Thomas Cook collapses blaming Brexit. When will the leavers admit they've made a mistake?

[JustOneLastThing]

Another one bites the dust. Boris is silent. Thomas Cook have blamed Brexit uncertainty. 9,000 UK jobs lost. All for blue passports and 'sovereignty'. How many more companies will keel over because of this?

Thoughts? Any brexiters want to give me their views?

Or it's the canary in the coal mine. First one of many companies to fold.

Two French airlines in the bankruptcy courts this month;

9 Sept 2019 -
^"13,000 passengers stranded after French airline goes bankrupt.
France's second-largest airline Aigle Azur has gone into receivership after filing for bankruptcy, following years of losing millions of euros."^

www.business-standard.com/article/pti-stories/13-000-stranded-after-french-airline-collapses-official-119090900635_1.html

20 Sept -
"French airline XL Airways has declared insolvency, citing “great financial difficulties” and stopped selling tickets, in the latest casualty to hit the French airline industry."

aviationweek.com/awincommercial/another-french-carrier-falters-xl-airways-declares-insolvency

"Feb 2019 Another German airline goes bust."

"The country's third airline to collapse within 18 months, Germania filed for insolvency after plans to grab market share backfired. It joins a lengthening list of sector casualties in Europe."

www.handelsblatt.com/today/companies/germania-bankrupt-another-german-airline-goes-bust/23952226.html?ticket=ST-17572032-6BTXlJiOb1UDh29JT3nz-ap5

But Neckermann Reisen (the German arm of TC) has also gone bust, so I don’t see how it can be related to Brexit.

I've been wanting to book a holiday to Europe for the past couple of years but have held back as I don't know what the scenario will be after Brexit and they keep moving Brexit.

Seriously? There’s been ample opportunity to book a holiday in Europe since the 2016 referendum

I don't think it is linked to Brexit. Hopefully it might be linked to people realising the environmental impact of flying. But actually it's probably down to the ease of booking holidays via the internet; a bit like shops closing because people are shopping on-line.

As someone explained it : TC had a lot of debt repayments. There was no money for any type of restructuring their business model and moving into the 21st century.
Weak pound (only link to Brexit) also lead to fewer profits, if any! It really was only a matter of time.

Isn't aviation fuel paid for in dollars? With the £ in decline against the $ that will have pushed costs up.

For a business model that apparently is out of date because people all book independently via the internet, there are an awful lot of people caught up in it. So it must have been and acceptable way of doing things to them

I was on a flight Paris to LA this morning which was delayed as they were literally pulling people of the plane who had booked with TC. Those that left yesterday arrived with none of their hotel bookings honored after the 1st night.

I felt so sorry for them.

In 1984 the pound was almost at parity with the US Dollar at GBP = 1.06USD.

TC did not go bankrupt in 1984.

So must be other reasons. Online bookings, same old boring packages, etc.

Whilst the downfall of Thomas Cook is clearly multifactorial, the fall in the value of the pound, which is due to brexit, probably compounded the problem. We have found things much more expensive abroad and have limited our trips compared to our pre brexit vote times. Many friends have also changed holiday habits so am sure brexit has a part to play although it does seem a coverall excuse these days. I voted remain

Just peeping in to see if any Leavers have admitted a mistake yet...

Article :companies~collapsed~brexit

In 1984 the pound bought 1.06 US$. Did TC go bankrupt then? No.

Just peeping in to see if any Leavers have admitted a mistake yet

Nope. Not me.

In 1984 the pound bought 1.06 US$. Did TC go bankrupt then? No

Well, the £ / $ rate didn't stay that low and oil prices were super low too.

No one has said Brexit was the only cause but a factor, what is certain though is we will never be told the exact reasons.

Looks like a Spanish/Turk consortium wanted to rescue TC in an 11th hour bid, the Govt turned it down.

Perhaps for political reasons?

@Jagas

Oil prices are low at the moment by historical standards. Exchange rate will have been a factor fir sure, but other reasons too like, online booking, etc.

Whatever the reasons it is bad news for the Employees. Worse to come maybe if UN no deals?

Yes, agree, we can argue the blame game but at the end of the day, 150,000 people have had their holidays ruined, 22,000 lost jobs and 850,000 holidays now won't happen.

Not to mention overseas hoteliers who will be badly affected as they may well not be paid.

For a business model that apparently is out of date because people all book independently via the internet, there are an awful lot of people caught up in it. So it must have been and acceptable way of doing things to them.

Too many customers were booking Thomas Cook flights online (through Expedia etc.) but the company had nearly 600 high street shops. Just caught the end of a news report on LBC - too many flights being offered at ridiculous prices (the market is saturated) - not enough hotels.

"Tim Jeans, a former managing director of Monarch who left long before its collapse, told BBC 5 live Thomas Cook had "an analogue business model in a digital world"."

jasjas - I agree. Boring old packages maybe, but many people had saved up and were looking forward to their holiday - all gone. Many people enjoyed their work with TC - finished and with the worry of finding another job.

Non one has said that Brexit is the basic cause, because we can see there are a number, but Brexit was probably the final straw. Leavers seem to have the greatest difficulty with accepting this.

@Jagas

The repatriation cost is estimated at 100 Million. The TC fats cats should be made to pay towards that, but there is little chance as directors are not liable.

Must be a nightmare for families with young children.

In 1984 the pound bought 1.06 US$. Did TC go bankrupt then? No.

In 1984 Wham! were number one, Band Aid was just about to happen, and I was looking forward to the SinclairQL being launched.

Why it's almost like it was 35 years ago and so far away in time that comparisons are not only impossible, but asinine.

Business generally do not like uncertainty, and the constant pushing Brexit further away adds to the uncertainty.
I went away this year for 2 weeks (outside of Europe). Why would I choose Thomas Cook?
I didn't. I booked flights, hotels, transfers myself over the internet.
Complicated by the fact it was a 2 center holiday, so 2 hotels, 4 flights, and 4 transfers.

Must be a nightmare for families with young children

Not half as much of a nightmare as the families with young children who've spent the last years worrying whether they will still have a home in the UK.

lonelyplanetmum So do we blame the EU for any companies going bust before the Brexit vote or doesn’t that matter?

No the internet and internet holidays killed THomas cook. No one needs travel companies anymore.

MrsTerryPratchett Do you think that’s a new thing? We had them thoughts during many recessions and the more recent financial crash, ( were we in the EU then ? )

Redrosesandsunsets Unfortunately the internet has been good for somethings, but very bad for a lot of other things