PLANS are under way to help thousands of British tourists affected by the collapse of an online tour operator and travel agent.

The Newcastle-based company, Freedom Direct Holidays, ceased trading on Thursday after running into cash difficulties. But the firm had financial cover as it was a full member of travel organisation Association of the British Travel Agents (Abta).

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).

But holidaymakers said last night they were still unsure whether they would be able to get away.

Glynnis Moore, 51, of Geneva Crescent, Darlington, and her partner, paid almost £1,600 for a package holiday to Turkey in six weeks.

She said: “I am still trying to find out if they are going to honour the holiday.”

The company specialised in trips to the Mediterranean, Turkey and the Canary Islands and a number of cruises.

It is not known how many UK holidaymakers who booked with the company are currently abroad and the CAA is working with the company today to help those affected.

All those covered by the firm’s Atol bond should be able to continue their holidays and be flown home.

Those who have booked future trips will also be financially covered.

Miss Moore’s holiday was booked through Thomas Cook, which said her trip should be safe.

Spokesman Nick Sandham said: “If they are travelling between now and the end of May they are going to be okay.

“They need to contact us so we can check we have received the payment. People should not assume that their holiday is cancelled.”

Abta said people would either be able to go on holiday as planned or get a refund.

Spokesman Sean Tipton said: “Whether they go ahead or not depends on the booking they have. Everyone will either get their holiday or have their money back.

“The company has done everything correctly to protect their customers.”

In a message on the company’s website, Freedom Direct 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.”