By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Is this the end of Thomas Cook?
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Have an existing account? Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2024 | All Rights Reserved
Travel Radar - Aviation News > News > Is this the end of Thomas Cook?

Is this the end of Thomas Cook?

Luke Will
Last updated: 15 September 2019 17:46
By Luke Will 4 Min Read
Share
SHARE

Thomas Cook, to many, is the epitome of UK package holidays – The go-to supplier of Holiday & Flight packages, but is the end near for the holiday giant?

Thomas Cook, a178-year-old global travel group,  has recently began talks to seek a £1bn rescue deal, after warning it is at risk of insolvency. This comes after an already proposed £900m rescue request, which has subsequently been upped by £100m over “troubled times.” On top of this, the carrier is having to persuade the Civil Aviation Authority (CAA) – which administers the Air Travel Organiser’s Licence (ATOL) scheme which covers travel companies (Read more about ATOL here) – that it should renew its licence at the end of September for another 12 months, allowing it to continue selling package holidays.

“We gather they will be applying for a bit of breathing or wriggle room in order to try to get the deal through,” a representative stated following their announcement that they will delay their shareholder meeting till Wednesday – from it’s original plan of Monday – in order to try and bag more time to secure a deal. The carrier is said to be involved in The company is involved in “11th-hour talks” as it looks to finalise a plan with Chinese conglomerate, Fosun (The airline’s lenders and bondholders) regarding it’s restructuring.

Thomas Cook is a brand known to many around the world (c) Thomas Cook Group

But what’s gone wrong?

Thomas Cook is a reputable brand, having operated for many years – Infact, many Britons still cite TC as their go-to for package holidays. However, tough competition from rivals Jet2 and TUI, as well as current affairs such as Brexit, have weighed on the company’s recovery after it’s near-collapse in 2011. Coupled with this is the high prices of jet fuel and hotels pushing up costs, while last summer’s heatwave convinced European customers to stay at home, hitting the airline’s profits. In August of this year, details were published about a planned restructuring, including a £900m cash injection from Fosun International; An injection, now relied on by the carrier, hoping it will be completed in early October. With the company heads into winter, when holiday bookings are at their lowest, a deal is critical to avoid bankruptcy.

Summer marks the busiest period for package holiday providers, with an estimate of over 11 million customers having travelled with Thomas Cook during the busy commercial period of summer. As schools return for the academic year, many travellers have sought cheaper deals, travelling overseas with the carrier- It is estimated that tens of thousands of Britons are still currently overseas, on holidays they have purchased from TC. However, sources played down suggestions that the CAA is drawing up contingency plans to deal with the possibility of having to repatriate tens of thousands of passengers if they are stranded abroad. An ATOL protection means passengers are financially protected  in the event an airline goes bust, ensuring they are able to get home safely with another carrier.

(Above) One of many Thomas Cook stores offering package-holidays (c) Thomas Cook Group

A CAA Spokesperson said in a press-release: “We are in regular contact with all large ATOL holders and constantly monitor company performance. We do not comment on the financial situation of the individual businesses we regulate.” – When asked for comment by Travel Radar Media, Thomas Cook declined.

Do you have a holiday booked with the operator? Will this affect you? Get in touch: [email protected]

You Might Also Like

Emirates introduces more retrofitted Boeing 777s and Airbus A380s serve from October

Why You Should Visit Japan This Winter

Turkish Airlines set to make an Investvestment in Air Europa

Mexicana Takes Delivery of First Embraer E195-E2 Jet

Qatar Airways Resumes Flights to Iraq, Syria, Lebanon and Jordan

Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Luke Will
By Luke Will
Follow:
Editor in Chief - Contributing to the aviation news and investigative journalism sections of Travel Radar, Luke brings a rich understanding of the commercial aviation and air-travel industry to his reporting.
Previous Article Airbus A350- The early years!
Next Article Delta flight experiences a loss in cabin pressure as flight diverts to Tampa
Leave a comment
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Singapore
Singapore Airlines’ Financial Performance Results in Profit at End of Year 2024-25
Airline Economics Airlines Aviation
inside aircraft
Assistance and protection for vulnerable travellers : Proposal to reinforce EU passenger rights
Aviation Travel
Colourful houses at sunset in the capital of Greenland, Nuuk. Mountain in the background and houses are at the right edge of the photo.
SAS reconnects with Greenland in new flight route
Airlines Aviation Route Development Travel
Under Secretary for Home and Youth Affairs of the Hong Kong SAR Government Clarence Leung (fourth from left), Cathay Chief Customer and Commercial Officer Lavinia Lau (third from left), HKYAA Chairman Captain Patrick Lau (third from right), Chief Flight Standards of the Civil, Aviation Department Captain Lawrence Wong (second from left), and HKYAA Honorary Advisor Albert Wong (second from right) kicked off the launch event with paper plane flying activity
Cathay and HKYAA Launch New AeroQuiz and Cathay Inter-school Aviation Challenge Cup
Airlines Airshow & Events
Indian Prime Minister Narendra Modi at the Air India crash site
India denies UN assistance following the 787 crash
Aircraft Aviation Incidents & Accidents
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • About Us
  • Contact Us
  • Careers
  • Press & PR
  • Privacy & Legal

Our Content

  • News
  • Data
  • Images
  • Jobs
  • Subscribe

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Click here to Signup!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
AdBlock Detected
Ads help us bring you high-quality, independent journalism for free. Support us by whitelisting us from your ad blocker.
Okay, I'll Whitelist
Welcome to the TR Community!

Sign in to your account

Register Lost your password?