Thomas Cook collapses, leaving thousands of travelers stranded

[konfab]

Well done to Boris for refusing to bail out Thomas Cook. Private companies mustn't think they can rely on the public purse if they fail!

Why do you think big corporates shoulder up to socialist governments?

 

[Spizz]

It had no part to play whatsoever, Thomas Cook has not been a viable business for over a decade, it's a blight on the free market system that it has been allowed to limp along until now, should have failed ages ago.

No amount of CNN / The Guardian / <insert your bullshyte source to spew the anti-brexit agenda here> makes the slightest bit of difference to the truth. Yet you keep repeating the narrative ad nauseum without engaging your own brain, ironically telling others to "comprehend"

If there was any noteworthy "reluctance to travel" other travel companies would also be folding, they're not, because there isn't.

Now, with that out of the way, Thomas Cook failing is a massive gain and huge positive step for the free market, it must be celebrated. Whoever caused it to finally fail is a national hero!

I agree that Brexit has got nothing to do with this, the internet is imo the most likely culprit making package holidays expensive and largely irrelevant now for many who can organise it themselves cheaper.

But on what planet is celebrating the collapse of a much loved national institution and the loss of 21,000 jobs a good thing? WTF is wrong with you?

 

[Spizz]

Dominc Raab indicated that the govt will only bale out companies if its in the national interest. Holiday companies dont qualify.

Even the Tories will bale out a company, it its in the national interest. Whatever that means

It means they do it for their pals in the financial sectors. As much bail out as you need with no accusations or questions answered on why it happened in the first place. That's what Tories do for each other.

 

[NarrowBandFtw]

But on what planet is celebrating the collapse of a much loved national institution and the loss of 21,000 jobs a good thing? WTF is wrong with you?

on the planet where efficiencies should be passed on to the consumer, and the best company in terms of what they can offer the consumer should survive, the rest can get fahked

 

[Gordon_R]

Knock-on effects are being felt in subsidiary companies of the Thomas Cook group, though some of them are still solvent, and still operating, but not taking new bookings. Other 3rd parties are also affected: https://www.bbc.com/news/world-europe-49807954

Germany is considering issuing financial aid to the Condor airline after Thomas Cook declared bankruptcy.

Thomas Cook, which has a 49% share in the airline, collapsed on Monday.

Condor has applied for a bridging loan from the federal government and is awaiting a response, with German media reporting the amount requested was €200m.

Condor has said it will not carry passengers who have booked with Thomas Cook or its subsidiaries. Those passengers have been advised to get in contact with their tour operator.

A German government official said that compulsory insurance should cover most German travellers if they were stranded abroad, Reuters reports.

Thomas Cook's subsidiary in Germany is still operating but has stopped taking bookings, DW.com says. This includes all of its German subsidiaries such as Neckermann, Öger Tours, Air Marin and Bucher Reisen.

Thomas Cook's German operations are widely considered to be in a healthier state and have remained profitable, DW adds.

The Dutch unit of Thomas Cook has cancelled all travel booked through Thomas Cook Netherlands and subsidiary Neckermann. The companies said that they looked into the possibility of fulfilling the booked journeys but were unsuccessful. A special call centre has been set up for those affected.

Currently, there are 10,000 Dutch tourists abroad with Thomas Cook.

There is concern in countries such as Egypt and Greece that local businesses could be financially impacted by loss of tourism.

• The Gambia's government has held an emergency meeting over the collapse of Thomas Cook. There is concern that its collapse will heavily impact tourism which contributes more than 30% of the Gambia's GDP
• In Egypt, Thomas Cook operator Blue Sky said reservations until April 2020 have been cancelled. Bassem Halaka, chairman of the Tourism Syndicate in Egypt, said that Thomas Cook "was a major organiser of charter flights from the UK to Sharm El-Sheikh" and that tourism in these resorts would be affected
• In Cyprus, the loss for hoteliers and the wider economy is about €50 million, according to Cyprus' deputy tourism minister Savvas Perdios. He added that hotels were owed money for July, August and even September
• 50,000 tourists are stranded in Greece, according to the tourism minister. Grigoris Tassios told local TV that hotels were expected to make losses on payments from the past two months. He said that hotel companies would attempt to recover money from Thomas Cook in court
• In India, Goa's Travel and Tourism Association said that the loss of Thomas Cook is a "big, big, blow to the industry."
• Spain's Balearic Islands faces million of euros in losses. Thomas Cook has a tax office in Palma with hundreds of employees, and also works with 20 hotels in the Balearic Islands and 20 in the Canary Islands
• About 53,000 British tourists in Spain have been affected. Spain's ministry of tourism has been in contact with German and Swedish authorities to ensure their subsidiaries will continue to operate during the winter season.
• Turkey's Hoteliers Federation (TUROFED) has warned that the country could miss out on up to 700,000 tourists a year due to the collapse of the tour operator. The chairman of TUROFED, Osman Ayik, told Reuters: "There are a large number of small businesses whose fates depend on Thomas Cook, especially in Mugla, Dalaman and Fethiye." He added that some small hotels in Turkey are still owed around £100,000 - £200,000 ($125,000-$250,000).

 

[Spizz]

on the planet where efficiencies should be passed on to the consumer, and the best company in terms of what they can offer the consumer should survive, the rest can get fahked

So several factors combined and they went bust. Maybe I’m being slow here, but I’m still not getting the massive gains for the free market and the need to celebrate. They were one package operator out of many so I don’t understand how this is an advantage to the free market? Surely more competition is better for the consumer, not less, as it is now?

