sta travel insolvent

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STA Travel collapses into liquidation following creditors meeting

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S’pore Tour Agency STA Travel Shuts Down – Owes Customers, Former Staff Up To S$1.43M

In this article

[Updated: 2 October 2020]

Singapore’s travel and tourism industry is battered due to the Covid-19 pandemic, and has seen yet another loss.

STA Travel, a company focused on providing package holidays for students and young people, has been reported to be closing down for good.

An announcement on the STA Travel website states that they are unable to assist anyone, and those who had previous or live bookings will “receive further communication in the coming days.”

On Facebook , the tour agency is listed as “permanently closed”, with its last post on the page dated August 19 this year.

STA Travel stopped operating after its parent company in Switzerland filed for insolvency last month.

This year, the company was reported to have had almost “ 2,200 people working in over 200 stores around the globe “.

The statement of the company’s assets and liabilities (as of September 10) showed that it owed S$439,000 to former employees.

More Than 600 Creditors

Besides staff, The Straits Times said that as many as 682 customers who are listed as creditors are owed a total of S$635,000.

Audit firm Deloitte & Touche has issued a notice which listed the potential creditors on behalf of STA Travel last week.

According to this list, the biggest sum of S$84,088 is said to be owed to an individual.

The agency also lists organisations such as National University of Singapore (NUS), Singapore Management University (SMU), and Nanyang Technological University (NTU) and Republic Polytechnic as creditors.

Some of them have been refunded in STA Travel vouchers, with little guarantee that they will get their cash back.

Based on an estimated timeline showed to creditors by Deloitte, it will be at least six months later before STA can recover its assets. The earliest date would be April 2021.

The company then has to settle the costs owed to former employees and statutory taxes, before unsecured creditors — such as customers — will be paid.

It is unsure if STA will have enough to pay its unsecured creditors, after covering all its other repayments.

In total, the firm owes its ex-employees and customers nearly S$1.43 million.

The tour agency was started by two Australian students in 1979, and was known as Student Travel Australia before the brand expanded globally.

STA Travel is also well-known amongst the local student population in Singapore, with outlets in NUS, SMU and NTU.

Many students would patronise these stores to book discounted flights or access special student deals when planning for their studies abroad.

The Consumers Association of Singapore said it received 11 complaints against STA Travel since January 1 this year.

The situation is similar around the world, with news reports in the United Kingdom, Australia and New Zealand highlighting the same issue.

Featured Image Credit: Nanyang Technological University

Also Read Are S$100 Tourism Vouchers Enough To Fill The Gaping Hole Of Tourism’s Declining Revenue?

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STA Travel Closes Its Doors After 41 Years Leaving Many Out Of Pocket

The shock announcement that sta travel was filing for insolvency late last week was followed with confirmation that the 41-year-old travel business had gone into voluntary administration..

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Webjet to operate as two companies after demerger vote passes, international travel boosts new zealand economy by $3.1b – up 41% on fy23, 'me-cations' trending with aussies as one of the top reasons to travel in 2024.

London headquartered STA Travel Holding AG had filed for insolvency last week, after making the decision that the global business could not continue to trade in light of COVID-19 and the financial impact the company had already suffered.

In a statement, the company explained that despite the decisive measures 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,”

“We have left no stone unturned and took decisive measures trying to secure the business beyond the pandemic crisis. We very much regret to not have been able to secure the future of the business.” Casper Urhammer, CEO STA Travel

It is indeed, the end of an era.

Started by two Aussie student backpackers in 1979, STA originally stood for Student Travel Australia before the brand soon spread around the world.

In 2020, the company reported having almost ‘2,200 people working in over 200 stores around the globe, helping over 2 million travellers a year start their adventure.’

STA Travel currently has 27 stores in Australia and 11 stores in New Zealand which have now closed their doors.

It’s estimated around 180 staff in Australia will lose their jobs following the company’ collapse.

What about people who had trips booked? Will they get their money back?

Currently, statravel.com.au is still live with a link to more information about what going into voluntary administration means for customers and suppliers.

STA Travel had their ATAS accreditation suspended last Thursday, August 20 when the initial insolvency news broke according to the AFTA website.

In a story on nine.com.au, numerous customers in Australia say they had already been left significantly out of pocket with many attempting to have their trips refunded to no avail in recent months since the pandemic began.

On a customer announcement FAQ page on STA Travel’s website, a Deloitte spokesperson said:

“Customer deposits, for example, are in many cases not held in Australia, and third party companies overseas are also involved. This is a challenging situation, and the Administrators are investigating possible options (if any) available to customers to allow them to recover any prepaid bookings or continue their travel plans.”

“Given all Australian STA Travel stores and its call centre were closed prior to our appointment and its website is down, access to STA personnel is not possible. In the interim, customers holding bookings should contact their airline, hotel or tour operator regarding the status of their bookings. You can also consider contacting your credit card provider if travel bookings were paid by credit card.”

