XL grounded after funding dries up

XL Leisure, the UK's third largest package holiday provider has gone into administration.

Alastair Beveridge, Nick Cropper, Simon Appell and Stuart Mackellar, of Kroll are now in control of the ailing business.

XL blamed volatile fuel prices, the economic downturn, and the fact that they were unable to obtain further funding for the collapse.

'The joint administrators cannot continue trading the business and therefore all flights operated by the companies have been immediately cancelled and the aircraft grounded. Going forward, the joint administrators are unlikely to be able to trade the business or operate the aircraft,' the company said in a statement today.

XL Airways UK Limited, Excel Aviation Limited, Explorer House Limited, Aspire Holidays Limited, Freedom Flights Limited, Freedom Flights (Aviation) Limited, The Really Great Holiday Company plc, Medlife Hotels Limited, Travel City Flights Limited, Kosmar Villa Holidays plc are now all in administration, XL added.