Riyaz Patel
One of the world’s oldest travel firms, Thomas Cook Group, has collapsed after last-minute negotiations aimed at saving the holiday firm failed.
It puts 22,000 jobs at risk worldwide, including here in South Africa.
It is estimated that at least 600,000 people all across the globe will be affected, forcing governments to coordinate with insurance companies and other airlines to help their citizens return home.
“I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years,” Chief Executive Peter Fankhauser said in a statement released early Monday morning.
Overburdened by a crippling $2.1 billion debt, one of the oldest and largest travel companies in the world entered compulsory liquidation after last-ditch efforts to negotiate restructuring failed.
The company has a history dating back to 1841. It had nearly 22,000 employees serving 19 million customers per year, running hotels, flights and cruises across 16 countries.
How Will It Affect South Africa?
Well, first, South Africa has lost a direct route to the UK.
Thomas Cook had previously operated flights from London to Cape Town during the busy summer season. The route often proved to be cheaper than competing flights.
Secondly, there will be job losses. It has been well-documented that South Africa is home to several Thomas Cook call centres and operational offices.
In addition, the firm has several training programmes in SA that are all set to vanish along with the 180-year-old company itself.
Around 21 000 employment positions worldwide have been lost, and a fleet of 34 planes will now be sold off to other airlines.
Thomas Cook is yet to confirm how many people will actually been affected in South Africa.
