On September 23, 2019, the world’s oldest travel company, Thomas Cook, announced its bankruptcy after negotiations to save the firm failed.
„Despite considerable efforts, discussions between the various parties participating in the group and potential new sources of funding did not lead to any agreement. The Board of Directors has therefore concluded that it has no choice but to take steps to enter into compulsory liquidation with immediate effect,” the company’s statement explained.
At the time of bankruptcy, 9,000 people worked for the company, managing the vacations of approximately 600,000 tourists.
The aviation authority announced that Thomas Cook has entered special administration and that all flights and bookings have been canceled.
Peter Fankhauser, CEO of Thomas Cook, stated that he deeply regrets the bankruptcy and offered his apologies to millions of customers and thousands of employees.
The government and the CAA launched the largest repatriation operation in the UK, named „Operation Matterhorn.”
According to The Guardian, British Airways and easyJet aircraft will be used in the repatriation operations, which will take place until October 6, 2019, and could cost around 150 million GBP.
Foreign Secretary Dominic Raab assured those on vacation on Sunday that they would not be left stranded abroad and that the British government would handle their repatriation.
The meeting between the travel company’s executives and shareholder representatives (the largest shareholder being the Chinese conglomerate Fosun), held for 11 hours at a law firm’s headquarters in central London, yielded no results.
Thomas Cook customers are now anxiously waiting to return home. Tour operators usually pay hotels 90 days after guests depart, so hoteliers are now worried they will not see their money.
Thomas Cook (1808-1892) is considered the „father of tourism” in the history of organized tourism because he was the first to design an integrated product.
Thomas Cook has over 20 million tourists and 25,000 travel agents in 17 countries, having its own travel publications as well as the airline Thomas Cook Airlines.
Source: Digi 24
Frequently Asked Questions
What was Operation Matterhorn?
It was the UK’s largest peacetime repatriation effort, launched to bring home approximately 600,000 tourists stranded abroad following the company’s collapse.
Why did Thomas Cook go bankrupt?
The company entered compulsory liquidation after failing to secure a rescue deal and necessary funding during last-minute negotiations with shareholders and lenders.
What is Thomas Cook’s legacy in the travel industry?
Founded by the “father of tourism,” Thomas Cook pioneered the concept of organized travel and integrated holiday packages, serving over 20 million customers annually at its peak.