel in time for Christmas.

 

Q&A: What happens now?

 

I’m due to go on holiday with Globespan. What will happen?

Flights have been cancelled with immediate effect, so you should not go to the airport. Instead, call the advice hotline on 0871 271 9000 (+44 141 332 3233 from overseas). The number will be active from 10am today.

 

Can I get my money back?

If you booked flights and accommodation as a package, then yes - you will be covered by the Civil Aviation Authority’s ATOL scheme. See www.atol.org.uk for details.

If you booked flights on their own and used a credit card, you are probably covered under the Consumer Credit Act 1974, and will get your money. If you did not use a credit card, you are unlikely to get your money back, though your travel insurance may cover it.

 

I’m stranded abroad, or someone I know is. What should I do?

If you are on a package holiday, the CAA will arrange a flight home. See www.atol.org.uk or, if you are in particular distress, call 0044 2891 856 547 for advice. If you booked through a travel agent, contact it directly.

If you booked only flights with Globespan, however, you are not covered. Other airlines may offer special discounted fares to help you get home, with information available on www.atol.org.uk.

 

In all instances, the administrators should provide advice. Their helpline is: 0871 271 9000 (+44 141 332 3233 from abroad).

 

 

chris.watt@theherald.co.uk