Airline launched by 'baby Branson' grounded one week after take-off

Published on Wednesday 10 March 2010 21:59

A SECOND airline launched by the so-called "baby Branson" has been forced to suspend flights after only one week, because it allegedly failed to pay aircraft bills.

Varsity Express, which operated daily flights between Edinburgh and Oxford, has been grounded, leaving some 500 passengers with bookings.

The fledgling airline's troubles come four years after Martin Halstead, then aged 19, launched Alpha One Airways, which flew between Edinburgh and the Isle of Man for just six weeks.

The owner of the single 18-seat aircraft used by Varsity Express plans to pursue Mr Halstead, who is now 23, for up to 20,000, the amount he said he is owed in unpaid bills.

Jon Ibbotson, owner of Humberside-based Links Air, said: "They have not paid bills and were in breach of contract – they failed to meet their obligations. I'm distraught with it all."

Varsity Express was launched on 1 March and had planned to add a second daily return flight next month along with a second route between Oxford and Newcastle.

However, on 8 March it "regrettably" announced the suspension of services. A statement on the airline's website said: "The reason for this suspension is due to operational issues between Varsity Air Services Ltd and the airline and air operator certificate (AOC) holder who have been contracted to operate the Jetstream 31 type on our behalf and that was being used on the route."

The statement said passenger bookings were safeguarded by a voluntary revenue protection scheme and full refunds would be made "if necessary".

It added: "The board of Varsity Air Services Ltd are in current negotiation with potential aircraft operators and AOC holders who could provide the operational capability required to allow the resumption of services, on what has already proved to be a very popular, viable and sustainable route.

"The board are hopeful that Varsity Air Services Ltd will be able to resume full operational services in the very near future."

Sources close to the airline claimed Varsity should have provided flight crew and the cost of landing fees and fuel, but this was left to Links Air, along with the aircraft, maintenance and insurance costs.

A couple from Oxford said her weekend break to Edinburgh had been ruined by the flights suspension.

Serena Mason, who travelled with her husband Graham, said: "We were due to fly back on Monday, but when we got to the information desk in the main terminal, where someone from the airline was supposed to meet us, one passenger said they been given a letter from Varsity Express saying the flight had been suspended.

"About 13 of us were forced to find alternative flights and we had to buy tickets to Heathrow – and some passengers were understandably very angry. I think it's ridiculous after just a week."

Sir Richard Branson said of Mr Halstead at the launch of Alpha One Airways: "He's a very nice lad and as bright as a button. If anyone can succeed in business, he can."

The Virgin Atlantic president was not available yesterday.

A spokesman for Oxford Airport said it was now talking to two "established airlines" about taking over the Edinburgh route.

Mr Halstead was not available for comment last night.