Concerns raised about Kiss tow years ago
19.08.10
Concerns about collapsed flights firm Kiss Flights were raised almost 2 years ago, the BBC has reported. Cooperative Travel decided not to sell Kiss flights because of worries about its business model - that the flights were too cheap and the business was not sustainable. Kiss, which sold flights on charter airlines, folded on Tuesday, hitting the holiday plans of more than 70,000 customers, 13,000 of whom are abroad.
Mike Greenacre, head of Cooperative Travel, told Radio 4's PM programme he raised his concerns with the CAA when Kiss was formed by parent company Flight Options almost 2 years ago. He said: ‘We were sceptical, based on the fact that we didn't think that the business model was sustainable. The product, the flights in particular, were just too cheap. We took a commercial decision not to sell [Kiss] flights.'
Mr Greenacre told the programme that he was ‘surprised’ and ‘concerned’ when the CAA gave Kiss a licence to operate. In a statement, the CAA said that it had looked into the concerns raised at the time. Through its ATOL scheme, the CAA is arranging to bring home travellers and has said most holidaymakers will receive refunds.
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