Thomas Cook Collapses

[33kft]

The CEO of British travel firm Thomas Cook said it was a “deeply sad day” and apologised “to millions” after the cash-strapped travel company went into compulsory liquidation, leaving 600,000 holiday-makers stranded worldwide.

The UK Civil Aviation Authority has confirmed the tour operator, one of the oldest and largest in the world, had “ceased trading with immediate effect” after last-minute negotiations failed to save it.

An emergency operation codenamed Operation Matterhorn will aim to bring home about stranded 150,000 British tourists in what is believed to be the biggest peacetime repatriation operation in British history, the BBC reports.

Empty aircraft have already begun flying overseas to bring Thomas Cook customers home.

Tourists ‘held hostage’ overseas as travel operator goes bust

The CEO of British travel firm Thomas Cook said it was a “deeply sad day” and apologised “to millions” after the cash-strapped travel company went into compulsory liquidation, leaving 600,000 holiday-makers stranded worldwide.

www.news.com.au

 

[tomlee1986]

I have never traveled with this company before, I feel sorry for those that are impacted.. the staff, the tourists and the people who lost money from it.. I hope this situation can be rectified soon... and losses are minimized..

 

[cove]

It has caught Webjet for 27 million Euros in accounts receivable that would be very doubtful now. Webjet will be ok as they remain a very strong business.
I hope the executives pay back their bonuses.

 

[tomlee1986]

It has caught Webjet for 27 million Euros in accounts receivable that would be very doubtful now.
I hope the executives pay back their bonuses.

I think that is doubtful the executives will pay it back unless it is via a court order...

 

[Quickstatus]

This is where some spare A380 could be used for the repat.

MH?


Also never book the entire package through one provider

 

[mrsterryn]

I wonder what the ripples will be

 

[OZDUCK]

This is where some spare A380 could be used for the repat.

MH?

Good thought. Apparently a MH 380 has just arrived in the UK to be used for the repat. of stranded pax.

 

[Quickstatus]

Not a lot of ripples. Lots of unsecured creditors. TC will be financially refloated. Banks will own it, recapitalise it and make a profit. People will continue to pay for packages in advancement

And don’t blame it on Brexit..

 

[cove]

More of a tidal wave than a ripple I think.
Some hotels may not release stranded passengers until the accommodation is paid.
I still remember using Thomas Cook travellers cheques several decades ago.

 

[Quickstatus]

As the internet democratises the market, there is less and less need for a middle man like TC

I’m not sure hotels can physically prevent their guests leaving. The guests are not the financial party. TC is

 

[OZDUCK]

As the internet democratises the market, there is less and less need for a middle man like TC

I’m not sure hotels can physically prevent their guests leaving. The guests are not the financial party. TC is

As regards being held hostage. I guess that depends where you are ----

Thomas Cook customers say they were 'held hostage' at Tunisian hotel

Thomas Cook customers in Tunisia say a hotel is demanding extra fees before letting them leave.

www.bbc.com

 

[Deleted member]

I guess Mr Cook will be turning in his grave!

 

[amaroo]

Had no idea the name has been trading for around 180 years

 

[Cruiser Elite]

Businesses come and go but you always have to really feel for the battlers who scrimp and save every penny to make an annual or once in a long time holiday a reality

 

[Quickstatus]

I find it a tad unsavoury that the taxpayer has to bailout TC by chartering aircraft to repat the passengers. While an investor comes in later and buys the assets for a song.

 

[Denali]

How incredibly sad and stressful for the paying customer and employees. Im reading about people being tens of thousands in the hole for OS weddings ect.

 

[Quickstatus]

Paying for (and becoming an unsecured creditor) for entire package upfront is always risky

The travel insurance industry beancounters are probably not having a good time either

 

[Hvr]

I find it a tad unsavoury that the taxpayer has to bailout TC by chartering aircraft to repat the passengers. While an investor comes in later and buys the assets for a song.

But that's the way that right wing governments work. No rules or regulations to interfere with private enterprise running efficiently. When it all inevitably goes pear shaped then demand that the government bail out their customers so the next non-government enterprise can take over and make even more money or asset strip the enterprise without paying any debts.

Basically, socialise the losses and privatise the profits.

 

[amaroo]

But that's the way that right wing governments work. No rules or regulations to interfere with private enterprise running efficiently. When it all inevitably goes pear shaped then demand that the government bail out their customers so the next non-government enterprise can take over and make even more money or asset strip the enterprise without paying any debts.

Basically, socialise the losses and privatise the profits.

It's Tony's fault

 

[33kft]

I suspect the purpose of the rescue mission is less about where the dollars and cents go and more about a responsibility that governments have to citizens in the event of certain types of global strife.

ATOL cover would be part of that responsibility: About ATOL | UK Civil Aviation Authority