500 jobs at risk after STA travel agency collapses

POPULAR backpacking and youth travel agency STA Travel has gone bust, the latest business to collapse after the coronavirus turned the industry on its head.

STA, which employs 500 staff across 50 branches in the UK, ceased trading yesterday, Abta, the trade association of travel and tour operators, confirmed.

The agency, founded in Australia, was criticised for its handling of flight cancellations and travel restrictions early on in the pandemic, with many of young British customers complaining that they had been left in the lurch while travelling.

Students claimed that when the Foreign Commonwealth Office announced that all travellers should return to Britain in March, STA left them to arrange their own travel home or offer exorbitant fares.

They were alleged not to have refunded bookings.

Abta said that the majority of booked holidays were packages that were protected by the Civil Aviation Authority’s ATOL scheme, meaning customers should be able to get a refund.

The company’s parent company, which is based in Switzerland, filed for insolvency earlier this week.

STA posted a statement on its Twitter feed advising customers that it will no longer be able to assist with queries and to wait for an email in the “coming days”.

“We are sorry for the inconvenience and the limited information that is available to you at this time,” it said.

Abta directed customers to its website for further advice.