Thomas Cook (TCG.L), a major travel operator founded in 1841, ceased to trade on 23 September 2019.

Thomas Cook went into compulsory liquidation after months of trying to seal bailout cash from Chinese conglomerate Fosun as well as from a number of other firms.

As previously reported by The Telegraph, Thomas Cook survived two world wars, nationalisation, numerous takeovers, break-ups and re-organisations but it could not adapt its business model to disruptive technological innovations and consumer behaviour change, unlike its more tech-savvy or cost-effective competitors, such as TripAdvisor and discount airlines.

In a statement issued on Monday, Peter Fankhauser, Chief Executive of Thomas Cook, commented:

“It is a matter of profound regret to me and the rest of the board that we were not successful. I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years. Despite huge uncertainty over recent weeks, our teams continued to put customers first, showing why Thomas Cook is one of the best-loved brands in travel.

“Generations of customers entrusted their family holiday to Thomas Cook because our people kept our customers at the heart of the business and maintained our founder’s spirit of innovation.

“This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world.”

Thomas Cook’s collapse led to 150,000 UK holidaymakers stranded abroad and to “the biggest peacetime repatriation of British people”:

“Thomas Cook’s collapse is very sad news for staff and holidaymakers. The government and UK CAA is working round the clock to help people. Our contingency planning has helped acquire planes from across the world – some from as far away as Malaysia – and we have put hundreds of people in call centres and at airports. But the task is enormous, the biggest peacetime repatriation in UK history.”

 

– UK Transport Secretary, Grant Shapps

Immediately after the cancellation of all travel operator’s flights, Transport Secretary Grant Shapps announced that the government and UK Civil Aviation Authority (CAA) had hired dozens of charter planes to fly customers home free of charge. Hundreds of staff from many government departments and agencies, including the UK CAA, the Department for Transport (DfT) and the Foreign Office (FCO), will be deployed in call centres and at airports to help people.

Thomas Cook has 22,000 employees. The government intends to convene a cross-government taskforce to support employees, alongside local stakeholders. The taskforce, comprising the staff of the Department for Business, Energy and Industrial Strategy (BEIS), the Department for Work and Pensions (DWP) and other departments, will consider existing support schemes and will also monitor the impact on local businesses.

Source: MIB

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