The world’s oldest travel firm Thomas Cook collapsed Monday, leaving hundreds of thousands of people stranded around the globe.
After 178 years of extensive business Thomas Cook had now ceased trading,as said by The UK’s Civil Aviation Authority (CAA).
Thomas Cook said in a statement, it was unable to reach an agreement between its stakeholders and proposed money providers, adding that “it had no choice but to take steps to enter into compulsory liquidation with immediate effect.”
“Thomas Cook has ceased trading so all Thomas Cook flights are now canceled,” the travel company confirmed.
UK Prime Minister Boris Johnson pledged to get
stranded British travellers home and revealed that the government had rejected
a request from Thomas Cook for a bailout of about 150 million pounds ($187.1
million) because doing so would have set up a “moral hazard”.
“It is a very difficult situation and obviously our thoughts are very much with the customers of Thomas Cook, the holiday makers who may now face difficulties getting home we will do our level best to get them home,” he briefed reporters on a plane as he headed to the UN General Assembly in New York.
The British
government has already asked the UK Civil Aviation Authority to launch a repatriation
programme over the next two weeks, from Monday to October 6, to bring Thomas
Cook customers back to the UK.
The Civil Aviation Authority has launched a special website, thomascook.caa.co.uk, where customers can find details and information on repatriation flights.
“Customers currently overseas should not travel to the airport until their flight back to the UK has been confirmed on the dedicated website,” the Civil Aviation Authority said.
Customers those not flying from Britain, alternative arrangements will have to be found. “Thomas Cook customers in the UK yet to travel should not go to the airport as all flights leaving the UK have been cancelled”,it said.
In Germany, a popular customer market for Thomas Cook, insurance companies will coordinate the response.
The firm ran hotels, resorts and airlines for 19 million travellers a year in 16 countries, generating revenue in 2018 of 9.6 billion pounds (R177 billion). It currently has 600 000 people abroad, including more than 150 000 British citizens.
Thomas Cook employs 21 000 people, founded in 1841 IT is the world’s oldest travel company,. The company has 1.7 billion pounds (R31 billion) of debt.
CEO of Thomas Cook Peter Fankhauser said in a statement, “I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years,” “This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world”,he added.
Thomas Cook bosses met lenders and creditors in London on Sunday to try to thrash out a last-ditch deal to keep the company afloat. They failed.
