Thomas Cook seeks additional £2-million rescue funding or faces administration

Following a reported £15-billion loss at the beginning of 2019, which the travel firm blamed on competition from low-cost airlines amidst other factors, Thomas Cook now faces potential administration. Although the company was reassured by a recent rescue deal agreed with Chinese investment firm Fosun, Thomas Cook’s creditor banks (including the Royal Bank of Scotland and Lloyds) have now insisted that the company needs to raise an addition £200-million of contingency funds for the coming winter months.

Around 600,000 Thomas Cook customers are currently on holiday and, as such, the Civil Aviation Authority (CAA) is on standby, ready to launch Operation Matterhorn – its £600-million repatriation contingency plan that may have to bring the holidaymakers home should Thomas Cook fail to find the additional funds.

The CAA said: "We are in regular contact with all large ATOL [Air Travel Organiser's Licence scheme] holders and constantly monitor company performance. We do not comment on the financial situation of the individual businesses we regulate."

As of the moment of writing, Thomas Cook still has time to secure the crucial funding that it needs, but in the eventuality that this does not come through, customers that booked a flight-only deal with Thomas Cook are advised to contact their travel insurance company or credit card company in order to seek a refund.

Customers who bought package holidays, and are therefore covered by ATOL, are financially protected, as is dictated on the ATOL website: “If the business collapses while you are on holiday, the scheme will make sure you can finish your holiday and return home.” The resource continues: “If the business collapses before you travel, the scheme will provide a refund or replacement holiday.”