Thousands hit by tour firm collapse

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The Newcastle-based company ceased trading on Thursday after running into financial difficulties.

Freedom Direct had financial cover as it was a full member of travel organisation Abta.

In addition, all holidays booked until the end of last month were covered by the Air Travel Organisers' Licensing (ATOL) system run by the Civil Aviation Authority (CAA).

The company specialised in trips to the Mediterranean, Turkey and the Canary Islands and also organised some cruises.

A CAA spokesman said: "We understand there are about 200 Freedom Direct holidaymakers currently abroad and between 9,000 and 10,000 with advanced bookings."

All those covered by the company's ATOL bond should be able to continue their holidays and be flown home.

Similarly, those who have booked future trips will be financially covered.

In a message on the company's website, Freedom Direct's chief executive Martin Jones advised affected customers to contact the CAA or Abta.

He said: "We would like to apologise for any inconvenience caused to our customers and to thank the many people who have booked holidays with us over the last 12 years."