The Civil Aviation Authority has begun a formal investigation into Blue Skies Travel (UK), which went into voluntary liquidation late last year.
The CAA confirmed it has started a formal investigation into ‘potential breaches of the ATOL regulations’ following complaints by a number of customers who booked with the company.
Customers had accused the agency of taking money but not confirming travel reservations.
Some say they were never issued with an ATOL, despite claims by Blue Skies Travel (UK) that it was acting as an agent for ATOL-holder Major Travel.
Blue Skies Travel (UK) Ltd, which traded as Bright Skies Travel and Fly Vacations, is run by Clive Allard, the former boss of Travellers Cities which collapsed in 2012 leaving agents out of pocket.
It is not in any way connected to Cardiff-based Blue Skies Travel, part of Hays Travel.