For the best approach to contacting us regarding your booking, please follow the link for more advice – https://t.co/I7Jv8EsO6U pic.twitter.com/jKRsO8pOhL — STA Travel Australia (@statravelAU) March 13, 2020

“Due to the current circumstances, we are not currently in a position to offer any cash refunds for cancelled trips. Customers holding bookings should contact their airline, hotel or travel operator regarding the status of those bookings. You can also consider contacting your credit card provider if travel bookings were paid by credit card.” Deloitte spokesperson, Administrators

For bookings made in the UK however, the majority of holidays flight-inclusive packages sold by STA Travel are protected by the CAA’s ATOL scheme, as well as scheduled airline tickets under its IATA licence and as an agent for the airline.

STA Travel Limited also sold some packages which did not include flights and were protected by ABTA as well as holidays as an agent for other tour operators. Meaning, customers will likely get all their money back.

After 41 years, STA Travel’s closure is yet another kick in the guts for the travel industry due to COVID-19. Our thoughts go out to everyone affected by the news.

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Tour agency STA Travel to wind up, with hundreds of customers affected

SINGAPORE - STA Travel, which had a strong presence in the universities here, is winding up, affecting as many as 682 customers who are listed as creditors for sums possibly going up to $84,088.

It stopped operating on Sept 9, after its parent company based in Switzerland filed for insolvency in August.

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CAPE TOWN FOR CAPETONIANS

Employees and customers left in the lurch by Swiss-owned STA Travel

Employees of STA Travel in South Africa have been left in limbo since 21 August, when the company ceased trading, one of the Covid-19 pandemic’s many business casualties. The company says staff contracts are still valid, which means employees can’t apply for UIF. Yet staff have been paid only a fraction of their August salaries and no September salary.

There has been no communication from the company since 10 September. A STA employee told GroundUp, “Termination letter requests continue to be ignored.”

The international travel company had been operating throughout the lockdown. Staff were working from home at reduced salaries, and the group had managed to reduce costs by negotiating rent holidays on the 21 branches across South Africa, according to a STA manager who wished to remain anonymous.

STA continued to sell packages during lockdown and people were encouraged to book their 2021 trips. Customers whose travel plans were cancelled due to the lockdown, received ‘travel credits’ instead of cash refunds. They were told that these would be refundable when lockdown eased.

Then on 19 August, the holding company, STA Travel Holding AG, revealed to its worldwide staff it would be filing for insolvency. In a statement, Casper Urhammer, the Switzerland-based CEO of both STA Travel and of its holding company, Diethelm Keller Travel Group (which is itself 85% owned by Swiss firm Diethelm Keller Holdings) announced that he would be resigning from leading the STA Travel group, and handing over operations to outside administrators.

On 20 August, it was  reported  that STA Travel Holding AG had filed for insolvency.

As in South Africa, STA Travel in the UK, Australia, and New Zealand, signalled that they would be entering liquidation the next day, on 21 August. In Australia, and in New Zealand, Deloitte was appointed to administer the liquidation.

No public announcement was made about the status of the South African company.

On 24 August, STA Travel South Africa posted an announcement on its Facebook page: “To our valued customers, due to the recent announcement that STA Travel South Africa has ceased trading, unfortunately our travel experts are unable to assist you at this time. Please be assured that if you had a previous booking with us, or hold a live booking, you will receive further communication in the coming days. We are sorry for the inconvenience and the limited information available to you at this time.”

On 25 August, Justin Kable, the country manager for STA Travel SA, sent an email to all STA Travel employees, which announced that – following the decision to cease trading – “We are trying our best to provide as much information as we can during these difficult times and will provide regular updates.”

On that day, employees were not paid, though this was not mentioned in the email.

The next and so far final update from Kable was on 10 September. Kable announced then that the STA South Africa board had decided to enter voluntary liquidation, and that the board had “recommended this view to the shareholder and requested that the shareholder adopt a special resolution to voluntarily wind up the company under the supervision of the creditors”.

According to the Swiss companies register, STA South Africa’s shareholder is STA Travel Holdings AG. With this shareholder being liquidated, how and who is responsible for issuing the special resolution is uncertain. GroundUp’s attempts to contact STA Travel Holdings AG have been met with silence.

STA employees

“Whilst we await action on the above view, presently all contracts of employment between the Company and employees continue as per their existing terms and conditions. You will be provided with further updates as to effect on the employment relationship as the process of winding up the company progresses,” Kable said in his 10 September email.

Since staff contracts are said to be still valid, staff claim they are unable to apply for UIF. Many are hoping they can get Covid relief funds.

A STA employee told GroundUp, “We’ve still received zero update on our August salary. Termination letter requests continue to be ignored.”

Some employees told GroundUp that there had been retrenchments during the lockdown period, and reduced salaries, but the liquidation announcement came as a shock, since staff had been selling travel packages believing that these would be honoured.

Frustrated customers have been harassing their travel agents to find out about the status of their trips and the money they paid. Some staff have shut off their social media accounts and personal phones because of the constant calls. They say they have just as little information as the customers.

