Holiday rescue as airline goes bust

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And hundreds more UK tourists, due to be flown out on Friday by Majorca-based LTE International, were able to take up their holidays as planned after replacement flights were found for them.

UK holiday company Cosmos said about 350 of its holidaymakers due to travel to Tenerife on Friday with LTE would instead fly out with UK holiday airline Monarch.

Cosmos added that about 350 Britons due to return from Tenerife to the UK on Friday with LTE were now flying back to Manchester airport with Monarch.

Thomas Cook also arranged packages using LTE. The company said passengers on four flights on Friday - two to Tenerife and two returning from Tenerife - had been switched to Thomas Cook Airlines' services.

A Thomas Cook spokesman added: "We are currently working to re-protect the remaining flights affected by LTE's closure and will inform customers of any changes to their flights as soon as possible."

The Cosmos spokeswoman, who was also speaking for flight-only operator Avro, said: "Passengers due to depart with LTE in the forthcoming weeks will be contacted in due course as soon as alternative flight arrangements have been made.

"Due to our own ATOL (Air Travel Organisers' Licensing) protection and Abta (travel organisation) membership all of our customers are assured of being provided with alternative flight arrangements (albeit with some delays). Where this will not be possible they will receive a full refund."

LTE, which included Norwich among its UK-departing airports, said on its website: "We wish to inform you that due to the financial situation of the company, which makes it difficult to meet the operational expenses in the next days, we have had to suspend our charter and scheduled operations.

"LTE is doing everything to minimise the impact of this suspension of services on its clients and providers. After 20 years operating with maximum dedication to our clients it just was not possible to avoid this situation given world events lately."