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As it happenedended

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

Simon Calder
Manchester
,Conrad Duncan
Monday 23 September 2019 10:05 BST
Comments
Thomas Cook has collapsed after last-minute talks to save the company failed
Thomas Cook has collapsed after last-minute talks to save the company failed (Reuters)

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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".

Hello and welcome to The Independent's rolling coverage of the collapse of holiday giant Thomas Cook.

Conrad Duncan23 September 2019 07:36

The package holiday company collapsed last night after attempts to save the firm failed.

Our travel correspondent Simon Calder has the essential information for holidaymakers who are currently abroad and those who have a holiday booked with Thomas Cook.

You can read his advice here.

Conrad Duncan23 September 2019 07:49

Thomas Cook's German airline subsidiary, Condor, has said it is still flying and is seeking a loan from the German government.

Condor said this morning that its flights are going ahead as scheduled, despite the insolvency of its parent company.

It said that “to prevent liquidity shortages at Condor, a state-guaranteed bridging loan has been applied for.”

The German government is currently considering the application, according to the company.

Conrad Duncan23 September 2019 08:04

Last night, Boris Johnson admitted that the government had refused to grant the holiday company a £150m bailout.

The prime minister claimed it would create a “moral hazard” for other failing businesses.

Mr Johnson said:

“Obviously our thoughts are very much with the customers of Thomas Cook, the holidaymakers who now face difficulties getting home…

“It is perfectly true that a request was made to the government for a subvention of about £150m​.

“Clearly, that is a lot of taxpayers’ money and sets up, as people will appreciate, a moral hazard in the case of future such commercial difficulties that companies face.”

You can read more about Mr Johnson's comments here.

Conrad Duncan23 September 2019 08:10

John McDonnell, Labour’s shadow chancellor, has said the British government should have stepped in with a temporary rescue package for Thomas Cook.

This morning, he told the BBC:

"The government's intervention could have enabled us to just stabilise the situation, give a breathing space so that there could be proper consultation with the workforce in particular about how to go forward.

"To just stand to one side and watch this number of jobs go and so many holidaymakers have their holiday ruined, I just don't think that's  wise government."

Conrad Duncan23 September 2019 08:15

The head of the British Airline Pilots' Association (BALPA) has said Thomas Cook employees’ have been “stabbed in the back” over the collapse of the holiday company.

Brian Strutton, the general secretary of BALPA, described the situation as “despicable”.

He said:

“Despite continuing to keep Thomas Cook going in recent weeks with dignity & integrity while their own futures were being secretly decided, we don’t even know if staff will get a pay cheque this month.

"It’s despicable. TCX pilots and all staff deserve better than this." 

Conrad Duncan23 September 2019 08:30

The UK travel trade association ABTA has released its advice for customers who have a booking with Thomas Cook or one of its Group companies.

Mark Tanzer, ABTA’s CEO, said he was “extremely saddened” by the news of the holiday firm’s collapse.

Conrad Duncan23 September 2019 08:38

Our travel correspondent Simon Calder says Thomas Cook was still taking bookings just hours before it collapsed.

He said:

“Shortly before midnight on Sunday 22 September, I bought a cheap holiday in Greece. Thomas Cook was still taking bookings – and money – barely two hours before it collapsed.

“The package for two cost £187 per person, including flights from Stansted, transfers and accommodation.

“Even as Thomas Cook winds down, the company's reservation system is still sending out confirmations. 

“At 8.12am, I received the Confirmation & Travel Document, with the cheery sign-off: 'We hope you have a fantastic trip and look forward to hearing about it when you get home.'"

Conrad Duncan23 September 2019 08:56

Grant Shapps, the UK's transport secretary, has said Thomas Cook went under because it didn't “move with the times”.

He also defended the government’s decision to not bail out the company.

Conrad Duncan23 September 2019 09:03

More from our travel correspondent Simon Calder:

“Thomas Cook’s closest rivals, easyJet and TUI, have both seen their share prices soar – up 6 and 7 per cent respectively in the first hour of trading.

“The market view is the removal of a giant competitor will allow these and other travel companies to increase prices over the winter and beyond.”

Conrad Duncan23 September 2019 09:05

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