Reputation Management Online

December, 09 all flights of Flyglobespan were cancelled after its parent company, Globespan, entered administration. An attempt to enter a financing deal with Jersey-based Halycon Investments broke down that led to Flyglobespan collapse.

The firm blamed for the deadly blow to Globespan was E-Clear, a credit card processing company. When passengers book tickets online with their credit card, the money goes into the booking site (E-Clear) and is then passed on to Flyglobespan. So it’s all about the way money reaches the airline after it was processed by E-Clear

It was learned that E-Clear withheld £35m from Globespan, this was money that had been paid for tickets, but was not been passed on to the airline. They also diverted £1.5 million to keep its struggling sister company Allbury Travel alive.

E-Clear was forced into administration by Globespan’s in an effort to reclaim the missing cash and Allbury Travel was closed.

This disgraced episode only raises few doubts, No credit card company can hold money of this size particularly if that business depends on cash flow, so what was Globespan doing to retain the non-payment?  Secondly why did they continue to use E-Clear when payments were not being processed?

This is a strange situation and it’s getting murkier by the day and it’s time for some close introspection about the reputation of credit card processing companies. Airline reputation management is going through its most turbulent times.

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