Thomas Cook-2

[diffident]

Originally Posted by Doc Q

Im still confident the government will step in and tide company over, lots of speculation that it will happen

I don't know how many times we are going to discuss this, but the Government will not bail out Thomas Cook Group. Here's why;

1. It would breach EU state aid rules
2. It would open up the government to litigation for NOT bailing out other major British firms in recent memory - MG Rover, British Steel, "insert high street chain name here" and so on and so on.
3. Thomas Cook Group is not critical for continuity of life (unlike the banks). Leisure flights and holidays are deemed luxury and not necessity. That, sadly is the main fact that will stop state intervention.
4. The state has already prepared through the CAA its contingencies for collapse. The CAA is a Statutory Corporation for the Department for Transport. This does not include throwing taxpayers money at a failed business.

I can however, see a very very very slight possibility that the Government through the DfT may provide bridge funding in order for Thomas Cook's UK operations to be wound down in an orderly fashion. The problem with this is what about the Scandinavian operations and the German operations??