Budget Travel, the largest tour operator in the State, is to be wound up after the High Court this afternoon appointed a provisional liquidator to the company.
A total of 747 people are currently on holiday abroad with Budget Travel.
The company says it is working closely with the Commission for Aviation Regulation to ensure plans are put in place to enable all customers to return to Ireland with the minimum of inconvenience.
Budget Travel says it has a bond of €11.4m in cash lodged with the Commission which will be used to assist holidaymakers abroad and refund any deposits or bookings made with the company which can not now be honoured
For people who have booked holidays with Budget Travel, the company says it may be possible to arrange the same, or a similar holiday package with an alternative company.
Other customers will receive a full refund in due course from the Commission for Aviation Regulation.
In a statement this afternoon, Budget's managing director Eileen O'Sullivan said a dispute with the Commission for Aviation Regulation over the granting of licences for the coming year had brought financial challenges to a head.
The company was established in May 1975 and has a 30% share of the market. It has 17 outlets and employs 172 people.
Budget Travel began a restructuring process in August of this year when it closed 14 of its retail outlets and the loss of approximately 95 jobs.
A helpline has been established at Budget Travel to deal with queries from customers. The number is 01-6613122.