According to the Insolvency Act, when employees’ contracts are suspended due to liquidation proceedings, they are entitled to unemployment benefits. But no liquidators have been announced.

Attempts to find out whether a liquidator has been appointed in South Africa have so far been unsuccessful. The computer system for the Masters of the High Court in Johannesburg, where STA Travel holds its registered headquarters, has been down for more than a week, according to a staff member. Calls to the national office of the Masters of the High Court have been unanswered. Deloitte has said it is not involved.

GroundUp has contacted STA Travel’s South African auditors, PWC, and is awaiting a reply.

Meanwhile hundreds of customers have been left stranded. STA Travel SA’s Facebook page is filled with customers who have no idea what is happening to their deposits. Some claim STA Travel has received refunds from airline companies, and has not passed these on to consumers.

On the company’s website, all pages have been replaced by a statement: “Please be advised that the board of directors of STA Travel (Pty) Ltd has resolved not to begin business rescue proceedings (as contemplated in the Companies Act, 2008),” and a link to a pdf which contains a copy of the Form CoR123.3 (Notice of Decision Not To Begin Business Rescue), and a fuller statement from the board of STA Travel. This communication is signed by Reinhard Kotzaurek.

On the website of the Companies and Intellectual Property Commission, STA Travel South Africa is now listed as being in voluntary liquidation.

Attempts to contact the directors with the details available on STA Travel South Africa website have been unsuccessful.

Diethelm Keller Holdings replied to us: “STA Travel Holding AG was an independent legal entity. You may want to contact the local authorities to find out more about the assigned official administrator in respective countries – we may not provide any contact details. FYI, Diethelm Keller is not insolvent.”

According to the Diethelm Keller Group’s  2019 Annual Report , their business unit, Diethelm Keller Travel (85% owned by DKG), of which STA Travel was the jewel in the crown, achieved sales of approximately R23.4 billion in 2019.

Source: GroundUp

Picture: James Stent

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Help! My Travel Agency Shut Down and I’m Out $2,000

Our columnist investigates whether there is any recourse for a canceled flight booked through STA Travel, which filed for bankruptcy in August.

By Sarah Firshein

Dear Tripped Up,

Earlier this year, I used STA Travel to book a British Airways flight from Tucson, Ariz., to South Africa, scheduled to depart in March. Then the pandemic hit, one of the flight legs was canceled and I canceled my trip. After some back and forth, STA secured a refund from British Airways. I was told by an STA representative that my airfare — $2,059.36 — would be credited back to my credit card account within 60 days. Two months came and went. Then I learned that STA had gone out of business. Kaitlin

Dear Kaitlin,

When I first read your email, I was hit with an inkling of hope that your credit card company could rush in and save the day. Still, I set off to learn more about the laws and policies at play, so I did what I usually do when I start a Tripped Up column: I emailed some industry sources and started a Google Doc to organize my thoughts.

The notes became a rabbit hole , expanding with news coverage of STA’s collapse, a list of potential interview subjects, email addresses for international press offices and lengthy financial documents. From the chicken scratch, one truth emerged: Anyone attempting to recoup funds from an out-of-business company will likely confront uphill battles, tall orders and every other cliché in the book.

“In general, when a company goes into bankruptcy, basically it’s the vultures picking over the bones,” said Ira Rheingold, the executive director of the National Association of Consumer Advocates, a Washington, D.C.-based nonprofit. “The last people who will get a piece of those bones are going to be the unsecured creditors: the consumers.”

Formerly a major travel agency for youth and student trips, STA Travel filed for bankruptcy in August after a crippling flurry of pandemic-related cancellations; it was the first major travel agency to fall because of the pandemic. Although STA’s Instagram account has been dormant for more than two months, the comments live on as a record of unanswered questions and in-limbo refunds: “I have a student that is needing an update on her refund status and there is literally no way to reach anyone,” wrote one user. “I wonder how many people got robbed of their hard-saved holiday money,” lamented another.

From the start, your case felt like a maze of sharp corners and dead ends. First I visited the STA Travel website: shut down. Then I emailed the customer service agent you had corresponded with: bounceback. When I reached out to the press office of Diethelm Keller Group, STA’s former parent company that is based in Switzerland, and I got the following statement back: “As STA Travel Holding AG is in insolvency proceedings, Diethelm Keller Group is not in a position to provide further support or information.”

I contacted the Arizona Attorney General’s office after discovering one address for STA in Arizona — possibly a franchise — but was told by a spokeswoman that all consumer complaints are confidential.

I considered calling British Airways, but decided against it; after all, the airline had already canceled your tickets and refunded your money (to STA). Customers hoping to cancel active reservations might have luck by appealing directly to the travel company in question, but anyone waiting for an in-process refund from an intermediary like STA probably would not.

I also thought about what would happen if you were to file a complaint with the Department of Transportation’s Office of Aviation Consumer Protection, but decided that the particulars of your situation would almost certainly translate into more wasted time. There are simply too many layers of gray areas: Only one of your flight legs was canceled by the airline, you purchased tickets from a third-party seller and your refund had already ostensibly been approved.

