If I book a flight via the internet, say direct with an airline, am I protected financially if the company should go bust? Ken Chadwick, Birmingham

Sunday Times travel expert Richard Green responds: The short answer is probably not, although this is something of a minefield to figure through.

In general, you are not financially protected if you buy your flight direct from an airline. However you should be if you buy the ticket through an ATOL (Air Travel Organisers’ License), ABTA (Association of British Travel Agents), or AITO (Association of Independent Tour Operators) agent.

It’s also a good idea to pay by credit card, which often provides another degree of protection. And another fall back position is your insurance. Some travel insurers will cover you for the failure of an airline, but this won’t necessarily be as standard, so you’ll need to request this in your quote and policy.

However, if a flight is booked as part of a package, through any travel agent (via the Internet or not), then you will most likely be offered financial protection if things go wrong. Under the Package Travel Regulations, each package that includes a flight should be covered by an ATOL, which requires tour operators to provide a bond to the CAA (Civil Aviation Authority).

This ensures that funds are available to repatriate travelers in the event of the company going bust. You can check if your travel company is an ATOL holder at the CAA website.

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