If an airline goes bust, what protection does the traveller have...

[clam]

...in terms of a refund? Would one be relying on the airline paying out (or whoever) or one's own travel insurance?

Check it is ATOL bonded and that should give you a refund eventually. What you wouldn't automatically get a refund on, unless you booked a package holiday, is any car hire or accommodation you can't use as a result of not being able to fly or the difference between the fare you originally paid and what is available later. Some insurance or even a cc, if you booked or part paid over £100 using one, may cover the consequential costs but you need to look very carefully at t and c's.

So, can I assume that all the major (big-major) airlines are ATOL bonded? ANd how do I check?

It should say on their website, often at the bottom of the home page.

Check this site for your rights.

Take great care when you are booking flights directly that you have either insurance protection or use a credit card (for purchases over £100 I believe - but do check!!) and NOT a debit card!

Thanks all. Will use a credit card and hope for the best.