Travel insurance wouldn’t have necessarily been a magic bullet, either, said Jennifer Fitzgerald, the co-founder and chief executive of Policygenius , an online insurance marketplace. Even when policies do cover the financial default of a travel supplier, they come with loads of caveats, restrictions and conditions.

“Not every travel insurance policy includes financial default protection, and not every provider will be covered,” said Ms. Fitzgerald. “For example, third-party sellers, like travel agencies, will tend not to qualify as travel suppliers, so travel insurance financial default protection won’t cover them.”

I got about 10 pages into a 90-page bankruptcy document outlining the liquidity ratio of STA’s New Zealand arm before (to use another cliché) going back to square one: the credit card company.

Some credit cards include financial insolvency protection (designed to help cardholders when a travel merchant goes bankrupt) in trip cancellation insurance. Others, including the Chase Sapphire Reserve card you used, exclude financial insolvency protection from insurance, handling it through standard disputes channels instead.

In an emailed statement, a spokeswoman for JPMorgan Chase said, “A cardmember can submit a dispute as a result of merchant financial insolvency, which we review on a case-by-case basis.”

The Fair Credit Billing Act, a federal law enacted to protect consumers from unfair credit billing practices, doesn’t have a specific carve-out for a merchant’s financial insolvency, but it does consider “charges for goods and services you didn’t accept or that weren’t delivered as agreed” one of several types of billing errors that consumers have the right to dispute . And although every credit card dispute hinges on the particulars, this is the easiest, most actionable move for lone consumers battling a company that has all but evaporated.

You might wonder, as I did, whether things are more complicated because you’re an American citizen trying to get a refund from an insolvent Swiss company for a canceled British flight. But so long as the consumer’s account with the credit card issuer (a bank, most likely) is based in the United States, and credit is issued to a United States resident, the transaction is covered by the billing error rules of the F.C.B.A.

To protect your rights under the F.C.B.A. in the Before Times, you would have had 60 days from the statement with the billing error to dispute the charge. But these times are hardly normal. That’s why a representative at JPMorgan Chase — citing “your atypical situation with this merchant” — issued you a full refund.

My quest unearthed other tips: Even if you’re filing a dispute through a credit card’s online channels, be sure to also submit the dispute in writing, via snail-mail, to the address the card issuer specifies for billing errors (a condition of the F.C.B.A.). The Federal Trade Commission has a good sample letter online. If you’re not making headway, file a complaint with the Consumer Financial Protection Bureau, which has jurisdiction over the country’s largest banks.

One final word of advice — and one final cliché — from Mr. Rheingold: “It’s about the squeaky wheel, right? Putting something out on social media: ‘Can you believe what this company did to me?’ Or saying, ‘I’ve been a cardmember for the last 20 years and I’m getting rid of it from now.’ That’s not legal advice — that’s just practical. That’s when you get your money back.”

Sarah Firshein is a Brooklyn-based writer. If you need advice about a best-laid travel plan that went awry, send an email to [email protected] .

Follow New York Times Travel on Instagram , Twitter and Facebook . And sign up for our weekly Travel Dispatch newsletter to receive expert tips on traveling smarter and inspiration for your next vacation.

STA Travel: Young Kiwis thousands of dollars out-of-pocket after travel agent insolvency

Watch: STA Travel collapse costs Kiwi holidaymakers tens of thousands in un-refunded bookings. Credits: Video - Newshub; Image - Getty

The collapse of a travel agency popularised for its low-cost flights and adventure tours has left hundreds of Kiwi travellers out-of-pocket and desperately seeking refunds.

New Zealanders eagerly anticipating the trip of a lifetime are now only awaiting answers as thousands of dollars hang in the balance. STA Travel - a popular choice among students for its competitive rates - collapsed earlier this year after declaring insolvency amid the ongoing COVID-19 pandemic. 

Now, the former company is facing an ever-increasing list of creditors hoping for the return of their hard-earned cash. Despite early promises that devastated customers would be refunded the cost of their dream holiday, many are resigned to the fact they may never see their savings again. It's estimated around $690 million of Kiwis' money is locked up with overseas travel and tourism suppliers. 

More from Newshub

The company's collapse is a crushing blow for struggling students, young couples and homeowner hopefuls, many of whom cannot afford to lose thousands of dollars.

"Our trip was cancelled and we have lost $6000 towards a house," 21-year-old student Morgan McLiver-Grant told Newshub. McLiver-Grant and her 22-year-old partner had booked a dream trip to Hawaii as a treat while saving for their first home.

She says STA Travel had promised the couple a refund for the holiday in March - but they never received it.

"It is really disappointing seeing pretty much our life savings being stolen from us when we were promised a refund," she said. "Our money will most likely never be seen again."

The agency was officially  placed under voluntary administration in August, appointing Deloitte heavyweights Colin Owens and David Webb as responsible for STA Travel's staff, customers and suppliers.

