Hundreds of British holidaymakers were stranded in Turkey today after another tour operator went bust.
K&S Travel is the second holiday company to close in four days after the collapse of XL Leisure Group left tens of thousands stuck.
The closure of K&S yesterday meant more than 500 holidays, worth thousands of pounds, were cancelled.
The Civil Aviation Authority was today arranging emergency flights home.
A CAA spokesman said all the K&S tourists - most of whom were in the resort of Bodrum - would get full refunds through the Atol protection scheme.
K&S, which was based in Dalston and also traded as Travel Turkey, organised package tours to the country and chartered flights with Onur Air from Gatwick and Stansted.
The CAA is rechartering planes from Onur to minimise disruption and said tourists should be able to fly home on their original departure date.
Two other travel companies have collapsed in recent weeks, XL on Friday and Zoom Airlines last month. Both blamed the credit crunch and soaring fuel prices.
About 63,000 holidaymakers still did not know how they would get home today after XL's collapse.
The CAA is mounting a rescue operation with more than 22,000 passengers already allocated seats on repatriation flights.
Customers who booked XL packages will get a refund but those with flights only are not covered by Atol.
CAA director of consumer protection Richard Jackson said the rescue operation was a 'massive logistical operation.'
Many families say they have simply been abandoned to fight their own battles. Hundreds have been forced to sleep on airport floors.
As the full scale of the holiday crisis became clear, it also emerged that:
Some 10,000 people not covered by compensation schemes are being forced to fork out sums running into thousands;
Others are being hit with £1,000 surcharges on accommodation because XL has not paid hoteliers;
Families stuck on Greek islands have had to take ferries and wait for hours at airports;
Taxpayers and future tourists could end up paying some of the vast costs of the collapse.
Last night Sir Richard Branson, who runs Virgin Atlantic, criticised the massive rescue 'airlift' being organised by the Government's Civil Aviation Authority.
He said XL's own aircraft, which have effectively been impounded by the firm's administrator, should be used in the operation.
'It does not make sense for those aircraft to be lying idle at UK airports,' said Sir Richard.
'There is enormous pressure in the industry to help with the rescue, which we are happy to do, but it should not be like this in future.'
