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• 10,000 customers with bookings face anxious wait
• Passengers should contact the CAA to check their position
Thousands of customers with online travel agency Freedom Direct Holidays were today trying to find out if their bookings would be honoured after the collapse of the firm
The Newcastle-based company, which specialised in trips to the Mediterranean, Turkey and the Canary Islands, and also organised some cruises, ceased trading yesterday blaming the economic slowdown for its collapse.
Around 200 customers are on holiday at the moment, and an estimated 9,000-10,000 have breaks booked later this year. These were booked through several Freedom Direct websites including Freedomdirect.co.uk, Freedom-direct.co.uk, Snowdeals.co.uk, Hotsunholidays.co.uk and Holidaysyoulike.co.uk.
Freedom Direct's chief executive, Martin Jones, said he was "gutted" by the collapse of the firm, which has resulted in the loss of 108 jobs. "Many of our staff had been with us for many years," he said. "They were as upset as I am that the business was coming to an end. It was a very difficult day, but I have had nothing but support from them. There were no recriminations from them."
In a statement on its main website, Jones apologised to customers and thanked those who had booked holidays with the firm over the past 12 years.
He said passengers who had booked package holidays with the firm would be financially protected by the Atol scheme, which returns stranded passengers and provides refunds to those who are yet to travel.
However, those who used the site to book flights or hotels or package holidays with other tour operators will not be covered by Freedom Direct's Atol licence. A spokesman for the Civil Aviation Authority (CAA), which runs the Atol scheme, said it was not clear how many customers this applied to. However, he said they would still be able to go on holiday if Freedom Direct had paid its bills.
"Those who are travelling in the next few days should have received all their documents. If they have already got these and confirmation of their trip they need to contact the airline and the hotel to check that the holiday is still OK," he said.
The CAA said customers who were already on holiday would be able to continue their trip and fly home as planned. If they do find they are charged again for any arrangements, it said they should apply for compensation under the Atol scheme.
Passengers who booked package holidays and have yet to travel are advised to call the CAA on 020 7379 7311. Those who booked a flight or accommodation with another Atol-bonded company should call 01243 621500.
Those not covered by Atol should speak to their bank or credit card provider to see if they are entitled to a refund. Under the Consumer Credit Act, credit card customers should be covered for purchases worth between £100 and £30,000 when a company goes out of business. Some debit card customers may also be able to obtain refunds under the chargeback scheme.
Freedom Direct is the latest in a series of travel firms which have collapsed in the past 12 months. Pressures on household budgets have persuaded many families to holiday in the UK, while rising fuel costs have caused problems for airlines.
Last autumn, thousands of passengers were hit by the collapse of Zoom and XL, and more travel firms could fail as households tighten their belts.
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