Prime Minister briefed on Thomas Cook’s troubles
Prime minister David Cameron has asked to be briefed on what's happening at troubled tour operator Thomas Cook amid fears that its collapse could cost the taxpayer millions of pounds.
During Prime Minister's Question Time in the House of Commons yesterday, David Cameron said: "I've obviously asked the business department to give me a report on what is happening in terms of Thomas Cook, because I think it is important to make sure this business is in a good, healthy state."
His comments came amid speculation that Europe's second largest tour operator, which carries 22m passengers a year, is "too big to fail".
The collapse of a licensed tour operator the size of Thomas Cook would take a devastating toll on the Air Travel Trust Fund, which is already £42m in the red. As the ATTF is propped up by Government guarantees, there has been speculation that the Government will intervene to ensure Cook gets the financing it needs to stay in business.
The Civil Aviation Authority, which is responsible for the ATTF, refused to saywhether it had held talks with Thomas Cook.
A spokesman said: "We do not discuss the financial position of any ATOL (licence) holder. I am happy to confirm that Thomas Cook still has an ATOL. Customers should not be influenced by speculative comments in the national media."
Thomas Cook's shares have recovered slightly after nosediving on news that it had asked its banks for a further £100m funding to see it through the quieter winter months.
Interim chief executive Sam Weihagen has sought to reassure customers that the company's future is secure and that the company will report an underlying profit when it releases its end of year results, the announcement of which has been delayed until the conclusion of talks with its lenders.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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