LONDON - Britain's Thomas Cook is in talks with the government and potential investors about a last-minute rescue deal to fend off a corporate collapse that would send shockwaves well beyond the travel sector.
More than 20,000 jobs would be at risk if it collapses, while tens of thousands of travellers would be left stranded. The Transport Salaried Staffs Association, which represents Thomas Cook staff, appealed to the government to step in with"real financial support". "The company must be rescued no matter what. No British government in its right mind would countenance the loss of so many jobs and the prospect of just one major travel operator - TUI - controlling the mass market."
Were Thomas Cook to fail to find the funds it requires, it could be put into administration, a form of creditor protection that often precedes bankruptcy. The British government and the airline regulator have already drawn up plans in case they need to step in to bring customers home. But the fallout from any collapse would go far beyond the interrupted holidays of its customers.