According to the agency's website , an urgent assessment of the company's financial position has been undertaken, determining the viability of recapitalisation or an asset realisation strategy to recoup funds to pay customers and creditors. A Deloitte spokesperson told Newshub that a watershed meeting, to be held at the end of September, will ultimately decide the future of the worldwide STA Travel Group - with one of the options being liquidation.

However, unsecured creditors - customers who are owed refunds - will be the last to be paid if any money does become available.

"Creditors are anyone that can show they owed money by an insolvent business. Creditors are ranked, from secured creditors (like banks with mortgages) to unsecured creditors (customers owed refunds)," Consumer NZ chief executive Jon Duffy told Newshub.  

"As money becomes available, creditors are paid according to their rank. Unfortunately unsecured creditors are paid last."

He confirmed Consumer NZ has been inundated with complaints and questions from outraged STA Travel customers, with many claiming they never received the refunds or credit that had been promised to them.

"They feel misled," he told Newshub.

The agency's website - which has been replaced with an insolvency notice  - says: "Due to the current circumstances we are not currently in a position to offer any cash refunds [or] honour any credit for cancelled trips."

'Absolutely heartbroken'

A recent graduate and North Shore Hospital nurse is "absolutely heartbroken" after postponing her dream trip to work throughout Auckland's COVID-19 outbreak cost her more than $6000. 

When the deadly coronavirus found a foothold in New Zealand, the 22-year-old - on the assurance of STA Travel - decided to reschedule her trip to Cuba and Peru.

"I chose to stay and work throughout the COVID-19 [outbreak]," she told Newshub. 

Believing she would be able to take her trip - initially scheduled for March and April - at a later date, the young nurse continued to work throughout the outbreak. Yet when STA Travel suddenly announced their insolvency, she says customers were left in the dark.

"They made no effort at all to inform me of the situation. I did a quick Google search and found out what had happened," she said.

She says customers were referred by the Deloitte administrators to an online form declaring their status as an unsecured creditor - but the process was confusing and full of legal jargon.

Deloitte also recommended customers to contact the tour companies and airlines they had booked with. The company's insolvency notice similarly advises customers to contact their airline, hotel or travel operator to discuss the possibility of having the payments refunded.

However, many companies say their hands are tied. In the 22-year-old's case, both Latam Airlines and tour company G Adventures said they couldn't issue refunds to her directly as she had booked through STA Travel, a third-party.

Now, she says it's clear any chance of a refund, credit or compensation is "very unlikely".

"I feel absolutely heartbroken that this has happened, I don’t understand how this is legal. It took a very long time for me to save for that trip," she told Newshub. "I feel pretty hopeless at the moment."

'Daylight robbery'

Auckland University student Maria, who had purchased plane tickets with Singapore Air via STA Travel, said the agency assured her a refund would be processed within six months after the flights were cancelled due to ongoing travel restrictions amid the pandemic. 

Maria says she and her husband last had contact with the agent in early June, and only found out about the insolvency this week. 

After contacting Singapore Airlines, the carrier advised the couple they had already refunded the cost of their flights back to STA Travel on June 12. They say they never received the money.

"This is daylight robbery. We are so shocked. My husband and I just had a baby and are on a single income. We heavily relied on this refund to help us get through my maternity leave," Maria told Newshub.

"The whole situation is a shambles. People have been robbed of their hard-earned money with no prospects of having it back."

The administrators told Maria to complete the creditor claim form, but advised her in the email that it's currently "unknown" whether refunds are even possible.

Recent Victoria University graduate Liana Cook Auckram, 25, claims she was also told she would receive credit for her six-week trip to Egypt, Jordan and Turkey, worth around $8000.

"STA Travel told me my credit was sitting directly with the operators after I was declined a refund," she told Newshub.

"My airlines and tour companies have [since] confirmed that no money was handed over to them from STA Travel, despite what my agent told me."

Travel reimbursement scheme unhelpful

A new travel scheme designed to pay travel agents a percentage of the cash refunds they are able to recoup is also unhelpful, according to STA Travel customers.

Announced last Tuesday by Kris Faafoi, the Minister of Commerce and Consumer Affairs, the scheme aims to help travel agents with getting money owed by travel suppliers back to their customers. Agencies will be paid 7.5 percent of the value of cash refunds and 5 percent of the value of credits secured on behalf of consumers. 

"This will mean, for example, that if an agent recoups $10,000 in a cash refund on cancelled travel, the customer gets that money back and the agent will receive $750. If it’s a credit for the $10,000 cancelled travel, the customer gets the credit and the agent receives $500," Faafoi explained.

However, the new scheme does not apply to companies that are insolvent.

Speaking to Newshub, the 22-year-old nurse says an extension to the scheme to include STA Travel customers is her last hope at receiving a refund or credit towards her trip.

"[We] arguably need the financial support much more than others, who are able to rely on their travel agencies to process the refunds for them. We are left with no one to contact about getting refunded, and are left thousands of dollars out of pocket," she said.

