Thomas Cook - Supporting Employees and Consumers

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On the 23rd September, Thomas Cook ceased trading and was placed into compulsory liquidation. All flights were cancelled, and all of the company’s retail shops were closed. The Government is aware that this is a tough time for both customers and staff at Thomas Cook.

The Government made the decision not to bail out Thomas Cook because the company had been making a loss and did not present a credible business plan that would warrant spending large amounts of taxpayers’ money. The Government concluded that this would have postponed the inevitable, incurring similar repatriation costs in the future in addition to the mammoth bailout fund.

In the Commons yesterday, Transport Minister Grant Shapps assured the House of the health of the aviation industry:

“The loss of an iconic British brand with a 178-year history—one of the oldest travel companies in the world—is an extremely sad moment. However, this should not be seen as a reflection on the general health of the UK aviation industry, which continues to thrive. Passenger numbers are actually up, and people are traveling more”

The Government is now focussed on supporting all of those affected by the company’s collapse and has gone about swiftly launching a cross-departmental effort to protect the former staff members and customers.

Below is the Government’s advice to both staff and customers of Thomas Cook.

For customers:

  • The Transport Secretary Grant Shapps announced on Wednesday that the Government and the UK Civil Aviation Authority (CAA) has hired dozens of chartered planes to help complete the largest peacetime repatriation undertaken by the UK Government since the Second World War. For those without ATOL protection, this will come free of charge to all those abroad due to come back to the UK. However, there are not enough commercial flights available to make sure that all customers can be repatriated within a week. Some passengers may need to book their own flights and then reclaim the costs. To those not covered by insurance, the Government has made accessible a hardship fund to cover the cost in reasonable cases.
  • The Government has written to the Association of British Insurers (ABI) and UK Finance to ask for them to work quickly to provide assistance to, process the claims of, and help with the payments of individuals of both staff and customers.
  • A cross government Task Force is also being established to address the impact on employees and local communities

People booked about to travel with Thomas Cook

  • There will be no further outbound flights
  • ATOL protected customers will be refunded in line with the scheme
  • Those not covered by ATOL may be able to seek a refund through their credit or debit card company, or some travel insurance policies

For staff:

  • DWP’s Job Centre Plus Rapid Response Service is ready to offer advice, identify transferable skills, and help those made redundant to access any benefits they may now be entitled to.
  • Redundancy Payment Service – in the event of any redundancies, there are special arrangements organised by the Insolvency Service awarded to those who are owed pay.
  • Staff with specific requirements should visit thomascook.caa.co.uk

 

I hope that this advice is of use to travellers and staff members. If you require more information, or further consultation about your specific case, please use the links and numbers below.

Useful contacts/additional assistance

 

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