>>If they book AC via travel agent in Ireland, direct via phone or online, what will happen if AC folds as regards refunds?<<
Here's a FAQ about bankrupt airline ticket refunds in Canada:
http://www.cbc.ca/news/indepth/backg...0_refunds.html
It looks like in most cases people who purchase tickets join a long line of unsecured creditors. They may get some money back or if lucky, another airline may honor the tickets on a standby basis.
It is possible that the government will continue to support endless political airline bailouts. Canadian Airlines unions gambled and won on this a couple of years ago. Surely they wouldn't let Air Canada, the flag carrier and a former Crown corporation, go under? Or would they?
I wouldn't worry until they start using the phrase "business as usual"...