Tour Operator Thomas Cook Has Entered Liquidation

Tour Operator Thomas Cook has entered liquidation.  Their 94-aircraft fleet was made up of A320s, A330s, B757s and B767s.

On Friday, Thomas Cook announced that it was seeking 200 million pounds in funding to stave off a liquidation.   This morning (Monday), Thomas Cook filed for liquidation.

Shadow Chancellor John McDonnell complained that the UK had failed to bail-out Thomas Cook but Transport Secretary Grant Shapps responded that the Thomas Cook business model had failed to keep up with the times and was not sustainable. Any attempt to bail them out “was not really a goer” and would have been a waste of taxpayer money.  Prime Minister Boris Johnson affirmed this government position.

A number of tourist locations have expressed that the shuttering of Thomas Cook could have a significant effect on tourism in various parts of the world.

Tui is a major competitor to Thomas Cook. It was reported that Tui shares were up in anticipation of securing the business lost by Thomas Cook.

 

 

About Jason Dickstein
Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. Since 1992, he has represented aviation trade associations and businesses that include aircraft and aircraft parts manufacturers, distributors, and repair stations, as well as both commercial and private operators.

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