 

[NarrowBandFtw]

So several factors combined and they went bust. Maybe I’m being slow here, but I’m still not getting the massive gains for the free market and the need to celebrate. They were one package operator out of many so I don’t understand how this is an advantage to the free market? Surely more competition is better for the consumer, not less, as it is now?

They were not competing, if they were they might have survived.

TC's downfall is an advantage for the free market in that the capital that was wasted on it can now be allocated to more worthy businesses, at least what's left of it anyway.

The lenders that pissed away their money on a failed business model have learned a valuable lesson and will be more shrewd next time around. Consumers that stuck to an outdated travel company have also learned a valuable lesson and will now be forced to use the more efficient competition. Altogether a massive win for the free market.

A bailout would have been the polar opposite, throwing good money after bad and keeping a failed business on life support to let lenders continue their bad lending habits, to steal money from taxpayers and to withhold better options from change resistant consumers.

 

[Gordon_R]

German subsidiary files for bankruptcy protection, though it is still profitable: https://www.bbc.com/news/world-europe-49824427

Thomas Cook's German subsidiary has announced it is filing for insolvency in an attempt to save its national brands after the collapse of the UK parent company on Monday.

Almost 100,000 holidaymakers are travelling with the German affiliates and it is not clear what the bankruptcy proceedings will mean for them.

Thomas Cook Germany employs some 2,000 people and has several national brands, including Neckermann, Öger Tours, Air Marin and Bucher Reisen. A thousand people are employed by the company near Frankfurt.

It said it was talking to the German foreign ministry as well as the travel bankruptcy insurer, Zurich, about repatriating customers.

 

[Craig_]

It is not about a world view, my world view or even yours. It is a fact that the real businessmen of the world who were able to start a small business, growing it into an international corporation and running it successfully, is gone. The business world today are run by snowflakes, people who bow to corrupt governments, believe their company profits must be shared with employees, believe employees needs to be looked after, have rights to protest actions, get a lot of money for doing the least possible. This is where the world is heading. There is no future for large businesses in this world. Just like TC they will all come tumbling down.

Another Lew/Adrianax clone. You never give up ne.

 

[surface]

Another Lew/Adrianax clone. You never give up ne.

He is a self-confessed billionaire and entrepreneur on the lines of elon musk. Your post may not reach him directly as he has delegated that responsibility to several of his highly skilled workers.

 

[Craig_]

He is a self-confessed billionaire and entrepreneur on the lines of elon musk. Your post may not reach him directly as he has delegated that responsibility to several of his highly skilled workers.

He also mines for diamonds in his backyard, don't forget that one.

 

[Jabulani22]

Brothels will always be viable.

Yeah but sometimes the client eats em up...............

 

[noxibox]

Profit sharing is not a recently formulated scheme. It may be as old as some of the old businesses. I'm actually shocked you don't believe employees must be looked after.

Unless your businesses employs mostly unskilled labour.

Edit: Even then, you need to ensure their safety. It's not only about providing medical aid and such. It's about their well-being as well.

It is actually established that the biggest impact is achieved by engaging the lowliest employees in the business which means giving them a stake and a share of the profit. On the other hand rewarding executives with shares and bonuses is a dangerous, often counterproductive practice. It can become a bit like allowing the police to keep the assets they seize.

It's a clueless, or psychopathic, businessperson who treats their employees as pieces of equipment, to be used and discarded. Sure some employees will stab you in the back anyway even when you treat them well, but if you treat them like inventory and they do it you're only reaping what you have sown.

Never has greater truth been spoken. May I be your disciple? Teach me to do business the way it was done in the old days. When men were men and women were broads.

Well in the old days it was important to have powerful connections to clear the way. Corruption was a vital element of doing business. Also in the really good old days you'd just have your rivals murdered. Who wants to waste time on nonsense like competition. In the really, really good old days you didn't even have to employ people. You just bought them like the rest of your equipment. When they wore out you threw them away and bought more.

Dominc Raab indicated that the govt will only bale out companies if its in the national interest. Holiday companies dont qualify.

Even the Tories will bale out a company, it its in the national interest. Whatever that means

It means that they or their friends stand to lose a lot of money which the bailout will prevent or make a lot of money from the bailout. That's the national interest.

 

[3WA]

Well in the old days it was important to have powerful connections to clear the way. Corruption was a vital element of doing business. Also in the really good old days you'd just have your rivals murdered. Who wants to waste time on nonsense like competition. In the really, really good old days you didn't even have to employ people. You just bought them like the rest of your equipment. When they wore out you threw them away and bought more.

I'm sold. Count me in!

 

[Gordon_R]

Capitalism always moves forward, rising from the ashes of the past: https://www.bbc.com/news/business-49985369

All 555 Thomas Cook shops are to be bought by rival Hays Travel in a move that could save up to 2,500 jobs.

The independent travel agent is buying the shops from the Official Receiver, which was appointed when Thomas Cook collapsed last month.

Sunderland-based Hays said it planned to reopen the shops under its own brand with immediate effect.

Hays has already offered jobs to 600 Thomas Cook staff and it plans to hire more as part of its rapid expansion.

The move is a significant step for Hays, which currently has 190 shops across the UK.

John Hays, who set up the the company 40 years ago, said: "It is a game-changer for us, almost trebling the number of shops we have and doubling our workforce - and for the industry, which will get to keep some of its most talented people".

 

[The_Librarian]

I've seen what happens when somebody expands too quickly - and revenue is not flowing in quickly enough...

We will have to wait and see what happens.