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Travel Company Thomas Cook Collapses, Stranding Customers Worldwide

The world’s oldest travel company, UK-based Thomas Cook—which operates hotels and resorts around the world as well as its own airlines—all but collapsed this week, cancelling all of the company’s bookings (including flights and holiday packages), and closing its retail locations. The shutdown left 600,000 customers stranded, and Reuters called the effort to get passengers home “the biggest ever peacetime repatriation,” with 64 flights bringing 14,700 back to the United Kingdom on Monday, and hundreds of thousands more are expected to be transported over the next two weeks. The collapse also leaves more than 20,000 employees out of work.

Thomas Cook was buried in debt, partially due to its reluctance to adapt quickly to online travel booking and worries about Brexit, and lenders stopped funding the company. The company had requested £900 million ($1.1 billion) from its creditors and the Chinese company Fosun, Thomas Cook’s largest shareholder, but the deal did not materialize. According to The Guardian, as the company slipped further into debt, payment card companies like American Express and Barclays also limited cash collections and payment services to mitigate harm from a collapse.

The UK government also denied Thomas Cook a last-minute $310 million bailout, partially because, as UK business secretary Andrea Leadsom said, “Thomas Cook is sitting on trying to service £1.7 billion [$2.1 billion] of debt, and it would have been a waste of taxpayers’ money to be throwing good money after bad.” Reportedly, the Turkish government and some Spanish hotel businesses offered to front £200 million ($247 million) to save the company if the UK government would guarantee the investment. But the UK government rejected the deal, saying that the amount would not have sustained the company for more than two weeks.

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Leadsom said that she also asked for an expedited investigation into the corporate collapse by the UK’s Insolvency Service—a branch of the Department for Business, Energy and Industrial Strategy that handles corporate liquidations and personal bankruptcy cases, including investigating companies’ bankruptcies for misconduct.  Others raised the issue of company higher-ups earning millions while the company sank, with Prime Minister Boris Johnson saying, “I have questions for one about whether it’s right that the directors, or whoever, the board, should pay themselves large sums when businesses can go down the tubes like that.” The UK’s Financial Reporting Council said that it may investigate Thomas Cook’s auditors, PwC and EY, in relation to the company’s collapse.

For stranded passengers, the UK government and other airlines are stepping in to ensure everyone can make it home. In 2017, when UK company Monarch Airlines went under, the government brought all passengers home, and it appears they will do the same in this case. Of the 600,000 stranded customers, 150,000 to 160,000 are British, and UK foreign secretary Dominic Raab told the BBC that the country will be arranging alternative flights for those travelers. Customers with tickets on Thomas Cook subsidiary airline Condor will be fine, as Condor will continue to function after a £380 million loan from the German government.

Others will be able to take seats on flights provided by a variety of airlines, including US-based provider Atlas Air, British Airways, Lufthansa, and possibly Malaysian Airlines, among others.

Regarding payment, things may get more complicated. According to the BBC, UK travelers who booked a package trip are covered by the Air Travel Organiser’s Licence (ATOL), an insurance program that will cover the cost of repatriating travelers.

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Those who just bought flights will reportedly have to appeal to their travel insurance or credit card companies for refunds. Hotels and resorts are also reportedly asking guests who booked through Thomas Cook to pay out of pocket for their stays, as the company’s payment is in question.

The Five Most Treacherous Airports to Land a Plane

Flight, a movie starring Denzel Washington as a pilot who makes a harrowing landing to save a planeload of a passengers, will open nationwide on November 2. While the inspiration for the Robert Zemeckis-directed film was certainly Sully Sullenberger’s famous landing in the Hudson, the movie is fiction and fortunately threatened the lives of no fliers.

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But even though the miracle of flight happens thousands of times everyday across the globe, it remains dangerous.

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Just check out what pilots had to confront one day in Spain.

To former pilot Guy Hirst, who spent 34 years with British Airways, the five scariest airports to land a plane at are Mexico City, Hong Kong, Salzburg, Gibralter and New York’s JFK. Each poses its own challenges — from visibility and wind conditions to air-space restrictions and nearby mountains — but when he thinks about each of these locations, he just seems happy to be retired.

