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Collapse of Thomas Cook

What's your thoughts and have you had a holiday booked?

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Paul Marsh23/09/2019 09:45:15
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As it's aviation related, today, 23rd September Thomas Cook entered voluntary liquidation. And with it all the aircraft they fly have been impounded, starting the biggest repatriation effort since WWII.

Edited By Paul Marsh on 23/09/2019 09:51:49

Nigel R23/09/2019 09:57:35
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It's difficult making an airline pay at the best of times. Very low profit margin (a few %) and they rely on a high volume of business.

Don Fry23/09/2019 09:57:38
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Good riddance, the last time I used them, flying back from Jamaica, the flight stopped in Manchester, and then on to London. Another party of customers, stranded, were in Manchester, so they threw us off, cheaper to upset us, coached us eventually to London. I missed, therefore my connection to France, and paid out big money for a last minute job to get home, 24 hours late. Compensation, not our problem.

Sweetness was a few years later, case law was changed and I sued them and won. And they were slow then to pay up. Good riddance.

Denis Watkins23/09/2019 10:34:49
3934 forum posts
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Posted by Nigel R on 23/09/2019 09:57:35:

It's difficult making an airline pay at the best of times. Very low profit margin (a few %) and they rely on a high volume of business.

True Nigel

The figures quoted for 22 million passengers was a profit of £11 for each one carried

Mowerman23/09/2019 11:23:22
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Another big company going bust, leaving their customers, staff and suppliers in the mire, It would be interesting to see how big and healthy the 'bosses' pension funds are despite the company's losses.

Peter Miller23/09/2019 11:32:13
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I heard on the radio this morning that the current Managing Director had been paid 5 million pounds and that the recent bosses had had 30 million between them.

Steve J23/09/2019 11:59:29
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Good businesses succeed and bad businesses go bust.

My sympathies are with the employees (below senior manager) who have lost their jobs.

Steve

Dai Fledermaus23/09/2019 12:15:25
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We to are due to fly to Kos in a few weeks time. Not a TC package deal but our flights were wth Thomas Cook. It's all in the hands of our travel agent now who are trying to find alternative flights. We can at least get a full refund if this alternative doesn't work out.

john stones 123/09/2019 12:27:07
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Look at the wages the higher ups paid themselves, one received £2.9m bonus from a failing company ? No need for him to sign on then.

wingcoax23/09/2019 12:44:45
52 forum posts

I always thought bonuses were paid for success. Apparently they are now for turning up at the office.

Paul Marsh23/09/2019 12:44:57
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3740 forum posts
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Problem is the fat cats squeezing the company dry when its losing money. Bonuses should go on profit and not when in a loss. Mad really.I reckon over the next few years, companies of this nature will be less and less as they fall on the wayside due to inefficient business models and changing customer demand.

kc23/09/2019 12:46:54
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Directors of companies that go bankrupt should surely have to pay back anything they have received over the Minimum Wage!

Don Fry23/09/2019 12:51:48
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The reward package paid to the board members is commensurate with the rare skills they bring to the company, and the extreme shortage of such skills.

john stones 123/09/2019 12:58:04
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Yep, takes some skill to pocket a big bonus, leading a company to fail, hadn't noticed the lack of talent around though, seems to be a common event.

kc23/09/2019 13:05:02
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169 photos

Don said " The reward package paid to the board members is commensurate with the rare skills they bring to the company " .....................

Paying them the Minimum Wage seems over generous to me!

Nigel R23/09/2019 13:37:26
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"Directors of companies that go bankrupt should surely have to pay back anything they have received over the Minimum Wage!"

Hence the invention (probably by some rather rich jolly old boys) of the public limited company, wouldn't want the creditors getting their grubby mitts on ones earnings when one's latest wheeze goes wrong.

Jon - Laser Engines23/09/2019 13:46:22
4896 forum posts
186 photos
Posted by john stones 1 on 23/09/2019 12:27:07:

Look at the wages the higher ups paid themselves, one received £2.9m bonus from a failing company ? No need for him to sign on then.

Its always the way though isnt it. All these massive companies go bust and yet the big boys at the top always seem to leave with a bonus of millions of pounds. I wish i could get a million pound bonus for being totally incompetent.

Erfolg23/09/2019 13:50:41
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11430 forum posts
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A month or so back I went to Cyprus with them, it was an excellent holiday. I cannot complain.

It seems that once no one wanted to take over the business, it was pretty certain that it would go under. That is my opinion, as who would book with them in the immediate future. A cash injection would just delay the inevitable. Taking over by the government would have resulted in either the packages becoming so expensive we all would look else where, or us the taxpayer would be subsidising holidays, if we did not bags a couple of holidays for ourselves.

I can see that the devaluing of the pound would have hit the bottom line. I am not sure that issue of leaving the EU is relevant, in that it does not affect my decision to take a foreign holiday in or out of the EU.

As to management, obviously they failed to implement actions to ensure the viability of the business. The salaries and apparent bonuses appear to be a total mismatch.

Considering the employees, who cannot have sympathy, as few can survive a month without pay, without great pain. Then there is the issue of finding alternative work.

On the brighter side there will now be a hole in the market, who will fill it. Can someone fill it immediately? Or is the bigger picture other companies may be in a very similar position?

john stones 123/09/2019 13:54:37
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Posted by Jon - Laser Engines on 23/09/2019 13:46:22:
Posted by john stones 1 on 23/09/2019 12:27:07:

Look at the wages the higher ups paid themselves, one received £2.9m bonus from a failing company ? No need for him to sign on then.

Its always the way though isnt it. All these massive companies go bust and yet the big boys at the top always seem to leave with a bonus of millions of pounds. I wish i could get a million pound bonus for being totally incompetent.

Yep just form another company, or get their snout in the trough elsewhere, the "little people" will have to make do and mend, how have some of these people avoided jail ?

David P Williams23/09/2019 13:58:16
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862 forum posts
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I worked for TC for around 20 years, taking a redundancy/early retirement package in 2001. My wife and I live on TC pensions (although I have the State pension too now), so I'm a little concerned at the moment. The pension fund is well funded, and the independant trustees should protect pensions in payment, but it's all still a bit worrying.

I used to work for the Financial Services part of the company, primarily Travellers Cheques (remember them?) which was sold to Travelex around the turn of the century. The travel part of the company hardly ever made money, it was always bailed out by the income from the Travellers Cheque float - the money held from the sale of the cheques until it had to be paid out when they were cashed. As lots of cheques never got cashed, or got kept for the next holiday, and Cooks had been selling them for a very long time, this float was many millions and generated a large amount of steady income in interest. Lots of money was also made from buying and selling foreign exchange. All this was lost when this part of the company was sold.

I was transferred to the travel division and worked on the online booking website. The travel dinosaurs thought I couldn't be any use as I didn't have 20 years experience in travel. They were still focused on having the biggest high street shop chain; grudgingly accepted that they needed a call centre for phone bookings, but only tolerated Thomascook.com because the dotcom boom was still underway and they thought they could float it with an IPO and make squillions - the idiots were probably already ordering their Ferraris.

I was a pretty senior manager (in the top 40 worldwide), but an IT techie, so how could I possibly know how to run a travel company. We eventually ran out of patience with each other and I was happy to walk away with a decent deal.

It's been really sad to see them continuing with this 1980's attitude to how a travel company should operate and it's all finally caught up with them. The real culprits are not the current management, but the late 90's/early 2000's lot (I know who you are you idiots!)

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