World Tidings

Thomas cook, the Oldest Travel Firm Crumple, Leaving Tourists Stranded

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The oldest travel firm in the world, Thomas Cook, collapsed on Monday, leaving thousands of holidaymakers stranded around the globe.

The UK Civil Aviation Authority (CAA) informed Thomas Cook, “ceased trading with immediate effect.” The CAA was working on making arrangements so that over 150,000 British holidaymakers returned home.

Thomas Cook chief executive, Peter Fankhauser, said the collapse of the firm was a ‘matter of profound regret.’ He said the company entered into compulsory liquidation and apologized to ‘millions of customers, and thousands of employees.’

Outcome

Thomas Cook, the tour operators’ failure has put the worldwide risk for 22,000 jobs, and this includes 9000 in the UK. 

Tom Burridge, the BBC transport correspondent, said 16,000 holidaymakers booked to return on Monday. However, the authorities aim to get 14,000 at least at home on chartered flights.

The government has 45 chartered jets to bring home the customers, and they will be flying on Monday with other 64 routes in an undertaking dubbed ‘Operation Matterhorn.’ The fleet size will make it the fifth-largest airline in the UK temporarily.

Operators including EasyJet and Virgin have also given their aircraft, with jets coming from Malaysia. 

Who gets affected?

The firm, Thomas Cook, ran resorts, hotels, and airlines in 16 countries for 19 million travelers and the 2018 revenue was $12 billion around 9.6 billion pounds. It has abroad 600,000 people, and this includes 150,000 British citizens.

The firm ran hotels, resorts, and airlines for 19 million travelers a year in 16 countries, generating revenue in 2018 of 9.6 billion pounds ($12 billion). It currently has 600,000 people abroad, including more than 150,000 British citizens.

Thomas Cook was founded in 1841. The company has a debt of 1.7 billion pounds.

What happens to tourists?

The British government enquired about the UK Civil Aviation Authority to launch in the next two weeks, a repatriation program, to bring Thomas Cook customers back to the UK, from Monday to Oct. 6.

Disruption is inevitable agreed on the Civil Aviation Authority and confirmed thee endeavor to get people safely back home at the earliest possible dates.

An exclusive website, thomascook.caa.co.uk, is launched by the Civil Aviation Authority for the affected customers who are unable to find information and details of repatriation flights.

Advice to passengers:  The Civil Aviation Authority said, overseas customers should not travel to the airport as all the flights leaving the UK to stand canceled.

Peter Fankhauser, the Thomas Cook CEO Words: ‘I would like to apologize to our thousands of employees, millions of customers, suppliers and partners who supported us for many years,’ Thomas Cook CEO said. 

Reason to Collapse

The reasons are Thomas Cook was hurt by online rivals, high debt levels, and geopolitical uncertainty. Thomas Cook required 200 million pounds topping the package of 900 million pounds it had agreed to go through the winter months, but received less cash.

The request for surplus 200 million pounds toppled the rescue deal. The bosses of Thomas Cook met creditors and lenders in London on Sunday to thrash a last-ditch agreement so that the company stays afloat. But, they failed.

Transport Secretary Grant Shapps said ‘I fear if the 200 million pounds would have kept them afloat for a short period.’ ‘The large debts and High Street-focused business of the Company made it a weak candidate for survival, he said.

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