PSA: Avoid Thomas Cook Travel Agency - Pending bankruptcy

[Lanny]

It would be good, if anyone here is planning to travel, that they avoid the Thomas Cook Travel Agency. They are facing Bankruptcy and that would cause their airline and other operations to be suspended immediately.

Apparently, for people who live in the UK, if they are overseas and Thomas Cook stops operating, the British government will send aircraft to rescue them, but I believe that is only for people who live in the UK (Citizens and possibly legal residents)

Here's one link and if you Google, there are others about this company:  https://www.foxnews.com/travel/thomas-cook-held-hostage-tunisia

[mumto2]

I have no idea how this is going to play out but have to say my family has loved this airline.  We were just on it a month ago........it’s been in the horizon all summer so we were relieved to be able to use our tickets.

[Lanny]

I am thankful that your trip went well,  With time, we will know how this  plays out. The numbers of travelers who may be overseas now(from the UK) is apparently in the tens of thousands.  If Thomas Cook suspends operations, IMO it will take the UK government awhile to get them back to the UK. The logistics of that are difficult. Possibly they will get another infusion of cash and that will enable them to continue in business, at least temporarily, if not permanently. 

[Jean in Newcastle]

Operation has been suspended.  Thousands are stranded.  At least in the news I saw. 

[Lanny]

Yes. Sad. There are approximately 150,000 from the UK who are overseas. The UK government travel insurance plan will send charter aircraft to bring them back to the UK. That will take approximately 15 days.

This illustrates why people should investigate and (probably) purchase Travel Insurance or Trip Interruption Insurance or Cruise Insurance and Medical Evacuation Insurance, depending on where they are going.

https://www.foxbusiness.com/markets/tour-company-thomas-cook-collapses-global-bookings-canceled

[Lanny]

This article from BBC seems very complete with lots of details. I hope nobody here is involved in this fiasco, but if so, read this article. The first rescue flight left JFK  in NYC for the UK this morning.

https://www.bbc.com/news/business-49796827

[mumto2]

We spent last night watching the timing of things........we were so glad that they were able to wait until this morning (7am gmt) so at least the people already in airports in the US were able to be in the air or just landed when the closure came.  It’s likely a large family we chatted with on our flight was on one of last night’s Orlando to Manchester flights.  

Also credit card companies appear to have withheld payment of £50 million to Thomas Cook over the summer because of the known financial issues.  That certainly didn’t help the cash situation for Thomas Cook.  Although it will hopefully make refunds much easier for those who have booked for future travel.

[Lanny]

If the banks withheld payments of 50 million Pounds to Thomas Cook, that is probably stipulated in their contract  with Thomas Cook, as something they can and may do, to try to protect themselves, if they suspect Cash Flow issues or possible Bankruptcy in a customer.. That will help the banks refund the tons of money they need to refund now. I think Thomas Cook was about 2.1 billion (with a B) dollars or Pounds in debt. 50 million is a drop in the bucket compared to their debt. They did not seem to adapt to the changes in how business is done now and had terrible management.  Sad for their former employees and the customers who are inconvenienced now.

I told my wife this morning, that I think before we went on trips to the USA, in 1999 and 2000, that we bought Travelers Checks from our bank. I think (but am not positive) they were Thomas Cooks Travelers Checks. So, with this fiasco in the Thomas Cook organization, I am wondering, if they have been issuing Travelers Checks recently, if those checks are now worthless?

[mumto2]

Pretty sure there were Thomas Cook brand travel debit cards, but just a brand.....the actual bank behind the cards was someone different......issued by Wired Card Solutions..

Edited September 23, 2019 by mumto2

[Lanny]

The company that had invested, or, was contemplating investing, about one billion dollars (USD) into Thomas Cook is in China. They own Club Med, which, when I was young, was a French company.  The Chinese company didn't see any path to success for Thomas Cook, if they increased their investment by 200 Million British Pounds, as requested by Thomas Cook in recent days. Also, they had requested a percentage of the Stock or Control, which the current (inept) Thomas Cook Management did not go for.

How long would that extra $250 Million USD have allowed them to continue operating? One week? One month? Not very long, for a business that was selling like they did in 1960 or 1970, before the Internet.

The pilots will have no problem finding new positions. There is an enormous shortage of airline pilots that will last for many years. Hopefully the Flight Attendants and Mechanics and other employees of their airline can find employment with other airlines.

The Travel Agents are not in a very good position, because they have more or less become redundant. I suspect some of them will go to work for  airlines, or become specialized Travel Agents, like my cousin who does Cruises. She has been doing that for many years. Others sell only Disney.

IMO very nice that the British government has that insurance in place and will rescue the  people who are overseas now.  I assume there is a tax on the airline tickets and travel packages to pay for that, and that the tax is mandatory, but this is the 2nd time in the past several years (Monarch Airlines) they have rescued people.