Thomas Cook has collapsed after last ditch talks with lenders fell through over the weekend, prompting a repatriation exercise aimed at bringing more than 150,000 British holidaymakers home.
In total the company has about 600,000 customers abroad, and the collapse of the group puts 22,000 jobs at risk worldwide, including 9,000 in the UK. It also marks the end of the company that pioneered the package holiday.
Passengers due to depart from a UK airport with Thomas Cook Airlines are advised not to travel to a UK airport as the flight will not be operating. All Thomas Cook bookings, including flights and holidays, have now been cancelled. All shops are closed.
Dozens of empty planes are already being sent overseas by the Civil Aviation Authority (CAA) to bring back British tourists free of charge in the largest ever peacetime repatriation, dubbed Operation Matterhorn, dwarfing the 110,000 brought back after the failure of Monarch Airlines in 2017.
Customers can visit the CAA's special Thomas Cook website or ring 0300 303 2800 in the UK or +44 1753 330 330 from abroad.
The Department for Transport (DfT) said: 'The Government and the UK CAA aim to fly people as close as possible to their booked return date – so customers are being strongly advised not to cut short their holiday or go to the airport without checking the website for information about their return journey.
'The UK CAA is also contacting hotels accommodating Thomas Cook customers, who have booked as part of a package, to tell them that the cost of their accommodation will also be covered by the Government, through the Air Travel Trust Fund/ATOL cover.
'All Thomas Cook customers wherever they are around the world, will be brought back to the UK on special free flights or booked onto another scheduled airline at no extra cost.
'For flights back to the UK, it doesn’t matter whether customers are ATOL protected or not, or what their nationality is. Everyone on a Thomas Cook holiday with a return flight to the UK within the two weeks will be brought home.'
No bailout
The BBC has reported that the Government was asked for a bailout of £250m, but refused to pay.
Transport secretary, Grant Shapps, said: 'I fear it would have kept them afloat for a very short period of time and then we would have been back in the position of needing to repatriate people in any case.'
It is understood the company had large debts and being so high street focused made it difficult for the compnay to survive in today's market.
Mr Shapps added: '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. So, there are bound to be problems and delays. Please try to be understanding with the staff who are trying to assist in what is likely to be a very difficult time for them as well.'
Civil Aviation Authority
In a statement the CAA said: 'The Government and the Civil Aviation Authority are now working together to do everything we can to support passengers due to fly back to the UK with Thomas Cook between 23 September 2019 and 6 October 2019.
'Depending on your location, this will be either on CAA-operated flights or by using existing flights with other airlines.
'This repatriation is hugely complex and we are working around the clock to support passengers.'
Thomas Cook statement:
The company made an application to the High Court for a compulsory liquidation before opening of business today (23 September).
An order has been granted to appoint the Official Receiver as the liquidator of the Company.
A number of other Thomas Cook Group companies have also entered into compulsory liquidation, with members of either AlixPartners UK LLP or KPMG LLP (depending on the company) being appointed as Special Managers in respect of the relevant Group companies.
AlixPartners UK LLP will now work very closely with the CAA in the UK, to effect the repatriation of all UK customers impacted by this announcement.
Peter Fankhauser, chief executive of Thomas Cook commented: 'We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook’s future for its employees, customers and suppliers.
'Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable.
'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.'
Legal opinion:
Rebecca Thornley-Gibson, partner at city law firm DMH Stallard, said: 'Devastatingly for the industry the Thomas Cook Group disappeared from the travel landscape at 2am this morning.
'There are, and will continue to be. multiple impacts from the loss of 9000 jobs in the UK in Thomas Cook.
'The impact on a short-term basis will be mitigated by the rights of employees to claim payments including arrears of pay, statutory redundancy, holiday and notice payments from the Insolvency Service. If these are paid promptly employees will at least have some time to catch their financial breath as they seek alternative roles elsewhere.
'A very sad day for Thomas Cook, the travel industry and all those ancillary supply services that will now face uncertainty due to their future loss of revenue.'
For details of the insolvency and to find out more about your rights as a passenger or employee click here.
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