Originally Posted by
diffident
Indeed, February would be the best month for company wind-ups in the travel industry, but it will boil down to cash-on-hand. The CAA has to be satisfied that the company has the cash reserves or ready access to contingency funds to get it through the whole of the licence period, not just a stop-gap temporary solution to allow it to limp on until Feb.
It's very much a binary choice for the CAA.... Do you have the dosh to keep going for the duration of your ATOL licence? Yes or No?
There are no cash reserves - TC need £150m just to see it through the winter season -
The re-financing rescue is not as yet, a done deal - TC needs £750m to get it's head above water -
The annual renewal of the ATOL bond payment of £100m is due soon -
That money is held as an assurance if the company becomes insolvent it is there to pay out the for repatriation flights, and settle claims of the affected holidaymakers/passengers either abroad or have booked holidays in advance -
No ATOL bond, then no licence will be given by the CAA to sell package holidays and fly planes (nothing to do with the AOC)
No licence - then the airline and it's travel business has to be suspended and likely wound up.
It's a brutal business and TC in hindsight should not have bought/merged with the Airtours/My Travel Group