Uncertainty for tourists affected by Thomas Cook crisis
The possible bankruptcy of UK tour operator Thomas Cook, would be a bombshell for European holidaymakers and trigger a huge repatriation operation.
There would be many implications for tourists if the embattled, 178-year old company collapsed. If it failed to secure the £200m rescue funds or find an alternative plan, it would have to file for bankruptcy in Britain. The group’s activities would cease immediately, its travel agencies be closes, its aircraft grounded and 22,000 employees — 9,000 in Britain — left out of jobs. Directors would be appointed to try to find a buyer, restructure its debt or sell assets.
Worldwide, about 600,000 tourists would have to be repatriated, including 150,000 Britons, the UK’s biggest such operation since World War 2. It could take two weeks, the maximum duration of most of Thomas Cook’s package breaks.
The Civil Aviation Authority (CAA) would be responsible for organising repatriation, as it was in the bankruptcy of British airline Monarch in October 2017.
The bill is expected to run to several billion pounds, including £600m in the UK alone. The CAA has drawn up an emergency plan called Operation Matterhorn, named after US bombing operation against Japan during World War 2.
Thomas Cook assured its British clients that they are protected by the “ATOL guarantee”. This system, based on a European directive, is managed by the CAA and covers tourists who bought all-inclusive trips with flights and hotels. Those already on holiday will finish their stays and return as normal, with other companies providing services. Those still to leave will get refunds or alternative holidays.
The European package travel directive applies to holidaymakers who booked in EU countries, guaranteeing refunds and repatriation in the event of bankruptcy. The CAA has vowed everything will be done to bring tourists back on the due date.
Travellers with airline tickets only from Thomas Cook are not covered by ATOL, but can turn to credit-card providers or insurers.
600,000 The number of holidaymakers who might have to be repatriated if the UK firm files for bankruptcy