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The Association of British Travel Agents (Abta) has urged the government to do more to protect British air passengers from the hassle and cost that can result from an airline or tour operator going bust.

Some 4,500 UK passengers recently saw the value of travelling with an operator that is protected by the Air Travel Organisers' Licensing scheme when Zoom Airlines went bust, leaving passengers in the United States and Canada with no way to get home.

Abta spokesman Sean Tipton said there are schemes the government can use to prevent this from happening.

One initiative that has reportedly been successful in the Netherlands involves the government contributing a small amount of money to a public fund every time a travel booking is made.

'Every time a travel company went out of business, including airlines, that money would be used to give customers their money back,' Mr Tipton explained.

The Abta spokesman said that a scheme such as this would increase consumer protection and give travellers peace of mind.

He also pointed out that it could go some way to addressing the fact that individual airlines are not obliged to pay for financial protection, and many do not, while tour operators are forced to provide cover for their customers.

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