It is understood that several hundred passengers who booked with collapsed airline JetGreen Airways have been left stranded in Spain.
The Aviation Regulator, Bill Prasifka, said this afternoon that all passengers who booked with the airline would be fully covered by a bond placed with his office.
There has been no further comment from JetGreen Airways.
Earlier today, the airline announced that it had suspended its flights and ceased trading.
In a statement this afternoon, JetGreen advised passengers booked with them to make alternative arrangements.
JetGreen commenced flights from Dublin to Malaga and Alicante in Spain just last week.
The airline had planned to open more routes to other destinations in Europe and had been in negotiation with Aer Rianta for more slots at Dublin airport.
It had been offering some seats on its flights for as little as €1.
Travel agents body queries licencing
The president of The Irish Travel Agents Association Michael Doorley, has said that questions must be asked of the Commission for Aviation Regulation as to what investigations were carried out in advance of JetGreen receiving its licence.
JetGreen is the latest start-up airline to be swept aside by the intense competition between carriers in Europe.
Earlier this month, Edinburgh-based airline Duo, which had planned two routes from Shannon, also went out of business, while in February, the Cork-based JetMagic collapsed.