Thomas Cook one of the oldest British Travel Companies marked its liquidation this Monday, The Company started it’s journey in 1841 running local rail trips before it survived two world wars to pioneer package holidays and mass tourism.
Peter Fankhauser, Thomas Cook’s chief executive, said the firm’s collapse was a “matter of profound regret, as the company entered compulsory liquidation, Mr. Fankhauser also apologized to the firm’s “millions of customers, and thousands of employees”
What Went Wrong?
- A rescue plan that would have seen 900M Pounds as new money pumped into the travel firm fell apart at the last moment, when lenders demanded that Thomas Cook find an extra 200M Pounds in financing to get through the winters. Those Negotiation’s failed and Thomas Cook’s CEO, Peter Fankhauser returned to the Company City of London’s Headquarters, and his team began the process to close down a firm that has been providing Holidays for 178 years.
- Thomas Cook has blamed a series of issues for its problems including political unrest in holiday destinations such as Turkey, last summer’s prolonged heat wave and customers delaying booking holidays because of Brexit.
- The low-cost aviation revolution and a series of corporate misadventures left Thomas Cook badly wounded in 2011. Although it made a recovery, the firm has been struggling compared with its huge rival Tui and the relative youngster Jet2.
What government is doing to help
The hardest-hit people are the 21,000 staff, More than 150,000 British holidaymakers who are currently abroad with Thomas Cook are relatively fortunate because the government has assured them that they will be brought back with a massive recovery operation called “Operation Matterhorn”.The government has chartered 45 jets to bring customers home and they will fly 64 routes today in an undertaking this operation. British Transport Minister Grant Shapps said the government had managed to “acquire planes from across the world” to get people home, and call centers had been established to answer travelers’ queries.
Up to one million people with forward bookings with Thomas Cook are in a less-favorable position.
While the vast majority will get their money refunded, that process could take months. In the meantime airfares and holiday prices will soar as other travel firms take advantage of the surge in demand.
