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Thomas Cook, the world's oldest tour operator, suddenly shut down Sunday night, blocking hundreds of thousands of travelers and jeopardizing 21,000 jobs. The 178-year-old British company "had no choice but to be put into immediate liquidation by its board of directors, according to a company statement." , the British government and the Civil Aviation Authority launch their largest peacetime repatriation effort – Operation Matterhorn – to pick up passengers and take them home, the Telegraph reported.
Officials say dozens of charter planes are being sent around the world to bring back their customers, although there are "certainly problems and delays," Secretary of Transportation Grant Shapps told The Telegraph. This effort will last until October 6th and the cost of the customers' theft will be borne by the UK government.
The United Kingdom Civil Aviation Authorities require tour operators to hold an Air Travel Planner License (ATOL), which provides financial protection to customers purchasing a vacation package or flights through a travel agent. ATOL holders are required to pay a fee of £ 2.50 per traveler to a fund managed by Air Travel Trust. This government-imposed travel insurance, introduced since 1973, ensures that customers will be reimbursed, repatriated or reimbursed if a company such as Thomas Cook collapses.
In the United States, by contrast, airlines give customers the option of taking out travel insurance – usually during the ticket purchase process – rather than receiving automatic coverage (as in the case of British travelers). even when these tickets are reserved. by travel agencies. According to the Wall Street Journal, all major US airlines, with the exception of Southwest, require travelers to confirm whether or not to "protect their trip" when purchasing a ticket. However, according to the experts, the language can be misleading and leave loopholes to consumers, even when it is necessary to cover financial failures.
"If it's not written, it's not covered," Journalist Jenna Hummer, spokesperson for the Squaremouth Travel Insurance Comparison website, told the Journal.
Last August, a survey conducted by the office of Senator Edward Markey (D-MA) revealed that major airlines and travel agencies encourage customers to take out travel insurance, which offers "seamless plans with a Limited coverage and a long list of exclusions leave customers stranded. Policies are overrated and details are often hidden, the report said.
When Iceland's low-budget airline Wow Air ceased operations in March, passengers were also stranded around the world. Travelers who did not have travel insurance had to buy flights at their home, although a number of companies offered them "discount fares" at a discounted price. Nevertheless, it is frustrating to think that customers should pay extra money at the unexpected closure of an airline, as was the case recently for low-cost airlines.
As Aditi Shrikant reported for The Goods, the low-cost airlines expanded their services, even though it seemed financially difficult: "Historically, European flights were sold through tour operators, much like bus tickets. But when tour operators became obsolete, airlines had to restructure. This is why Monarch and Air Berlin no longer exist. "
The last major repatriation operation in the United Kingdom took place in October 2017, when Monarch Airlines closed, affecting 110,000 customers abroad. The disappearance of Thomas Cook occurred on a larger scale as the travel company had a larger customer base and worked with affiliated airlines in other countries. Condor, the German carrier of the company, will receive an emergency relay loan from the German government to continue to fly, AFP reported.
While these rescue efforts are underway, Thomas Cook's sudden drop suggests that the future of physical travel agencies is not promising. In 2017, nearly 700 of these British agencies closed down and Thomas Cook struggled to keep pace with low-cost airlines and online booking sites, Reuters reported.
The political uncertainty surrounding Brexit and the government's resistance to bailing out society have dealt a fatal blow. It's a messy ending for the home-travel brand, whose slogan – "Do not just book, Thomas Cook it" – has taken on a new meaning at a time when airline cancellations and closures are extremely common.
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