Thomas Cook Updates
Thomas Cook Updates
Update 21st September – Tour operator Thomas Cook has approached the government in an attempt to plug a gap in its funding.
The travel company could fall into administration this weekend unless it finds £200m in extra funds needed to secure its future.
But BBC business editor Simon Jack says if holidaymakers are hoping the government will save the day, they may be disappointed.
A collapse would leave 150,000 UK holidaymakers stranded. Continue reading HERE
Update 20th September 21.57 – The Sun runs with the headline – GET HOME NOW Thomas Cook holidaymakers given just 24 hours to get home as firm gives up hope of private rescue.
THOUSANDS of Thomas Cook holidaymakers could have just 24 hours to get home or face being stranded abroad as the Brit tour operator goes bust.
The UK’s oldest travel agent is reportedly close to abandoning hope of a private rescue deal with fears it could collapse by Sunday. Continue reading HERE
Update 20th September – Last Minute Talks to stave off Collapse
Thomas Cook is holding last-minute talks to stave off a collapse that would trigger the biggest UK peacetime repatriation, with 150,000 people currently on holidays overseas with the travel company.
Britain’s oldest package holiday company, founded in 1841, has held emergency talks to sell its Nordic airline and tour operating divisions in an attempt to raise money. If a £200m hole in its finances is not plugged, Thomas Cook could collapse as early as this weekend,
The company’s collapse would put 20,000 jobs at risk, including about 9,000 in the UK. The Civil Aviation Authority, the government-backed regulator, would be forced to pick up the estimated £600m cost of bringing the 150,000 people home.
19th September – Thomas Cook trying to secure Rescue Deal.
Thomas Cook has said it is “focused on completing” a rescue deal amid reports that some lenders could vote against the terms of the agreement.
The troubled travel firm is understood to be in last minute negotiations with bondholders to approve a takeover by Chinese firm Fosun Tourism.
The deal needs the backing of three quarters of bondholders to succeed.
Thomas Cook wants to delay a meeting with them to give it more time to negotiate, the Financial Times said.
“We announced on 28 August that we have reached substantial agreement with Fosun and our creditors regarding key commercial terms of the recapitalisation of Thomas Cook.
“We remain focused on completing the transaction,” the travel firm said in a statement.
The aviation watchdog, the Civil Aviation Authority (CAA) refused to comment directly on Thomas Cook.
“We are in regular contact with all large ATOL holders and constantly monitor company performance. We do not comment on the financial situation of the individual businesses we regulate,” it said in a statement.
Should I be worried about my holiday?
If a travel company with an Atol ceases trading, the scheme protects customers who had booked holidays with the firm – making sure they don’t get stranded abroad or end up out of pocket..
Thomas Cook is an ATOL-protected business.
Protection under the ATOL – or Air Travel Organiser’s Licence – scheme means UK travellers on an air package holidays do not lose their money or become stranded abroad if a travel agent collapses.
It also covers many charter flights and means that, if the operator collapses while people are away, they can finish their holiday and be flown home at no extra cost.
If the business collapses before they go away, the scheme will provide a replacement holiday of equal value, or a refund.
When flights are booked on their own, or when people book flights and accommodation separately, the ATOL scheme does not usually come into effect. However, the ATOL scheme does now cover more custom-built holidays than it used to.
If a holiday is ATOL-protected it will be clearly marked with a certificate on holiday documents. The scheme is run by the UK Civil Aviation Authority and is backed by the UK government.
However this doesn’t apply in the case of people booking flights and accommodation separately.
If you are not covered by the Atol scheme, you should also contact your credit card company or travel insurer. If you have travel insurance, check your policy for the phrase “airline failure”.
Read the full story from the BBC HERE