Eddie Mair 4pm - 7pm
How Much Trouble Is Thomas Cook In? A Travel Expert Explains
21 September 2019, 17:12
Thomas Cook's banks are demanding £200m. How likely are they to get that cash injection and, if they don't, how might that affect holidaymakers?
Independent travel expert, Frank Breheny, joined Ian Payne to discuss just how much trouble Thomas Cook is in.
Frank said: "This weekend, we've seen them ask for £200m from the UK government.
I have to say, I think that's unlikely because, for example, the government didn't provide for Carillion or British Steel.
So I'm pretty sure they're not going to break that precedent."
Frank said we'll have to wait over the weekend to see if they can secure that funding from other investors.
Ian asked: "If there's no government bailout, do you think those holidaymakers might be in trouble and they'll have to be rescued, as it were?"
Frank said if they can't secure the funding, it "may" be quite difficult for Thomas Cook to continue.
In which case, the consumer financial protection which is embodied into every package holiday will kick in.