bobdee,
yes this would be pretty much standard practice for the merchant Account provider (the bank that looks after the incoming credit card monies).
It isn't the first time an airline/travel comapny has gone bust, and they are weary of companies using advance booking monies as company credit lines.
Ryan/Easy get away with it OK.
I did hear that the CEO of planesatation was taking a £2500 a day consultancy fee- I wonder upto when was he being paid?