COLLAPSE


THOMAS COOK


Luke Pollard MP: ‘An all-flights levy is back on the table’


Fankhauser: I a Ian Taylor


Tomas Cook chief executive Peter Fankhauser has described the liquidation of the group as “devastating” aſter “working round the clock” and exploring every option for survival since May. Speaking to Travel Weekly,


Cook failure belies package market


Te failure of Tomas Cook “should not be confused with the demise of the package holiday”, a market analyst has concluded. Mintel suggested Tomas Cook


“lost out to rivals”, with research in April finding Tomas Cook “lacked clear differentiation in the market” despite “having a good reputation”. Te research firm issued its analysis


as Labour MP Luke Pollard, former Abta head of public affairs, described the government’s decision not to save Cook as “politically questionable”. Pollard suggested the decision


“went all the way to Downing Street” and noted: “Taxpayers are being landed with a bill on top of the costs of many thousands being made jobless.” Pollard suggested there is “a


growing consensus that a form of Chapter 11 bankruptcy protection for airlines should be introduced” and added: “An all-flights levy is back on the table. Airlines will squeal but, as they keep going bust, they have few friends in this argument.” Pollard argued: “It’s more


important than ever the holiday sector does not sit on its hands. We need the sector to be loud and vocal


4 10 OCTOBER 2019


about what lessons need to be learnt.” Mintel dismissed media claims


that Cook’s collapse reflected a decline of the package holiday and suggested Tui and Jet2holidays were poised to gain market share. It predicted the number of


package holidays taken this year would grow by 1.4% while the number of independently booked holidays would decline by 0.5%. “Te volume of overseas package holidays taken by UK residents continues to grow year on year,” Mintel said. Te research firm reported


Cook “was not seen as particularly innovative or cuting-edge”. Meanwhile, easyJet boss Johan


Lundgren, writing in Te Daily Telegraph, said “fixed-duration” package holidays were “on the way out”. But he noted: “Sales of holiday packages have grown faster than the economy every year for the past 10 years”. In his opening address at Te


Travel Convention in Tokyo this week, Abta chief executive Mark Tanzer said: “Far from signalling the demise of the package holiday, the Tomas Cook


failure has been its vindication.” i Comment, page 18


travelweekly.co.uk


Fankhauser said: “I feel awful for all my colleagues, for all the suppliers – many of them I know personally – and for all our customers who have to wait for their money. I am terribly sorry.” He welcomed the scrutiny


of regulators and MPs following widespread condemnation of the pay of Tomas Cook executives, the payouts to financial advisors and the practices of auditors. Fankhauser said: “I am happy we will get transparency.” Te group’s £1.6 billion debt


drove it to the wall, he confirmed, exacerbated by a squeeze on its finances throughout 2019 as credit conditions tightened, card companies withheld payments and suppliers demanded money in advance. But he insisted: “I was convinced


we could succeed.” A planned takeover by Chinese


£1.6bn Size of Thomas Cook’s debt that Fankhauser was unable to resolve


group Fosun, Cook’s largest shareholder, and the group’s creditor banks and bondholders was announced in July, but finalising this “proved hugely complex”. Fankhauser said: “We made good


progress. At the end of August, we had substantive agreement.” Te deal fell through when the


banks demanded an additional £200 million credit facility be


CAA starts processing 360,000 claims


Te CAA launched its largest Atol refund scheme on Monday, with 60,000 claims made in the first day. Te Atol reimbursement


programme is expected to process 360,000 refund claims for forward bookings with Tomas Cook, affecting 800,000 passengers. Payouts are predicted to total £420 million. “Unprecedented demand”


led to delays on the CAA’s refund website shortly aſter 9am on Monday morning, but 11,500 claims had been submited by 11.45am that day – and 100,000 by Tuesday lunchtime. Chair Dame Deirdre Huton said


the CAA had reported suspected fraudulent activity to the police and urged customers not to share details with any other websites. Te last flight of a two-week


PICTURES: Chris McAndrew/UK Parliament; Shutterstock


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