p10-11 wyatt dec12 10/12/08 20:52 Page 10
news Phil Wyatt exclusive interview
ttglive.com
XL’s Phil Wyatt break
EXCLUSIVE INTERVIEW, PART ONE: Phil Wyatt has finally told his
(TTG June 13). I had to call him and tell him he
side of the story. The man at the helm of XL Leisure Group, the UK’s
wasn’t going on the stage,” said Wyatt.
third-largest operator that went bust in September, gives TTG editor
“Phil [Aird-Mash] didn’t want to take over as
chief executive of the whole group so, since I was
Lucy Huxley a frank account of the events that led up to travel’s
the largest shareholder, I said I was prepared to
biggest failure for 17 years, in TTG’s sensational two-part interview
stand in as interim group chief executive.
“Phil and the rest of the board knew that my
longer-term intentions had not changed, and it
P
hil Wyatt looked a lot better when I to work on the refinancing and I would stand was on this clear understanding that I took the
met him than he had the last time down but stay on as deputy chairman. role on.”
the world saw him. The former boss “This was a role that took me out of
of collapsed XL Leisure Group was day-to-day management as it was a role that FUEL AND THE CRUNCH
last seen fighting back tears at a televised was part-time. In essence, I was running down “But it soon became clear that with the spike in
press conference in Gatwick. my year’s notice on my contract. fuel, we had some major issues.
The travel giant had gone bust, leaving “My skills set is entrepreneurial, not “I was disappointed with the progress that
thousands of agents and customers out of corporate; but Peter was originally a non-exec had been made on the refinancing due in part
pocket and the industry grappling with the of XL and had all the right credentials along to the turbulent state of the markets. The
biggest failure since ILG folded in 1991. with a formidable CV. refinancing, on closer scrutiny, just hadn’t
The national press hounded him, sending “XL had grown from being just a UK-based reached a maturity that I was led to believe.
helicopters over his house and photographers brokerage to something pretty big, with “As I said, the credit crunch had also started
to camp outside the front door of the man operations also in France and Germany. to bite and we had to go and speak to the
“who ruined thousands of holiday dreams”. “After spending nearly 10 years of my life people behind the management buyout loan for
Wyatt went to ground, so it was surprising building XL it was obvious I wanted to leave $280 million.
when he agreed to be interviewed. But three with a bit of money. I had some ideas for a new
months on since the company went bust, Wyatt venture, though nothing concrete, so I thought I WORST-CASE SCENARIO
was keen to give his account of events: how the would take a break, maybe travel for a year, “Before XL folded, I had thought the worst-case
failure unfolded, who he feels was to blame then do something more hands-on.” scenario would be that the banks would have to
and how the business was almost saved. Here, Wyatt said Owen started very well. take equity for the debt – and that while I and
only in TTG, Wyatt tells his side of the story. “He brought in some excellent people, like other shareholders would have lost our money,
Phil Aird-Mash, with Steve Barrass and Mark the company would still have carried on.
SETTING STRATEGY Slater also from MyTravel to complement an “I would have lost my shareholding and it
“We brought Peter Owen in as chief operating exceptional team XL had in place,” said Wyatt. would have been distributed among the new
officer in March 2007 and made him group “As a business, XL had turned a significant management team as ‘sweet equity’, but at
chief executive in June 2007, a year before the corner: Aird-Mash and the team had got least XL would have continued. At that stage, I
company failed,” said Wyatt. control, it was in good shape and future sales would have been happy with that.”
“The board knew I wanted to step down and were 11% higher than the previous year.
do something smaller, so the plan was for Peter “The on-time performance of the airline was REFINANCING
excellent and we were also starting to see the Wyatt was on holiday in Crete in August when
West Ham sponsorship kick in with far better he decided to travel back to the UK to meet the
XL Leisure Group
consumer recognition. two Icelandic banks behind XL: Landsbanki and
“If only we’d had the fame when we were Straumur Investment Bank. The guarantor on
The companies that collapsed alive that we had when we were dead, just the management buyout loan, Eimskip, was
XL Airways airline with 20-aircraft fleet imagine how successful we’d have been.” also present and the parties tried to finalise a
XL Holidays inhouse tour operator protracted discussion and deal with a proposed
Aspire Holidays upmarket tour operator OWEN BANKRUPT refinancing plan called “Phoenix Wings”.
Freedom Flights seat-only operator But the improvement was not to last. Phoenix Wings was a deal brokered by
Medlife Hotels accommodation-only specialist The first sign that things were starting to E Clear, XL’s credit card merchant services
Travel City Direct Florida specialist unravel came in June. provider and driven by E Clear chief executive
Kosmar Greece and villa specialist “Peter Owen was declared personally bank- Elias Elia and his advisory board. The plan,
rupt but was due to speak at the ITT conference described by Wyatt as a “brilliant business
10 12.12.2008
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