Operator collapses with 200 abroad

Specialist operator Lidana has had its ATOL bond of more than £108,000 called after ceasing trading

The failure follows on swiftly after the XL Leisure Group and was partly caused by the majority of its flights being provided by XL Airways, ABTA said.

There are around 200 holidaymakers abroad, about half who flew out on packages covered by the ATOL scheme following the XL failure.

They will be able to continue with their holiday arrangements.

There are also nearly 1,000 travellers with forward bookings.

The Civil Aviation Authority has been called in to protect holidaymakers booked with the company which traded as Respect Holidays and Wildwind Holidays.

The company had an authorisation for 3,568 passengers and had provided a bond of £108,623, which has been called.

The operator is the fifth to fail in the past two weeks following Seguro, XL Leisure Group, K&S and Throb Holidays.

It ran inclusive holidays to Gran Canaria, Tenerife, Ibiza, Sitges and Mykonos.

The company also sold a number of accommodation-only holiday arrangements for which there is no legal obligation to provide financial protection, ABTA said.

The CAA is making arrangements for holidaymakers abroad to complete their holidays and fly back to the UK as planned.

But those with advance bookings will not be able to travel and need to make a claim for a refund of their lost holiday.

With permission from Travelmole