JOBS have been lost in York and North Yorkshire after a "cash crisis" led a travel firm to stop trading.

Harrogate-based air travel firm Cyberes Plc went into administration on Wednesday, along with its subsidiary Corporate Travel International Limited, (CTI), which has an office in Skeldergate, York.

Twenty jobs have been lost in Harrogate and 80 jobs have been axed at CTI, although it is not yet known how many jobs have been lost in York.

Administrators Steve Ellis and Ian Stokoe, of PricewaterhouseCoopers, are now talking to potential buyers in a bid to sell the two firms. A skeleton staff of about ten has been kept on at the company's headquarters in North Park Road, Harrogate, while CTI has kept 40 people on to keep the business going until a sale can be secured.

Cyberes is an air travel wholesaler, supplying automated booking and ticketing facilities to independent travel agents. It had a turnover of £15 million.

Hull-based Corporate Travel International Limited operates as a travel agency to the corporate, retail and internet travel markets. It had an annual turnover of £35 million and merged with Cyberes at the start of this year.

Mr Ellis said: "The Cyberes business had not attracted sufficient customers to generate positive cash-flow leading to a cash crisis at the business, despite Corporate Travel International Limited trading profitably.

"When investors would not provide further investment, the group had insufficient cash to meet its monthly payment to IATA and its licence to issue airline tickets has been withdrawn.

"Consequently, the group has effectively ceased to trade. We have maintained a core workforce to hold the business together whilst we talk to potential buyers in the short term."

A spokeswoman at Pricewaterhouse Coopers confirmed there had been job losses at the York office. She said a skeleton staff had been kept on at the branch to deal with customer enquiries although they were no longer allowed to take bookings.

The news is expected to cause problems for customers who have booked their summer holidays with the companies.

The Civil Aviation Authority said customers abroad at the moment would be able to fly home as planned. Six airlines have guaranteed to honour flight-only bookings even where tickets have not been issued.

These airlines are Emirates, KLM Royal Dutch Airlines, Malaysia Airlines, Northwest Airlines, Royal Jordanian Airlines and Singapore Airlines Limited.

Customers who are due to travel on any other airline and have not received their tickets will not be able to travel, but they will be able to claim a refund from the CAA.

Worried customers should contact the CAA on 020 7453 6350 or visit www.atol.org.uk. Business customers should contact the company on the telephone number they normally use.

Are you a CTI or Cyberes customer whose holiday has been cancelled? Please contact reporter Charlotte Percival on 01904 653051 ext 315 or email charlotte.percival@ycp.co.uk.

Updated: 09:52 Friday, June 25, 2004