davemc1
Journeyman Pro
Gutted for the staff, and anyone left in holiday limbo.
Thomas Cook
- Thread starter chrisd
- Start date
Lyle77
Member
Very sad news with 9000 job losses as a result of this. Boris Johnson says there is nothing more the government could have done which clearly isn't true.
At least anyone that has booked up or are overseas will be protected by ATOL and CAA.
At least anyone that has booked up or are overseas will be protected by ATOL and CAA.
Dan2501
Tour Winner
Well - not sure what else can go wrong with this holiday. We booked hotel and flights separate and both companies have gone out of business 
Sucks for those working at TC. Been through redundancy myself a couple of years ago, not quite the same circumstances but gutting all the same, so know how they're feeling.
We've managed to book flights with TUI for next Friday, so not a total disaster for us fortunately but imagine a lot of people will be pretty stumped, people who have been saving all year for a package holiday and won't have the money to re-book before they get the money refunded for their previous holiday. Going to be a lot of very sad and disappointed people today, shame they couldn't sort out a deal that could keep them in business.
Sucks for those working at TC. Been through redundancy myself a couple of years ago, not quite the same circumstances but gutting all the same, so know how they're feeling. We've managed to book flights with TUI for next Friday, so not a total disaster for us fortunately but imagine a lot of people will be pretty stumped, people who have been saving all year for a package holiday and won't have the money to re-book before they get the money refunded for their previous holiday. Going to be a lot of very sad and disappointed people today, shame they couldn't sort out a deal that could keep them in business.
This is a question that crops up when any major employer gets into trouble. For some reason govts seem more inclined to help the older, heavier industries where the service industries seem to be left to their own devices. Ultimately though, why should the govt plough money into a clearly failing business? This is not a temporary blip, they have been struggling for some time. Why throw good money after bad?
In essence you are right, Boris could have thrown money at TC so he could have done something. Perhaps he should have said it was not a wise use of tax payers money to do something?
Impressive response from so many of the staff out in resorts. They are now unemployed, they are not getting paid but they are carrying on trying to help holidaymakers.
Jensen
Tour Rookie
Not quite true, the government bailed out the Banks during the financial crisis.
The Banks are classed as the Service Industry
Fair point. They would class the banks as crucial to the economy though whereas a holiday firm is not. One bank can go, Northern Rock, but the whole system can not fold as that would ripple out over the whole country. TC goes, there are still plenty of alternatives and whilst many people will lose their jobs the whole economy will not suffer. Same as for BHS, Woolworths etc.
It is a big blow to all 9,000 UK workers, I am not underestimating the individual impacts.
Jimaroid
Journeyman Pro
The "whole economy" argument is going to rest on whether it'll have been cheaper to intervene with a bailout and repatriate using TC resources, or allow the company to fail and tidy up the mess of repatriation through government and insurance finance. In either option, the company had failed and the tax payer is paying, it is irrespectively a whole economy problem whichever way you look at it.
I dare not speculate the reasons TC are in this mess but to be a travel agent with the current value of the pound in the greater world economy seems to be unsustainable. Awful situation for employees and people set to lose out on well earned holidays.
But could Boris have thrown money at it? Might that not fall under a govt subsidy, which would contravene EU competition laws. There would have been a way around it, e.g. the govt becoming a share holder as they did with RBS.
But why should the tax payer support poor management of a business? Imagine how fast and loose some business owners would be if they knew they had a govt catch all supporting them.
U
User62651
Guest
Bad for all concerned, sympathies with all affected. In these situations always wonder why the company can't admit defeat before it goes to the absolute wire leaving staff and customers in the doo-doo, accept they're not going to survive a bit in advance and manage a controlled wind up/cessation - sell planes off, serve notice to quit on shops, forewarn staff of redundancy, stop taking bookings and refund those beyond the date they're winding up etc.
If I were a cynic I'd say CEOs/Directors only carry on like this to intentionally get declared bankrupt so their massive £1bn+ debt gets written off. Maybe I've got that all wrong?
