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Airline faces fraud allegations

Published on 17 Mar 2010 under category: legal

An airline whose flights were grounded a week after its launch is facing corporate fraud allegations after concerns were raised over aircraft hire fees.

Varsity Express, which launched flights to Edinburgh from Oxford, is alleged to have not paid the fees.

The airline was established by 23-year-old Martin Halstead, dubbed Baby Branson, who has denied that either he or the company has committed fraud.

It is the second carrier launched by Mr Halstead after Alpha One, which was established in 2005 while he was still living with his parents.

Some passengers have been left stranded in the Scottish capital as a result of the suspension, unable to travel back home to Oxford.

According to the Scotsman, Mr Halstead's company owes up to £20,000 to Links Air, the business that owns the 18-seat aircraft used by Varsity Express.

Jon Ibbotson, Links Air's Owner, told the newspaper: "They have not paid bills and were in breach of contract - they failed to meet their obligations."

A Varsity Express statement confirmed that ticket sales have been "suspended until further notice".

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