By Antoine SanchezStaff Writer
Council Travel has fallen victim to the post-Sept. 11 economy; theinternational agency recently filed for Chapter 11 bankruptcyprotection.
The agency’s parent company, usitWORLD, filed for bankruptcyearlier this year because of financial troubles caused by Sept. 11,leading to Council Travel’s break down, said Nancy Kivlen, CouncilTravel’s regional vice president for the West Coast.
“We are still open for business and able to sell to and serviceour customers as we always have,” said Michael Burns, CouncilTravel’s regional vice president of marketing for the East Coast.”Customers should feel secure in coming into a Council Travel shop todo business; all of our airline partners are continuing to supportus, and they are all accepting tickets issued through CouncilTravel.”
Filing for bankruptcy protection under Chapter 11 allows thecompanies to reorganize their debts within 60-90 days by permittingthem to remain in business while providing jobs and simultaneouslycontributing to the country’s economy. This puts a stop to allcollection activities while they rehabilitate their business andnegotiate a payback to creditors.
According to Kivlen, STA Travel has put up a bid to purchaseCouncil Travel. A decision will be made by March 27.
Customers with a current International Student Identity Cardshould not be alarmed because Council Travel is still covering theinsurance associated with the card. Discounts and benefits linkedwith the card are also active, according to the agency’s Web site.
Council Travel was created in the 1980s and has been renting inAztec Center for about three years. The company focuses primarily onstudent, youth and budget travel markets. The company has 76 retailshops nationwide and more than 200 partner offices overseas.
Associated Students Executive Director Dan Cornthwaite said thebankruptcy will have no impact on Aztec Center’s economy.
A.S. does not anticipate Council Travel leaving the space in AztecCenter because that office is one of the most successful in thecountry, he said.
“The travel agency is paying their rent, and students, faculty andstaff are continuing to utilize the services offered,” Cornthwaitesaid.
Some students are apprehensive about the bankruptcy because theythink it could lead to Council Travel leaving campus.
“It’s somewhat shocking for me as a Council Travel customerbecause if they were to leave campus, it would definitely be aninconvenience for many students,” European studies senior CandyUrreola said.
“One would have to drive around San Diego to find a place withgood deals; however, I don’t understand how they could have gonebankrupt if they offer good prices, have a good reputation and arealways busy.”
Customers with questions about their travel arrangements shouldcontact their nearest Council Travel, or call 1-800-2COUNCIL. Studyabroad advisors and group leaders can call 1-888-5COUNCIL.
