Travel operator collapse stuns thousands of holidaymakers

Up to a thousand tourists currently holidaying in the Canary Islands were nearly left stranded as the travel operator with whom they booked their flights collapsed.

It was left to the Civil Aviation Authority (CAA) to foot the bill for their return flights through its Air Travel Organiser's Licensing agreement, which means that the British tourists can complete their holidays and come back to the UK at no extra cost.

Moreover, almost 40,000 people have had their festive flights cancelled due to the bankruptcy of Sale-based HCCT (Holidays), which also traded as CT2 and LOCO Flights.

The majority of the firm's sales were made through travel agents to customers in the north, with the majority of flights departing from Manchester, Leeds-Bradford and other airports in the Midlands.

A statement issued by the CAA said: "Passengers who were due to travel and had a flight booked with this company will be unable to travel. You will however be able to make a claim on the Atol bond.

"Passengers currently overseas should be able to continue their holidays as planned and fly home on their original flights."