Originally Posted by
rog747
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
ATOL has nothing directly to do with the operation of the airline. It has everything to do with cash flow. With Monarch once the license was revoked they had no revenue so the company and the airline couldn’t pay their bills. If TCX have/had sufficient outside revenue or capital they could potentially remain solvent and continue flying, including provide repatriation of holiday makers stranded by the collapse of the holiday arm. Keep in mind TCX have a larger percentage of non package holiday bookings when compared to Monarch, what that number is and whether it is enough I have no clue.