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Freedom Direct Holidays collapse hits holidaymakers

Thousands of British holidaymakers faced uncertainty after the collapse of Freedom Direct Holidays, an online tour operator and travel agent. The Newcastle-based company folded on Thursday, with 200 of its customers currently overseas and up to 10,000 advanced booked holidays yet to be taken. However, as it was a full member of Abta, Freedom Direct did have financial cover. This means that all holidays booked until the end of last month are covered by the Air Travel Organisers' Licensing (ATOL) system, which is run by the Civil Aviation Authority (CAA). Freedom Direct specialised in trips to the Mediterranean, Turkey and the Canary Islands, and cruises. The company's chief executive, Martin Jones, confirmed that holidaymakers who had booked packages would be fully protected. Mr Jones 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 past 12 years. 'There were a lot of tears. Many of our staff had been with us for many years. They were as upset as I am that the business was coming to an end. It was a very difficult day, but I have had nothing but support from them. There were no recriminations from them. ' Mr Jones went on to say that Freedom Direct had already paid airlines, hotels and other operators for outstanding holidays and that travellers would be able to go ahead with their bookings. He added that he was 'gutted' by the collapse of his business, which he attributed to the recession. A CAA spokesman later said: 'We understand there are about 200 Freedom Direct holidaymakers currently abroad and between 9,000 and 10,000 with advanced bookings. ' Peter Hutchinson, 56, of Hull, was a Freedom Direct customer due to travel to Egypt in two weeks with his wife. He said: 'The holiday cost us £1,400. I'm hoping we've enough time to re-arrange the trip and hopefully get our money back. ' The firm's 108 employees were given their notice yesterday, and the company's offices in the Gosforth area of Newcastle are already vacant.

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