Joined up thinking...

[ellal]

Or rather the lack of!

Thomas Cook is on the brink of collapse potentially stranding approximately 180,000 people abroad.

'Operation Matterhorn' has been formulated which will be the largest peacetime repatriation operation.

It will cost the taxpayer £600m

And the reason that Thomas Cook might collapse?

The banks, led by RBS, want a £200m injection of cash.

RBS of course is nearly 2/3rds taxpayer owned...
(although the government blew billions of taxpayers money on earlier shares sales)

So £200m to save £600m is a bad deal?

 

[Brigadier]

Or rather the lack of!

Thomas Cook is on the brink of collapse potentially stranding approximately 180,000 people abroad.

'Operation Matterhorn' has been formulated which will be the largest peacetime repatriation operation.

It will cost the taxpayer £600m

And the reason that Thomas Cook might collapse?

The banks, led by RBS, want a £200m injection of cash.

RBS of course is nearly 2/3rds taxpayer owned...
(although the government blew billions of taxpayers money on earlier shares sales)

So £200m to save £600m is a bad deal?

Depends if its the only £200m handout required.
If it's just a stay of execution, it's a bad deal.

 

[festive]

Indeed Lloyd's and RBS as part of this Takeovrr want a 200mil safety net added.. like you say it's a bit of a ransom demand as 600mil is far worse and all the fallout. Who's going to blink first!

 

[motorbiking]

One is insured, the other likely to do little to save the company. Its brand is now trashed, who is going to book a TK flight today? The Airline part will be acquired, VAA might be a candidate, the rest really reflects the package holiday market. I've certainly not bought a packaged holiday for over 20 years.

 

[Notch7]

There have been do many of these Cos going bust.

I think margins are tight and it doesnt tske much to push em over the edge.

Maybe there is a lot of pressure from the no frills airlines, its easy to build your own package nowadays.
Maybe the weak pound
Egypt cost these companies quite a bit -it was a major destination,

Now Ive got a dog, I prefer driving to France

 

[ellal]

Depends if its the only £200m handout required.
If it's just a stay of execution, it's a bad deal.

It has been reported that if it was not enough to keep the company afloat, it would be enough to keep existing contracts going long enough to do the repatriation.
Thus saving £400m. Of course government doesn't think that way because it's not their money.
They'd rather hand out large amounts of taxpayers money to other private companies!

Agree with the comments about package holidays.
Although I've never been on one!
Airbnb is also a factor I would think.

 

[ellal]

Now Ive got a dog, I prefer driving to France

Better enjoy that whilst you can.

Link

 

[ellal]

Well it looks like we'll be footing a massive bill now that TC has gone bust.

Our German friends took a rather different approach when Air Berlin went down.

They gave a 'bridging loan', enabling a wind down period and time for negotiating with other companies to buy up assets and re-employ many of their staff.

5,000 jobs saved...

Over here it's tough s hit!

 

[danechip]

Over here it's tough s hit!

Unless you are one of the 2 banks mentioned and a time machine going back 11 years...

 

[fillyboy]

Well it looks like we'll be footing a massive bill now that TC has gone bust.

Our German friends took a rather different approach when Air Berlin went down.

They gave a 'bridging loan', enabling a wind down period and time for negotiating with other companies to buy up assets and re-employ many of their staff.

5,000 jobs saved...

Over here it's tough s hit!

I thought Thomas Cook was German owned.

 

[SirGalahad]

I thought Thomas Cook was German owned.

Facts & Brexiteers mix like oil and water.

It's probably why in a snap YouGov poll 54% said it shouldn't be saved. I wonder how many thought it was German owned.

 

[EddieM]

I thought Thomas Cook was German owned.

Perhaps you're thinking of Thomsons, founded in England, bought by TUI (German company)?

 

[Bodd]

Facts & Brexiteers mix like oil and water.

It's probably why in a snap YouGov poll 54% said it shouldn't be saved. I wonder how many thought it was German owned.

At one point it was German. I don't no if it still is. It does work on the London and Frankfurt stick exchange.

 

[fillyboy]

Facts & Brexiteers mix like oil and water.

It's probably why in a snap YouGov poll 54% said it shouldn't be saved. I wonder how many thought it was German owned.

https://en.wikipedia.org/wiki/Thomas_Cook_AG

In 2001 Thomas Cook & Son was acquired by the German company C&N Touristic AG, which changed its name to Thomas Cook AG.[1]

On December 21, 2005, Thomas Cook AG, sold off Thomas Cook International Markets, a venture which includes 60% of the stake in Thomas Cook India Ltd to Dubai Financial LLC, a part of the Dubai Investment Group (DIG) which manages the financial and real estate interests of HH Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai. Following this, Thomas Cook Overseas Limited, a wholly owned subsidiary of Thomas Cook UK was sold off, this time again to Dubai Financial LLC.[2]

Thomas Cook Canada was sold to Transat A.T. in 2006, marking Thomas Cook's exit from the North American market in terms of its own retailer.[3]

On 12 February 2007, Thomas Cook AG announced that they had agreed terms on a merger with MyTravel Group to form Thomas Cook Group.[4]

Bought by Germans in 2001 but certainly parts have been sold to Dubai Investment Group since then, looks like there are so many different divisions in the group of companies. Been bailed out a few times now so I would imagine bond holders underwriting the debt have owned it in recent years anyway.

 

[fillyboy]

Has Galahad gorn mental?