Thomas Cook collapses triggering 22, 000 job losses
Thomas Cook has collapsed after final negotiations aimed at saving the 178-year-old holiday firm failed putting 22, 000 jobs at risk worldwide including 9, 000 in the UK.
The UK Civil Aviation Authority (CAA) said the tour operator has “ceased trading with immediate effect”, which triggered the biggest ever peacetime repartriation aimed at bringing more than 165, 000 British holidaymakers home, also 400, 000 European customers also affected
Peter Fankhauser, CEO of Thomas Cook, said the firm’s collapse was a “matter of profound regret”.
Transport Secretary Grant Shapps said the company’s collapse was “v ery sad news for staff and holidaymakers”.
Mr Shapps has announced that the government and CAA has hired dozens of charter planes to fly customers home free of charge and urged holidaymakers to be “understanding with staff” amid the enormous task of bringing people home.
The emergency operation codenamed Operation Matterhorn, will aim to bring home Britons currently on holiday with the firm.
All customers currently abroad with Thomas Cook who are booked to return to the UK over the next two weeks will be brought home “as close as possible” to their return date, according to the Department for Transport (DfT).
The DfT added that a “small number” of passengers may need to book their own flight home and reclaim the costs.
The UK CAA is contacting hotels accommodating Thomas Cook customers who have booked as part of a package, to tell them the cost of their accommodation will be covered by the government , through the Air Travel Trust Fund and Atol scheme.
Although Thomas Cook had secured a £900m rescue deal led by its largest shareholder Chinese firm Fosun in August 2019, lending banks demand to raise a further £200m in contingency funding had put the deal in doubt.
Thomas Cook has also asked the government for financial aid which was not forthcoming, with Foreign Secretary Dominic Raab saying the government did not “systematically step in” when businesses went under unless there was “a good strategic national interest”.
The firm operated 116 Boeing and Airbus in the UK across Europe.
Thomas Cook has blamed political unrest in holiday destinations such as Turkey, last summer’s prolonged heatwave and customers delaying booking holidays because of Brexit and fierce competition from online travel agents and low-cost airlines.
The Air Travel Organiser’s Licence Scheme ( Atol) will pay for your accommodation abroad, although you may have to move to a different hotel or apartment and also pay to have you brought home if the airline is no longer operating. The future holiday booking will also be refunded by the scheme.
But if you have booked a fight-only deal you will need to apply to your travel insurance company or credit card and debit card provider to seek a refund.
Although Thomas Cook now best known for its trips abroad, when cabinet-maker Thomas Cook founded the business in Leicestershire in 1841 it was for more local excursions. He harnessed the UK’s newly built railways to offer his first 12 mile trip from Leicester to Loughborough at the cost of a shilling per head ( around £3 in today’s money). In 1855, after having pioneered trips around the British Isles and to London’s Great Exhibition, Thomas Cook set his sights across the Channel to Paris where the International Exhibition was being held with the commercial tour linked to other European destinations was a huge success followed by several European , Middle East and American trips
The company flourished fuelled by the appetite of the growing middle classes to travel in style.
IN the 20th century Thomas Cook’s grandson added winter sports, motor car tours and commercial air travel to its offerings. At the end of 1920s Thomas Cook was sold for the first time when the grandsons unexpectedly sold the business to the Belgium owner of the Orient Express. When World War Two broke out, it was nationalised by the British government as part of British Railways to save it from the Nazi occupation. Thomas Cook was taken private in the 1970s and expanded its network of High Street Travel shops through a string of acquisitions. In1992, it was brought by Germany’s third largest bank, the Westdeutsche Landesbank. Thomas Cook’s airline business was founded in 1999. In 2001, another German company, C&N Touristic (AG) bought Thomas Cook and rebranded the whole business as Thomas Cook.
Thomas Cook UK Plc and associated entities have entered Compulsory Liquidation and are now under the control of the Official Receiver. Thomas Cook’s spot at Birmingham Airport is deserted this morning as customers get the message to stay away .
Thomas Cook has retained a dedicated following taking 19 million people from the UK and other countries on holiday each year. Thomas Cook Share fell from 186p to 3.05 per share. The directors were paid £21m over the 3 years and have not adapted to Internet.
Even the company’s competitors did not want to see Thomas Cook collapse of “an emotional and heritage point of view”.
All Thomas Cook holidays and flights are cancelled with immediate effect.
Special dedicated Uk civil aviation authority helpline Telephone number and website
Overseas customers +44 1753 330330
UK customers 0300 303 2800
www. thomascook.caa.co.uk