Thomas Cook Travel Collapses

[CaptainCrunch]

The big story today is the collapse of Thomas Cook Airlines leaving hundreds of thousands stranded and killing 21,000 jobs


https://www.cnn.com/2019/09/22/busin...pse/index.html

New York (CNN Business)British tour operator Thomas Cook collapsed on Sunday night, stranding hundreds of thousands of travelers and putting 21,000 jobs at risk.



The 178-year-old company said in a statement that its board "concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect" after talks on a financial rescue failed. All Thomas Cook bookings have been canceled, the UK Civil Aviation Authority tweeted.

Thomas Cook's business of selling flightson its own airline, along with hotel rooms, from brick-and-mortar storeshas been under pressure for years from online rivals and low-cost carriers. Brexit has made matters worse by pushing the pound lower (and the company's costs up) and deterring some travelers. The company had reported a loss of £1.5 billion pounds ($1.9 billion) for the six months to March 31.

The move triggers the largest ever peacetime repatriation in the history of the United Kingdom, topping the operation the government carried out after the 2017 collapse of Monarch Airlines.


There are more than 150,000 UK outbound Thomas Cook customers abroad, almost twice the number that were repatriated following the failure of Monarch, according to the aviation authority.



"When people get to the end of their holiday, they will be brought back to the UK," Tim Johnson, head of policy at the UK Civil Aviation Authority, told CNN.


"We've chartered 40 planes and we're going to be running over 1,000 flights over the next two weeks," he added.

[burn_this_city]

The first of probably a few marquee British names that will collapse due to the Pound/Brexit over the next while. Watch for Jaguar and Land Rover to go through severe difficulties next.

[agulati]

Originally Posted by burn_this_city

The first of probably a few marquee British names that will collapse due to the Pound/Brexit over the next while. Watch for Jaguar and Land Rover to go through severe difficulties next.

I believe Jaguar and Land Rover are a subsidiary of an Indian company called Tata motors. I’m not sure how much manufacturing happens in UK though, but having foreign ownership might help them stay afloat.

[Bill Bumface]

Originally Posted by agulati

not sure how much manufacturing happens in UK though

Won't a lot of companies with UK manufacturing for export do well? Your labour and local materials get cheaper vs your foreign sales of goods.

[Flamenspiel]

Originally Posted by burn_this_city

The first of probably a few marquee British names that will collapse due to the Pound/Brexit over the next while. Watch for Jaguar and Land Rover to go through severe difficulties next.

The collapse of the pound should help in those cases.

[Flamenspiel]

Originally Posted by burn_this_city

The first of probably a few marquee British names that will collapse due to the Pound/Brexit over the next while. Watch for Jaguar and Land Rover to go through severe difficulties next.

The collapse of the pound should help in those cases. Nothing is all bad, there are always winners, losers, and shades of grey.

[burn_this_city]

Brexit isn't helping, neither is China slowdown. They are both in rough shape.

https://uk.motor1.com/news/371608/wh...should-by-jlr/

[Barnet Flame]

Thomas Cook’s troubles preceded Brexit. The company has been bailed out twice already over the past five years. Each time the cash injection was meant to herald a new dawn.

It’s business model was suited to the last century. They had over 500 physical stores. I travel a lot. I can’t even remember the last time I, or anybody I know darkened the doorstep of a travel agency.

[Itse]

Originally Posted by Bill Bumface

Won't a lot of companies with UK manufacturing for export do well? Your labour and local materials get cheaper vs your foreign sales of goods.

Not being a part of the EU free trade zone would be a massive handicap.

A no-deal Brexit would likely wipe out a whole bunch of companies essentially overnight, as they just couldn't sell at competitive prices.

[Tsawwassen]

Transat Inc. could face fallout from the collapse of Thomas Cook Group Plc after a partnership between the companies died Monday.
https://www.msn.com/en-ca/money/tops...id=mailsignout