XL Airways, one of the French budget airlines announces liquidation on 19th September 2019 due to financial crisis and stops all its flights. XL airways is operating its short distance flights to and fro from France, including New York City, San Francisco, Punta Cana, Dominican Republic, Varadero, Cuba, and Cancun, Mexico. Catering to the major needs of holiday crowd on a low cost model, the airlines used to charge the best prices for the holiday goers with the facility of seat selection, meals and luggage options with a nominal fees based on the preference.
The company was facing tremendous pressure, from the past 15 years as there was a frequent change in the management and also the Air France and Lufthansa the pioneers in the airline industry experimenting with the budget operations to attract more customers lead the XL airlines to sink. XL Airline apologized with the customers on their decision of closing the airline as most mid-flight passengers are stuck at their destinations and they are struggling to find the alternative facilities for return flights. The company also advised the customers to look the status of flights before their travel to avoid inconvenience.
The airline was founded in the year 1995 with the trading name as star airlines and in the year 2006, it renamed as XL Leisure. The year 2008 the said airlines declared bankruptcy, and then the airlines was brought by Straumur Investment Bank.
The French Finance Minister, Bruno Le Maire blamed the airline itself responsible for its financial crisis because of cutting prices to keep the market share in the budget airlines sector. XL airlines had a hope thinking Air France would revive planning for their budget airlines but it did not work out. Finally, they hauled all its operations and closed the sales of tickets. Due to this decision of XL Airlines, it stranded around 11000 employees worldwide.