Phil Wyatt: the controversial travel CEO who could fly again

Phil Wyatt, head of defunct travel firm XL, is a controversial entrepreneur who made his money with a string of charter airlines. And, although his latest company's planes are grounded for good, he could soon be back in business.

A big tour operator can be guaranteed to go bust in every downturn. But the fall of Britain's third largest was swift by any standards. On Thursday last week, bookmaker Paddy Power gave 10-1 odds that the XL Leisure Group would be next to fold, says The Times. By early Friday, it had come "to a messy standstill at the end of the runway", robbing 264,000 people of their pre-booked holidays and leaving 85,000 more beached abroad, says The Sunday Times. It also ended an unlikely alliance between "the sharpest traders in the murky world of British charter airlines and a group of Icelandic billionaires". At least XL's head, Phil Wyatt, had the grace to cry while apologising to customers (although his contrition may have seemed more genuine had XL not kept taking money from punters, even as the administrators sharpened their pencils). He blamed the oil spike, which saw the airline's fuel bill jump a whopping $82m, but was reticent on the subject of XL's $280m debt, which ultimately proved the coup de grace, says The Independent. "As ever, the lesson is that debt is a killer."

As the Travel Trade Gazette observed in 1997, Wyatt, 45, had "an unenviable reputation", and was seen by many rivals as "Public Enemy Number One". His father, Harry Wyatt, was an industry legend who had set up Monarch Airlines in the 1960s. Young Phil joined the firm as a junior clerk, before teaming up with his brother to launch Goldcrest Aviation in 1991. It was here his career really took off, says the Daily Mail. He courted controversy by chartering cut-price planes, of questionable safety, from Yugoslavia and Slovenia. Opponents claimed he had "set back the image of the charter industry ten years". But Goldcrest raked it in. Wyatt was part of a group of sharp-dealing entrepreneurs who "plied their trade around Gatwick" and "either created, brokered, and in some cases ditched, a string of charter airlines", says The Sunday Times. When one venture, Excel, floated on Aim in 2002, Wyatt's 10% stake was worth £18.5m. Soon after, the Icelanders moved in.

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