Holiday company Flight Options, which was the parent company of Kiss Flights went into administration yesterday, leaving an estimated 13,000 people abroad and around 60,000 who have yet to travel with their holiday plans in jeopardy. What does this mean to customers?

Am I protected?

Kiss Flights was part of the Civil Aviation Authority's (CAA) Atol scheme, which kicks in when a travel company fails, so people who have bookings with the company will be able to claim a full refund for the Atol-protected elements of their holidays from the CAA.

To determine whether they are Atol-protected or not, customers should check that they booked a flight with Flight Options/Kiss Flights by checking the invoice and/or receipt received at the time the booking was made and paid for.

But only those who paid for flights, accommodation and hire car with one credit card transaction, are protected under the Atol scheme. Those who made three separate payments are not. General advice about refunds under the Atol scheme is available from the CAA website or by calling 0844 571 7262 begin_of_the_skype_highlighting              0844 571 7262      end_of_the_skype_highlighting.

I booked a holiday with Kiss Flights but am yet to leave. What now?

If your flight leaves the UK before 6pm on Wednesday 18 August 2010, the CAA says it will operate as planned, and passengers should go to the airport and check-in as normal.

I am due to fly after 6pm on Wednesday 18th August 2010. What should I do?

Your tickets will not be valid so don't got to the airport as planned. Customers who booked through Flight Options / Kiss Flights should make a claim for a refund from the CAA and seek advice from their travel agents about alternative travel arrangements.

What happens if I only booked flights through Kiss?

The company sold only a very small number of package holidays, so most customers will have booked flights only. Atol generally protects the flight element of a holiday, so follow the advice above, depending on when you are (or were) due to fly. Accommodation booked independently with other firms is not affected by the failure

Is there another way to get my money back if I'm not protected by the Atol scheme?

Yes. If you booked by credit card or Visa debit card you can make a claim via your card company. A part of credit card law, introduced in the 1970s and known as section 75, means credit card companies must take responsibility for refunding customers if the goods they bought don't turn up or the supplier goes bust. The total cost of the goods you are paying for must be more than £100 and less than £30,000 for the law to apply.

Anyone who made their purchase with a Visa debit card is covered by its Chargeback scheme, which offers similar protection to section 75. To make a claim customers must contact their card issuer, which then contacts the company's payment-processing bank to reclaim the money. This means that even if a company goes into liquidation it is possible to reclaim money, as the claim is made against a bank not the company.

Sometimes card issuers misunderstand the section 75 and Chargeback rules and refuse a claim. Anyone in this situation should make sure they know their rights and argue their case. If all else fails contact the Financial Ombudsman.

I am already on a holiday booked through Kiss. What should I do?

The CAA estimates that around 13,000 people are currently overseas and it claims all of them will be able to complete their holidays and return to the UK. Customers should therefore arrive at the airport in time to check-in for their flights home as normal.

Anyone concerned they may not get to fly should ring the CAA's overseas helpline a couple of days before they are due to come back: 00 44 (0)161 444 5811 begin_of_the_skype_highlighting              00 44 (0)161 444 5811      end_of_the_skype_highlighting.