She and Auckram agree it appears younger Kiwis have been unfairly and disproportionately impacted by the insolvency, due to STA Travel predominantly targeting students.

"The STA Travel community was one mainly composed of young travellers and students. I believe we are being [ignored] because we are young and the majority are working entry-level jobs," the nurse said.

Auckram says she feels "deceived" by the agency. 

"Younger people do not understand the legality around refunds and flight credits. Losing $8000 is financially devastating."

In a statement to Newshub, Deloitte confirmed approximately 200 creditors attended an STA Travel meeting on September 3. 

"The administrators' priority continues to be to secure data and information and continue their investigations with a view to understanding what is possible to help affected parties," said a spokesperson, adding that a report will be published for affected parties in mid-late September.

"In addition to securing data and reconciling STA booking information, the administrators are exploring options under various Government support schemes, with a view to identifying further support, if any, that can be made available to affected parties.

"The administrators confirm that current claims received for all companies across the STA Travel Group, which includes STA Travel (NZ) Ltd, IEP and NNS, total more than $7 million with this number growing as a result of more parties contacting the administrators."

In an email obtained by Newshub, the administrators indicated that the possibility of customers ever receiving their refunds was unlikely.

"At this stage it is unknown whether there will be any ability for creditors refunds/credits to be repaid."

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• DESTINATIONS

STA Travel Holding files for bankruptcy

BANGKOK, 21 August 2020: Despite a history that traces back to a company founded by two Australian backpackers in 1979, STA Travel in Switzerland filed for insolvency on Wednesday a move that could ultimately impact on more than 200 offices worldwide.

Parent company STA Travel Holding AG said in a statement: “The global magnitude of the pandemic crisis has brought the travel industry to a standstill, including STA Travel, a student and youth travel company.”

The statement confirmed that “STA Travel Holding AG is filing for insolvency in the next few days. An external administrator will take over and determine next steps.”

It noted that “over recent months, the company took decisive measures to secure the business beyond Covid-19. However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.”

While the parent company STA Travel Holding AG in Switzerland is affected, local day-to-day operations by STA Travel may continue in 200 offices worldwide that make up the group’s network. Many of them are joint ventures or franchises which would allow them to continue trading locally. Reliable sources said the franchise fee was around EUR3,000 per location.

Travel executives told TTR Weekly they were shocked by the news claiming STA Travel performed well financially up until this year. Australia and New Zealand were top supply markets for STA Travel, mainly driving bookings for students, gap year and budget travellers heading for Europe and the UK. Other offices, such as Singapore and Thailand, reported strong sales. STA Travel is also an authorised IATA agent.  

However, due to the global impact from the Covid-19 pandemic  STA Travel offices in Asia reduced services or closed making staff redundant or asking them to work from home. STA Travel Thailand confirmed it has only one office location in Bangkok … ” but we still operate via online channels.” The STA Travel network worldwide employs around 2,000 staff.

Launched as Student Travel Australia in the 1970s and later renamed Student Travel Association, it rebranded under Diethelm & Keller ownership in 2009 to ‘Start the Adventure Travel’.

STA Travel faced major setbacks in 2020. In April, the company was hit with AUD14 million in penalties over misleading adverts about its multiflex pass product. The complaint was filed by the Australian Competition and Consumer Commission.

In May, STA Travel faced a potential class-action case over voucher schemes that “significantly disadvantage customers” who suffered from trip cancellations as a result of Covid-19.

The travel company belongs to Diethelm Keller Holdings headquartered in Switzerland that owns five travel units; STA Travel, Diethelm Travel, Globetrotter (50%), Explorer Fernreisen and Travellers Autobarn.

In Switzerland, STA Travel (formerly SSR Reisen) operates eight travel agencies in German-speaking Switzerland and five branches in French-speaking Switzerland, according to the Swiss travel portal About Travel.

STA Travel Group is led by CEO Ivan Walter who joined the company in April 2019 replacing  Reinhard Kotzaurek. Walter worked for Kuoni for 12 years and was CEO of GTA Travel from 2013 to 2018.

(Source: STA Travel Holding AG statement)

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Yes this is absolutely crazy this company has been sitting on checks that United Airlines refunded to them 2 months ago and they have yet to credit my credit card. I followed up regularly with calls, emails, always excuses. I will definitely file a lawsuit if I do not get credited to my card.

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STA Travel is “reviewing its position” after its parent company, STA Holdings, announced it was filing for administration.

It is unclear what will happen to the travel agent, which has 52 shops across the UK, most of which are currently closed.

“Following the decision to place STA Holdings, the parent company of STA Travel, into administration each division’s Country Manager and leadership team is now reviewing its own position,” STA Travel said in a statement.

”Further information will be confirmed as soon as this is finalised.“

STA Travel Holdings, part of the Swiss Diethelm Keller Group, said its insolvency is a result of the coronavirus pandemic.

”It has brought the travel industry to a standstill, including STA Travel,“ the company said in a statement.

