The Thomas Cook Group has collapsed and gone into administration.
It was unable to secure an additional £200m in finance and by mid afternoon on Sunday preparations were well underway to send empty aircraft from the U.K. to pick up stranded passengers.
The U.K. bankruptcy and administration system is relentless and ruthless once the rules of liquidity are applied and there is little hope of a rescue.
The CAA announced trading had ceased ‘with immediate effect’.
Some 9,000 UK jobs have been affected along with thousands more around Europe, never mind the local businesses that depended on Thomas Cook tourists for business.
The collapse is the largest airline failure in British history and one of the largest to have affected Europe.
Condor’s position is now precarious and up to German authorities to manage.
Thomas Cook has been in dire financial straits for years, barely getting by at times and carry ridiculous levels of debt long seen as unsustainable. However it had acquired a belief that it was too big to fail but clearly the banks have had enough.
A write down of £1.5 billion over the MyTravel business was a serious mistake early this year leading to a massive loss and a share value collapse.
Add to that the serious damage caused by Brexit, and serious competition with minuscule margins and the whole business was holding on by a thread for the last three years.