The world’s oldest travel agency Thomas Cook collapsed on Monday as failed to secure a £200m lifeline from government-owned RBS and its bankers.
Lakhs of vacationers are left stranded around the globe and the largest peacetime registration effort in British history is sparked. Thomas Cook suffered a low by 1.7 billion pound debt pile due to changing travel market, online competition, and geopolitical events.
Boris Johnson, the British Prime Minister, pledged to get abandoned British travelers home and told that the government did not comply to Thomas Cook’s request for a bailout of one hundred and fifty million pounds or $187.1 million because acting so would set up a moral hazard.
This liquidation marks the culmination of one of the U.K.’s oldest companies that started in 1841, running local rail trips before it managed to survive two world wars to lead package holidays and mass tourism.
The company ran resorts, airlines, and holidays for 19 million people a year in sixteen countries. It currently has 6 lakhs people abroad, forcing insurance companies and governments to coordinate a massive rescue operation.
Chief Executive Peter Fankhauser noted that it was an event of profound regret that the firm had gone out of business as it failed to secure a rescue amount from its lenders in distressed talks that went through the weekend.
Frankhauser apologized in a statement to Thomas Cook’s thousands of employees and millions of customers as well as its partners and suppliers who have supported the company for many years.
According to the U.K.’s Civil Aviation Authority, Thomas Cook ended trading and the government and regulator had several planes ready to bring home more than 1,50,00 British customers stranded abroad over the next two weeks.
All of Thomas Cook’s flights are canceled. Pictures have emerged on social media showing the company’s planes being diverted from the normal airport stands. The firm’s employees also posted pictures of themselves walking out of their last flights.
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