Thomas Cook is one of the world's older travel company. The British travel firm collapsed on Monday, 23rd September 2019. This collapse resulted in leaving thousands of workers out of jobs.
Thomas Cook is a huge company that operates in two segments: As a tour operator and as an airline. It was founded in the year 1841 as Thomas Cook & Son. The Company ceased its trading operations on Monday and left around 21,000 employees out of jobs worldwide. Around 6,00,000 passengers were left stranded in a foreign country. The governments are trying to make arrangements for a safe journey home for the travelers left stranded abroad. The company operated in around 16 countries.
Peter Fankhauser, The Chief Executive of Thomas Cook said: "it is a matter of regret that the company has collapsed because of its failure to secure a package from its lenders". He added, "I would like to apologize to our customers, and thousands of employees, suppliers, and partners of Thomas Cook who have been supportive of us for many years."
Thomas Cook was struggling to pay back its debt of £1.2bn. The company was all set when it had ended up getting a deal of £900m with its major shareholder, China's Fosun. But, The company had been searching for an Investor who could bring in £200m into Thomas Cook Company so that the company is able to keep itself from collapsing but unfortunately no such deal could be made. The plan was "no longer applicable because of the compulsory liquidation" of Thomas Cook, Fosun said in a statement. The British government rejected the company's proposal for a bailout (Thomas Cook asked for £150m in funding) as it would have not been a good long term deal according to them. The British PM Boris Johnson said in a statement, "That is a lot of taxpayers’ money and sets up a moral hazard in the case of future difficulties that companies face commercially.”
The company had to get a compulsory liquidation. The CAA (United Kingdom's Civil Aviation Authority) has said that the government and the regulator have a complete fleet of planes ready to go on a rescue mission to bring back the British customers who were left stranded overseas this Monday morning due to the cancellation of all the flights of Thomas Cook airline. The UK government launched the largest ever peacetime repatriation. The customers of the company have been informed to they will get the information of their return Chartered flights that will be organized by the British Government through a website - thomascook.caa.co.uk
The British government has even involved airlines such as British Airways, Virgin Atlantic, etc.
Some people were being held at a hotel in Tunisia that was hosting Thomas Cook Customers when the hotel staff asked for additional payments. So, the regulator informed the hotels hosting the Company's customers all over the world that the payments will be made by the British government.
The collapse has had major consequences as it has created chaos in various cities of the world such as Goa, Cuba, Greece, and Cancun. The long term consequences of this collapse could adversely affect the travel and tourism sector of holiday destinations such as Spain or Turkey. Various hotels and tour operators in these countries that work with Thomas Cook exclusively will be affected badly. It will leave the suppliers of the fuel in losses. It is not just the employees and the suppliers of Thomas cook that have been affected. Other businesses will also suffer as a result of this collapse. As the company was involved in operating an airline, holiday packages, and hotels. Thomas Cook had various hotel outsourcing deals with companies abroad, that have been affected after this collapse. One such company is Webjet, an Australian travel firm that signed a deal with Thomas Cook, resulting in taking over of around 3,000 contacts of hotels. Other companies that had dealt with Thomas Cook include Expedia and On The Beach.
Hundreds of small business in various cities of the world profited being partners of Thomas Cook. They have been affected because of this liquidation. The company collapsed after operating for more than a hundred years. Its employees had a shock with the revelation and were saddened to leave their jobs. One of the cabin crew, Kia Dawn Hayward tweeted, "Love my job so much, don’t want it to end.
Thank you for making my dream job come true #ThomasCook, you will always be my first ever airline and the last in my Sunny Heart."
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