COVID-19 has left another travel company fighting ’till the end, with STA Travel sadly next in line to file for insolvency.
In what is more devastating news and another indication of the worst times ever for the travel industry, STA Travel has today filed for insolvency.
An external administrator is expected to take over the student and youth travel company over the next few days to decide where to go from here.
It is expected that STA Travel’s local day-to-day operations will continue around the world for now, as it is STA Travel Holding AG in Switzerland that has filed for bankruptcy.
In a statement, the company explained that despite the decisive measure to secure the business beyond the pandemic, sales had not picked up as anticipated.
“The global magnitude of the pandemic crisis has brought the travel industry to a standstill,”
“STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances.”
STA Travel Holding AG Spokesperson
Misleading Ads prove costly
Back in April, The Federal Court ordered that STA Travel pay $14 million in penalties for making false or misleading claims when advertising its MultiFLEX Pass product.
“These penalties serve as a timely reminder to all travel businesses that they must not misrepresent the costs applicable when travel services are changed.”
ACCC Commissioner Sarah Court
STA Travel currently has 35 stores throughout Australia and 11 stores in New Zealand.
READ THE FULL STORY: STA Travel Ordered To Pay $14M By ACCC For Misleading Ads
We will keep you updated as the situation unfolds.