”Over recent months, the company took decisive measures to secure the business beyond Covid-19. However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.

“As a consequence, STA Travel Holding AG, is filing for insolvency. In the next few days, an external administrator will take over and determine next steps.”

It’s unclear what options STA Travel in the UK might have, the parent company has suggested its subsidiaries may be able to keep operating.

“While the parent company STA Travel Holding AG in Switzerland is affected, local day-to-day operations by STA Travel may continue around the world,” continued the statement.

“STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances.“

It comes after the UK’s largest independent travel agency chain, Hays Travel, announced it would be forced to cut nearly 900 jobs as a result of the pandemic and resulting travel restrictions.

The owners, John and Irene Hays, said the slump in business caused by the government’s sudden warning against travel to Spain, as well as the changes to the furlough scheme, left them with no choice.

“We are devastated that after all of our efforts and the huge investment we’ve made we now face losing some of our valued employees through no fault of their own,” the couple said in a statement.

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Home » News » STA Travel files for insolvency

STA Travel files for insolvency

The global pandemic has signalled the end for another travel company, with STA Travel unable to pay its bills.

The youth travel advisor has filed for insolvency, advising in a statement that an external administrator will be taking over in the next few days to determine the next steps.

While the parent company STA Travel Holding AG in Switzerland is affected, the company advised local day-to-day operations by STA Travel may continue around the world.

“The global magnitude of the pandemic crisis has brought the travel industry to a standstill, including STA Travel, a student and youth travel company,” the company said.

“Over recent months, the company took decisive measures to secure the business beyond COVID-19.

“However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.

“STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances.”

In may, STA Travel was named in a potential class action over voucher schemes that “significantly disadvantage customers” who suffered from trip cancellations as a result of COVID-19.

In April, the company was also hit with $14 million in penalties over misleading ads about its multiflex pass product .

STA Travel is not the first company to collapse under the pressure of the global pandemic.

Virgin Australia entered voluntary administration in April, but is expected to be bought by Bain Capital, with the second creditors meeting scheduled for 4 September.

Cruise and Maritime Voyages and Air Mauritius have also entered into administration.

Featured image source: iStock/jax10289

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• Best Time to Visit Novosibirsk
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Weather and Seasons in Novosibirsk

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Best Time To Visit Novosibirsk

Novosibirsk has a typical continental climate with snowy, dry winters and warm, temperate summers.

• Winter: November to early March. Extremely cold with temperature dropping down to -20 degree Celsius.
• Spring: March and April. No precipitation and a pleasant climate. Temperatures during the day reach up to 20 degree Celsius.
• Summer: May, June and July: Typically, a wet season with heavy rainfall. The temperatures remain within the range of 25 to 30 degree Celsius. July is the wettest month of the year.
• Fall: September and October: High humidity, unpredictable temperatures with ground frosts.

The best time to visit Novosibirsk is between May to September.

• 20℉ 0℉

Highest temperature in Novosibirsk is recorded as 89.6℉ in June.

Lowest temperature in Novosibirsk is recorded as -34.6℉ in December.

Most humid month in Novosibirsk is November.

Least humid month in Novosibirsk is May.

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A traveler's guide to Novosibirsk, the unofficial capital of Siberia

Trans-Siberian heritage

Residents of Novosibirsk love trains and are proud of the fact that their city played a significant role in the history of the grand Trans-Siberian railway, which spans the breadth of Russia. The railway is such a part of Novosibirsk identity that it is even depicted on the city’s emblem, along with the bridge that crosses the Ob river and two Siberian sables standing on their hind legs.  

In the city, there are as many as five monuments to trains, and an open-air locomotive museum is located in the vicinity of the train station Seyatel’. The museum has more than 100 steam locomotives, diesel locomotives and carriages, reflecting the history of rail transportation in Russia from pre-revolutionary times to the present day. Wondering around the stationary trains and comparing your height with the diameter of the gigantic iron wheels of the first steam locomotives is all very well, but why not climb inside the carriages and see how the nobility once traveled across Russia in pre-revolutionary times? These tours will however need to be booked in advance. The museum opens from 11:00 until 17:00 every day except Mondays. 

Novosibirsk spans both sides of the river Ob. In the early twentieth century, the border of two different timezones passed right through the city which led to a strange situation- morning on the east bank started one hour earlier than on the west bank! The two-kilometer covered metro bridge that crosses the river is considered the longest in the world. Due to the fluctuations in temperature across the year (on average +30 °C to -30 °C), during the summer the metro bridge expands, and in the winter it contracts by half a meter. To counter these effects, the bridge’s supports are equipped with special rollers that allow it to move.   

The cultural center of Siberia

The repertoire of the theatre can be viewed on its official website . The theatre season runs from September to July, and comprises mainly classical performances, like the ballet “The Nutcracker” by Tchaikovsky, Borodin’s opera “Prince Igor” and Verdi’s “La Traviata”.  

