The
next 24 hours are now crucial to the firm’s survival and it has approached the
government for help after giving up hopes of a private sector deal.
The
Times has said the government is unlikely to intervene amid concerns about the
longer-term viability of the company.
The
board of the troubled tour operator will meet tomorrow but a source close to
the talks has said it was ‘more likely than not’ that it would enter
administration.
Another
reason for the urgency is that Thomas Cook’s Air Travel Organiser’s Licence
(Atol) is up for renewal at the start of next month.
It is
illegal to operate without it. The Department for Transport said: ‘We do not
speculate on the financial situation of individual businesses.’
There are currently 600,000 Thomas Cook
customers on holiday, of which 150,000 are from the UK. There are also 300,000
Germans abroad with the operator.
If Thomas Cook does collapse, package holidays
are Atol protected, meaning holidaymakers would not face any extra cost and
there would be refunds for planned holidays that don’t happen.
But people who bought flights through the firm
would not be protected although refunds could be secured through travel
insurance. The repatriation effort of Operation
Matterhorn could take two weeks and cost
around £600 million – which would be covered by the taxpayer. John McDonnell,
the shadow chancellor, told the Times: ‘It’s critical the government intervenes
urgently to protect British holidaymakers, who through no fault of their own
are facing this nightmare.’
Passengers from Antalya, Turkey, to Glasgow
were among those catching what could be some of Thomas Cook’s last flights. A
fault with the plane prevented it from taking off, meaning they were stranded
at the airport overnight.
They could be seen slumped on suitcases hoping
they would be able to make it home before the end of the weekend. Thomas Cook
serves 19 million customers a year in 16 different countries.
It was set up by a cabinet maker and former
Baptist preacher, Thomas Cook, and now runs more than 100 aircraft and 199
own-brand hotels.
Source: Metro.co.uk
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