Seems a bit head in sand to me.
If I were a cynic I'd say CEOs/Directors only carry on like this to intentionally get declared bankrupt so their massive £1bn+ debt gets written off. Maybe I've got that all wrong?
Seems a bit head in sand to me.
Govts can not be the backstop for failing businesses though. They have to stand alone. If the govt ploughed money in to keep TC going does it then become a nationalised company?
How big do you have to be before govt steps in to bail a company out? 10 employees, 50, 100, 1,0000?
Big_G
Assistant Pro
Got golf holiday booked for next week with TC, struggling to get alternative flights 
Not happy but worse for all employees who have lost their jobs
Not happy but worse for all employees who have lost their jobs
stefanovic
Medal Winner
I have sympathy for any people left stranded. Hope they get home without much delay. But the simple fact is that we do need to stop flying in order to help save the planet.
Dare I ask what you are doing to help save the planet, or is climate change just a Chinese conspiracy?
I stopped flying over 12 years ago and I've reduced my car journeys by half. I also intend to eat very little meat and switch on my boiler only in very cold weather.
Dare I ask what you are doing to help save the planet, or is climate change just a Chinese conspiracy?
I stopped flying over 12 years ago and I've reduced my car journeys by half. I also intend to eat very little meat and switch on my boiler only in very cold weather.
fundy
Ryder Cup Winner
SocketRocket
Ryder Cup Winner
I checked out flights to the USA for us recently, we have family there so visit often. Flights were the cheapest I have seen them for many years. Maybe its a Brexit bonus.
SocketRocket
Ryder Cup Winner
You probably won't live longer but I bet it will feel like it.
Bunkermagnet
Journeyman Pro
I have great sympathy for the staff losing their jobs, but the management and directors have to take the blame.
The chairman and directors have kept getting their huge bonuses and pay packets even though the share price has bottomed out. They were also prepared to sell out to the Chinese, so why should the UK Govt save them?
The Govt wouldn’t save the steel industry recently, so the holiday co have no chance.
As usual British industry and companies only view the short term and quick gain, and at a time when we will be standing alone that can only lead to trouble.
The chairman and directors have kept getting their huge bonuses and pay packets even though the share price has bottomed out. They were also prepared to sell out to the Chinese, so why should the UK Govt save them?
The Govt wouldn’t save the steel industry recently, so the holiday co have no chance.
As usual British industry and companies only view the short term and quick gain, and at a time when we will be standing alone that can only lead to trouble.
Jimaroid
Journeyman Pro
I agree with the general point that government shouldn't prop up failing companies but the reality is much muddier; many companies are only viable in the first place due to government subsidies and grants. Government accepts a risk that such investments pay off in the longer term through return on investment, economic growth or taxation.
So government is in a tricky position. It is already committed to supporting failing businesses, the question is whether it's cost effective to be doing that at the beginning or end of business lifetime. It's always easier in retrospect, impossible to predict.
Great point made by Simon Calder, travel guru, on R2. Anyone on holiday right now is NOT stranded. Carry on with your holiday, you will fly back pretty much on the day you are supposed to fly back on. There is a lot of inaccurate language being used which will stress people out.
Incidentally, heck of a job by people organising flights back. Hiring planes, pilots, crew. Then coaches either to the airport or from the arrival airport in the UK and onto your correct destination. Impressive logistical operation.
Incidentally, heck of a job by people organising flights back. Hiring planes, pilots, crew. Then coaches either to the airport or from the arrival airport in the UK and onto your correct destination. Impressive logistical operation.
Jimaroid
Journeyman Pro
It's a stark example of the many perils we face in "standing alone" in a globalised world economy.
I'm sure it's going to be spun for political gain in many ways but I think we can all agree it's a disgrace whichever way you look at it.
stefanovic
Medal Winner
maybe you should turn your pc and internet off and stop posting on here
I don't own a PC. I use the internet like many others do in the local library.