The large Siberian sea and ligers

Weekends are best spent at the Novosibirsk zoo . The zoo is known for breeding big cats, although surrounded by controversy, hosts a successful crossing of a tiger and lion, which of course would not otherwise breed in wildlife. Ligers, or exotic cubs of an African lion and Bengal tigress, feel quite comfortable in the Siberian climate and even produce offspring. The zoo is open to visitors year-round, seven days a week, and even has its own free mobile app, Zoo Nsk .

Every year at the beginning of January, the festival of snow culture takes place bringing together artists from across Russia and around the world to participate in a snow sculpting competition. The tradition started in 2000 inspired by the snow festival in Sapporo, Novosibirsk’s twin-city.

Siberian Silicon Valley

Despite the fact that Akademgorodok was built half a century ago in the middle of the uninhabited Siberian taiga, architecturally it was ahead of its time. No trees were destroyed for its construction, and houses were built right in the middle of the forest. A man walking through the woods would seemingly stumble upon these structures. At that time, no one had built anything similar in the world and ecovillages only became fashionable much later.

For residents of the Novosibirsk Akademgorodok is a different world. When you step out the bus or car, you are immediately on one of the hiking paths through the forest, between the scientific buildings and clubs. On a walk through Akademgorodok, it is possible to unexpectedly encounter art-like objects handmade by residents of the city which have been erected as monuments and some monuments fixed up by city authorities. For example, the monument to the laboratory mice, which knits a strand of DNA on to some needles, can be found in the square alongside the Institute of Cytology and Genetics. In Akademgorodok there are many cafes and restaurants, in which it is possible to rest after a long walk. Grab a coffee and go to eat at Traveler’s Coffee , or eat lunch at the grille and bar People’s or Clover .

Winters in the Akademgorodok are slightly colder than in the city, so wrap up. Spring and summer are usually wetter, so waterproof boots are recommended. In the summer the Ob sea provides respite from the heat, so do not forget your swimsuit to go for a dip.

Memento Mori

Among the exhibits of the museum is one dedicated to world funeral culture — hearses, memorial jewellery from the hair of the deceased, samples from a specific photo-genre of  "post mortem", a collection of funeral wear from the Victorian era, deathmasks, statues and monuments. There’s also an impressive collection of coffins. One of them, resembling a fish, was manufactured on a special visit to Novosibirsk by a designer coffin-maker from Africa, Eric Adjetey Anang, who specializes in the production of unusual coffins.

Surprisingly, the crematorium itself does not look at all gloomy in appearance and definitely does not look like infernal scenes from movies, or like crematoriums of other cities that gravitate towards gloomy temple aesthetics. The Novosibirsk crematorium is decorated in “cheerful” orange tones and is surrounded by a park with a children’s playground nearby. A visit to the museum then leaves you with mixed feelings. 

Novosibirsk underground

Tourists from all over the world go down into the Moscow metro to take a ride and a few selfies in the most famous underground museum. The Novosibirsk metro is also quite a museum in itself — it has 13 stations, the most beautiful of which is Gagarinskaya, Sibirskaya and Rechnoy Vokzal.

The ultramodern Gagarinskaya station is like a real cosmos underground. Its technologically themed design includes marble walls with metallic elements, dark blue backlighting and portraits of Yuri Gagarin. The Sibirskaya station looks like an underground treasure trove, decorated by Altai masters craftsmen with mosaics of precious Siberian stones. The Rechnoy Vokzal station is framed with ten glowing stained glass windows depicting the largest cities of Siberia, including Novosibirsk itself, Omsk, Barnaul and others. The platform resembles a big ship sailing on the Ob, from which ancient Siberian cities are visible through its windows.  

How to get there

The easiest way to get to Novosibirsk is by plane with Aeroflot or Novosibirsk airline S7 with one-way tickets from Moscow costing from 200-250 USD. If you decide to take from the train from Moscow, you’ll have to travel approximately a third of the Trans-Siberian Railway. That’s 3,300 kilometers over almost a three-day journey. 

Where to stay

There are many great hotels in Novosibirsk. Amongst the best include a four-star Doubletree hotel by Hilton , which is located near Lenin Square (per room from $200). After renovations and repairs, the congress-hotel Novosibirsk has improved (per room from $100) and is located across from the train station. Less expensive but of a similar standard is the four-star River Park hotel near Rechnoy Vokzal metro station, which costs $80 per night.

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Novosibirsk tourist information and tourism, (novosibirsk, siberia, russia), novosibirsk tourist information and tourism: top sights, more novosibirsk information / fast facts and orientation.

• Country: Russia (Russian Federation)
• Location: Novosibirsk Oblast region / Southern Siberia
• Status: city / capital of Siberia
• Area: approximately 193 square miles / 500 square kilometres
• Population: approximately 1.5 million
• Language: Russian
• Currency: Russian Ruble (RUR)
• Time zone: UTC / GMT +3
• Country dialing code: +7
• Telephone area code: 383
• Average daily Novosibirsk January temperature: -14°C / 7°F
• Average daily Novosibirsk July temperature: 25°C / 77°F

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