Thomas Cook news - live: 150,000 British holidaymakers wait for repatriation after Boris Johnson refuses to bail collapsed firm out
Holiday giant's collapse triggers biggest ever peacetime repatriation
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Your support makes all the difference.Thomas Cook, the package holiday giant, has collapsed after last-ditch attempts to save the company failed.
The UK Civil Aviation Authority (CAA) said the tour operator has “ceased trading with immediate effect”, putting more than 20,000 jobs at risk worldwide and triggering the biggest ever peacetime repatriation.
More than 150,000 British holidaymakers need to be brought home, with the government and CAA hiring dozens of charter planes to fly customers home free of charge.
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Boris Johnson admitted he had refused the company's request for a £150m rescue package, insisting that doing so would create a "moral hazard".
If you missed it earlier today - this is what Peter Fankhauser, Thomas Cook’s CEO, had to say about the collapse.
More on the collapse’s effect on the travel industry:
Thomas Cook’s competitors look set to receive a boost from the company’s demise, according to the Press Association.
As of 10:30 am today, Tui has seen shares rise more than 6 per cent in the FTSE 100 Index and EasyJet has seen gains of 5 per cent in the FTSE 250 Index.
Meanwhile, shares in Ryanair have also risen by 2 per cent.
Thomas Cook shares were suspended overnight after the announcement that it had ceased trading.
Cyprus’ deputy minister of tourism has said up to 15,000 holidaymakers are stranded on the island after the collapse of Thomas Cook, Reuters reports.
Savvas Perdios, the government minister, said the collapse could see Cypriot hotels lose an estimated 50m euros (£44m) owed by the holiday company.
“I don’t think that it will be easy to recoup that money,” Mr Perdios said.
A lot of people on social media are pointing to Brexit as the cause of Thomas Cook’s collapse.
Although Brexit uncertainty is thought to have played a role in the company’s demise (you can read our report from May on that issue here), Thomas Cook had other problems and struggled to adapt to changes in the travel market brought about by internet booking and the rise of low-cost airlines.
Turkey’s culture and tourism ministry has warned hotels to not demand payments from tourists or evict holidaymakers from their rooms over the Thomas Cook collapse, according to Middle East Eye journalist Yunus Emre Oruç.
Mr Oruç added that there are reportedly 21,000 tourists in Turkey who are booked through Thomas Cook and the country’s government is working to provide a support package for establishments affected by the collapse.
More on the cause of the collapse:
Julie Palmer, a partner at Begbies Traynor (a firm which specialises in corporate restructuring), has commented on today's news.
Ms Palmer noted that a number of factors contributed to the collapse, such as Brexit and the rise of online bookings, but said the company's management strategy could have played a role in its demise.
She said:
“Questions do have to be asked of the management’s strategy. Other competitors, such as Tui, have faced similar issues yet have weathered this storm and developed a more compelling product offering.
“Unfortunately, the Thomas Cook model was heavily based on a legacy model of high street travel agencies combined with a lacklustre online offering.
“But whatever the reasons for Thomas Cook’s demise, the UK travel industry will be reeling for some time with the loss of one of its most respected and historic names.”
BALPA, the pilots’ trade union, has questioned the government’s decision to not bail out Thomas Cook.
The union has noted that Condor, a subsidiary of the holiday company, has kept flying today and is asking for aid from the German government to stay open.
Here is some more information on Condor from our travel correspondent Simon Calder:
“Thomas Cook's German airline Condor has said around 240,000 customers are booked on its flights, awaiting return home.
“This is more than 50 per cent more than its sister carrier, Thomas Cook Airlines, which is based in Manchester.”
The collapse of Thomas Cook is good news for some…
While thousands of jobs have been put at risk and customers have been stranded abroad, speculators are set to earn as much as $250m (£201m) from the bankruptcy, according to Bloomberg.
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