According to UK’s Civil Aviation Authority (CAA), the British tour company has ceased operations with immediate effect. This was necessary as negotiation talks to rescue the company failed. According to reports, more than 600,000 people have been affected with over 250,000 tourists stranded. Thomas Cook is the largest oldest transport company in the world.
Chief Executive Officer, Peter Fankhauser noted that the company’s collapse was a matter of profound regret. Peter also apologized to over 30,000 of the company’s employees and also millions of the firm’s customers worldwide for this unfortunate situation.
Travel expect Simon Calder who spoke to BBC news earlier revealed that Thomas Cook was not ready for the 21st century. “It was using a model that was great for the second half of the 20th century where people would obediently go into their local travel agency and book a package holiday. Now, everybody can pretend they are a travel agent. They’ve got access to all the airline seats, hotel beds, car rentals in the world and they can put things together themselves. Thomas Cook simply wasn’t differentiating enough” Simon said.
Breaking: British tourist transport company, Thomas Cook goes bankrupt as rescue talks failedhttps://t.co/c1zASz1N1d
— Kelvin Mawunya Ashong (@Mawunya_) September 23, 2019
Somewhere August this year, Thomas Cook secured for it self a rescue deal worth 900million euros led by Chinese firm Fosun who is Thomas Cooks largest shareholder but a sharp demand from its lending bank to raise an additional 200million euros in contingency funding had put the whole deal in doubt. Fosun said it was very disappointed following Thomas Cook’s sudden collapse. The firm also expressed its deepest regret for those affected across the globe.
The holiday company spent lots of time on Sunday, the 22nd of September in talks with lenders trying to secure additional funding to salvage the situation but was to no avail. The company blamed its problems on many factors including the recent Brixit deal, political unrest in holiday destinations such as Turkey and other several factors as well.
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