- Thomas Cook is crippled by debt of 1.7 billion pounds which is too big to compensate.
- The oldest travel firm in World, Thomas Cook saw final collapse on Monday, leaving hundreds and thousands of holidaymakers across the globe and sparking the largest peacetime compensation effort in British history.
The oldest travel firm in World, Thomas Cook saw final collapse on Monday, leaving hundreds and thousands of holidaymakers across the globe and sparking the largest peacetime compensation effort in British history.
Peter Fankhauser, Chief Executive of the company said that it is a matter of regret that the company had gone out of business after it failed to secure a rescue package from its lenders.
As per the UK’s Civil Aviation Authority (CAA) said Thomas Cook has now stopped trading and the regulator and government would work together to bring more than 150,000 British customers home over the next two weeks.
Main Reasons for the Collapse of the Travel Giant are-
- Thomas Cook is crippled by debt of 1.7 billion pounds which is too big to compensate.
- The company is hit by online competition a changing travel market and geopolitical events that can upend its summer season.
Fankhauser said in a statement released in the early hours of Monday morning,“I would like to apologize to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years,”
“It is a matter of profound regret to me and the rest of the board that we were not successful.”
All the Thomas Cook flights are now canceled due to the scale of disruption is so huge said the government and the aviation regulator.
This whole saga marks the end of one of the Britain’s oldest companies which started out in 1841 running local rail excursions before it survived two world wars to pioneer package holidays first in Europe and then across the globe.
Source- Telegraph
The current rooster of the company has hotels, resorts, and airlines for 19 million people a year in 16 countries. It has more than 6,00,000 people across the globe which has forced the governments and insurance companies to coordinate a huge rescue operation.
All the Thomas Cook planes after landing were diverted away from the normal stands and being deserted as soon as they landed as shown by the pictures posted on Social Media.
The huge corporate collapse has the potential to create chaos across the world, with all the holidaymakers stuck in hotels that have not been paid in locations as far as Goa, Gambia, and Greece.
In the long run, it would hit the big economies such as Spain and Turkey, leave the fuel suppliers out of pocket and force the shutting down of travel agents across the British high streets.
The government and the aviation regulator have to work together to bring Britons home. In Germany, one of the biggest customer markets for Thomas Cook, the insurance companies will take charge.
This is a sad ending to the glorious story of one of the biggest and oldest travel companies in the world. We hope they make it through.
