ABTA and The Co-operative Travel have called on the government to take action following the collapse this week of Scottish airline Flyglobespan and its owner Globespan Group.

Chief executive Mark Tanzer said although many of the passengers booked with Flyglobespan were financially protected after the flights were sold as part of a package by sister operator Globespan, others who had booked flight only weren’t.

He urged the Department of Transport, which is currently reviewing the ATOL Scheme, and the European Commission to use this to rewrite the rules so all fliers are given the same protection.

Tanzer said: “Once more, a bankrupt airline has left customers stranded abroad and out of pocket.

“The government must take action so that airline customers are no longer treated as second-class citizens and have the same level of protection that tour operators have provided to their customers for more than 30 years.”

Tanzer’s comments were supported by The Co-operative Travel managing director Mike Greenacre, who said: “This is another reminder for the government – as if it were needed – that without a level playing field for travel providers, the consumer is the one taking all the risk.

“Holidaymakers who aren’t ATOL protected are paying for the lack of regulation right now. We at The Co-operative Travel called on the government to take action when XL collapsed last year, and still we have no resolution.

“How many more holidaymakers need to be stranded or left out of pocket before action is taken?”