It just means that no one is too big to fail. Thomas Cook, one of the world's largest travel operators, stopped trading on Monday after a disappointing bid to save the company. The company was declared bankrupt at 2:15 am today.
This is the serious information currently posted on websites that they no longer exist:
“Thomas Cook UK Plc and associated UK entities have entered Compulsory Liquidation and are now under the control of the Official Receiver. The UK business has ceased trading with immediate effect and all future flights and holidays are canceled.”
“A dedicated support service is being provided by The Civil Aviation Authority to assist customers currently overseas and those in the UK with future bookings. Please visit thomascook.caa.co.uk for further information.”
The effects and flaws will be generated in the distance. Thanks to Thomas Cook's package, there are currently about 600,000 tourists on vacation. Hundreds of high-street stores will be closed, and fuel producers may be seriously trapped after airlines fail to keep their minds clean. But what does this mean for us in South Africa?
Impact on South Africa
Well, first of all, we have lost the direct route to the UK. Thomas Cook previously operated flights from London to Cape Town during the busy summer months. It turns out that this route is usually cheaper than competitive flights, but its popularity is not enough to keep the company running.
Second, South Africa will be unemployed. It is well documented that Mzansi is home to multiple Thomas Cook call centers and operations offices. The company has several training programs in SA that will disappear with the 180-year-old company itself.
The world has lost about 21,000 jobs and will now sell a fleet of 34 aircraft to other airlines. As we are outdated in South Africa, it is understandable that travel to South Africa has the least disruption. We are waiting for Thomas Cook's comments to determine how many people are actually affected here.
Why did Thomas Cook collapse?
The company's financial management is not good. But they are victims of their reputation. When the news about their cash flow problems was made public, a large number of investors and creditors began to knock on the door and demand payment. Debt piles up like a mountain, and Thomas Cool is penniless.
Sadly, the bosses have won millions of pounds and are unable to cope with the changing tourism landscape – including political turmoil and a highly competitive online market – to speed up liquidation.
Does the Brexit cause Thomas Cook to go bankrupt?
No. Market uncertainty may play a role here, but it is mainly due to the company itself.
How will holidaymakers go home?
The British government has begun to repatriate customers stranded on the plane and pay about 150,000 travel agencies for the flight. Other countries are expected to follow suit, and global efforts can cost hundreds of millions of pounds or even billions of pounds.
