Holiday company collapses

A long-established tour operator specialising in holidays to Scandinavia has become the latest victim of the credit-crunch.

Scantours ceased trading earlier this week and holidaymakers who had booked flight-inclusive packages with the company are being advised to contact the Civil Aviation Authority (CAA) for refunds.

Holidaymakers who booked hotels, car hire or services other than flight-inclusive packages through Scantours should contact ABTA, which will arrange for refunds.

Scantours was also trading as Iceland Adventures, ScanMeridian and Summer Adventures. ABTA said the London-based company had ceased trading as it was unable to meet its liabilities.

The Civil Aviation Authority said today that Scantours' passengers holding reservations on scheduled flights would still be able to fly, but the Association warned that holidaymakers may be asked to re-pay for some or all of the cost of other elements booked through Scantours, such as accommodation and car hire.

If this is the case, holidaymakers should hold on to receipts and make a claim from the CAA when they return home. Claims cannot exceed the cost of the original package booked with Scantours and all claims to the CAA for refunds must be made by February 28 2011.

The CAA pointed out that it cannot refund travel insurance premiums, even if they were bought directly from the tour operator. It advises holidaymakers to contact their insurer for advice and it may be possible for the policy to be deferred or moved to an alternative trip if a claim has not been made.

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