Originally Posted by
rog747
If the CAA are doing this now then they have grave concerns about TCK's imminent future - sadly the damage is obvious, but we hope the Company does manage to survive.
No rescue flights are being organised.
Businesses fail because they run out of cash. The share price could sit at 1p as long as the business has cash it will survive. It could well fall into the hands of the hedge funds or its lenders like Debenhams, but that won’t affect holidays people have booked. You can shop in Debenhams today, just as well as you could last year. Same with Flybe. Monarch failed because it’s loses were unsustainable, Thomas cook is still generating a profit from operations, and has in the region of £500m headroom for this winter. It’s winter loses did increase but only by about £70m compared to last year.
Thomas cook, like all tour operators at this time of year is at its peak cash flow. Some people will cancel their trips because of this, but they will lose their deposits and Thomas cook will be able to resell their holidays at a discount while making even more money on it.
I have no doubt Thomas cook will be a very different company in the coming months. But I would be very surprised if it stopped trading altogether.