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How Much Airport Security Is Too Much?

Martin Broughton, the chairman of British Airways, has had it up to here with the horse-and-pony show of airport security requirements required for all European flights headed to the United States.

“America does not do internally a lot of the things they demand that we do,” Broughton said in comments quoted by the Financial Times and confirmed by British Airways.

“We shouldn’t stand for that. We should say, ‘We’ll only do things which we consider to be essential and that you Americans also consider essential.'”

Specifically, he was referring to shoe and laptop removal requirements — “redundant” practices he had a few other choice phrases for.

Chairman Martin Broughton accused the U.S. of demanding “completely redundant” security checks at airports, such as removing shoes and separate examinations of laptop computers.
Europe should not have to “kowtow to the Americans every time they want something done” to beef up security on U.S.-bound flights, Broughton said.

Chairman Martin Broughton accused the U.S. of demanding “completely redundant” security checks at airports, such as removing shoes and separate examinations of laptop computers.

Europe should not have to “kowtow to the Americans every time they want something done” to beef up security on U.S.-bound flights, Broughton said.

He won support Wednesday from the owner of Heathrow airport and the British pilots’ union as well as several European airlines and security experts on both sides of the Atlantic.

It isn’t just European pilots who are on his side. Many of the major carriers across the pond gave their seals of approval to Broughton’s frustration.

security experts and several European airlines, including Virgin Atlantic, Iberia and Finnair, welcomed Broughton’s comments, saying it was time to reevaluate the many layers of time-consuming airport security.

“We need to keep passengers safe, but there’s also a whole bunch of security rules that could be eased out,” said Chris Yates, an aviation security analyst in London.

The requirement to remove shoes for screening, for example, was “the knee-jerk reaction after Richard Reid.” The newest metal detectors would sense any metal such as wiring in shoes, he contended.

Many of the security rules are in place because of history rather than real risk, agreed Todd Curtis, a Seattle-based security expert at airsafe.com.

As with all risk management decisions — and, at its core, that’s what all security comes down to — Curtis’ point is the issue at hand: how do you ensure that commercial airlines can be as safe as possible but at the same time not impose onerous safeguards that impair their ability to succeed as commercial ventures?

The safest way to make sure no planes explode would be to ban air travel. No planes would ever be hijacked again. Also, oh yeah, no one would ever make another dime in the airline industry and we would all be doing a lot more driving.

The other extreme would be to have no security at all. There would be no lines to wait in before you board. No privacy-invading x-ray screening. The whole process of flying would be streamlined and the airport would become an ideal environment to make money from consumers. But then planes would likely be dropping out of the sky every few weeks.

There needs to be a balance.

And with a sensitive, hot-button issue like airport security — which is essentially the lynchpin of America’s “domestic war on terror” — the pendulum between safety and convenience will likely always sway along with the news. The more terrorist plots we see, particularly if ever there is another, major successful event, the more security we will likely see. The fewer events we hear about, the more complacency will set in and the more people will covet convenience.

Apparently some European heads of industry think the pendulum has swung too far in direction of safety — or more accurately, they think the “for-show” protocols that were once mere annoyances have turned into business-harming problems that need to be fixed.

Time can do that.

In related news, a humorous new website called Fun With TSA that I bet Broughton would enjoy is poking fun at some proposed, in-flight TSA safety restrictions. Apparently the aviation watchdog has suggested that it may be wise to not allow passengers to “leave your seat during the last hour of your flight, use electronic devices, or have anything at all on your lap.”

And while that would indeed be very annoying, here are two of their suggestions on fun ways you can pass the time during the last hour. There are eight other ideas if you click through to the Fun With TSA site.

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Be the person on your flight to suddenly shout out “Marco!” during that last hour when others are looking for things to do.  It might take a few tries, but eventually someone somewhere on the plane will respond with a “Polo!” if for no other reason than to shut you up.  Entertainment achieved.

light_wave

This can be every bit as much fun as when people do “the wave” at a stadium, only there will be no standing up here for obvious reasons.  Instead, simply power on your overhead light, wait for the people in front of you to power on theirs, then turn yours off.  A truly beautiful spectacle once it gets going.