Thomas Cook collapsed Monday, leaving hundreds of thousands of people stranded around the globe.

The UK's Civil Aviation Authority (CAA) said Britain's oldest travel agency had now ceased trading after 178 years in business.

In a statement, Thomas Cook said it was unable to reach an agreement between its stakeholders and proposed lenders, adding that "it had no choice but to take steps to enter into compulsory liquidation with immediate effect."

The travel agency said that due to the scale of the situation, "some disruption is inevitable" but that the Civil Aviation Authority "will endeavor to get people home as close as possible to their planned dates."

"Thomas Cook has ceased trading so all Thomas Cook flights are now cancelled," the travel company stated.

Thomas Cook UK confirmed the cancellation of all flights from British airports on September 23 and September 24, while in Germany Thomas Cook flights "are not guaranteed" on these dates.

The reasons behind the collapse are manifold, from uncertainties arising from Brexit to competition from low-cost carriers and the rise of online travel purchasing.

Last minute talks

Peter Fankhauser, the company's chief executive, apologized on Monday, adding that all attempts had been made to avoid liquidation. The operator had been looking for €226 million ($250 million) from investors to save it from insolvency.

"We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook's future," said Fankhauser. "Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable.

"It is a matter of profound regret to me and the rest of the board that we were not successful. I would like to apologize to our millions of customers, and thousands of employees, suppliers and partners," he added.

With hotel services and flights canceled around the world, hundreds of thousands of travelers were stranded

Plans to return stranded holidaymakers

Some 600,000 people, including 140,000 Germans and 150,000 Britons, are estimated to be on holiday with Thomas Cook and are currently stranded abroad.

Its four airlines will be grounded and more than 20,000 staff worldwide are expected to lose their jobs. All Thomas Cook's retail shops have also closed.

The UK government and the aviation regulator had drawn up a plan to use other airlines to bring Britons home, triggering the country's biggest repatriation effort since World War II.

British repatriation will take place between September 23 and October 6.

In Germany, one of Thomas Cook's biggest markets, insurance companies will help repatriate customers, according to an official.

German charter airline Condor, which comes under the insolvent travel operator's umbrella, said that it can no longer carry travelers who booked with Thomas Cook companies but that its planes are still flying.

However, Condor advised passengers not to go to the airport until new flights are organized.

The German subsidiary also applied for a €200 million ($219 million) bridging loan from the government, which is being assessed.

Other German tour operator subsidiaries under Thomas Cook include brands such as Neckermann Reisen, Bucher Last Minute, Öger Tours, Air Marin and Thomas Cook Signature. According to their statements, travel sales have also ceased for the time being.

Boris Johnson: No bailout

British Prime Minister Boris Johnson said the UK government should not bail out Thomas Cook, arguing that doing so would create a "moral hazard" because other firms might expect similar treatment in the future.

"We need to look at ways in which tour operators one way or another can protect themselves from such bankruptcies in future," Johnson said. "One is driven to reflect on whether the directors of these companies are properly incentivized to sort such matters out."

While the UK government rejected Thomas Cook's request for a bailout of about £150 million ($187 million/€169 million), Johnson pledged to return stranded British holidaymakers.

Chinese investors 'disappointed'

Thomas Cook declared insolvency after failing to resolve a last-minute rescue deal over the weekend.

China's Fosun Group had led a final bid to save the British firm and said on Monday it was "disappointed that Thomas Cook Group has not been able to find a viable solution for its proposed recapitalization with other affiliates."

In the statement, Fosun confirmed its position remained unchanged throughout the process and extended their sympathy to those affected.

Information for travelers

The CAA has offered advice to passengers who had already booked Thomas Cook flights. "Customers currently overseas should not travel to the airport until their flight back to the UK has been confirmed on the dedicated website."

"Thomas Cook customers in the UK yet to travel should not go to the airport as all flights leaving the UK have been cancelled."

mvb, jsi/ng (Reuters, dpa, AFP, AP)

Touring the Alps - then and now In their ancestors' footsteps The Swiss Grand Tour 2013 aimed to recreate what is seen as the first organized guided tour of Switzerland - and one of the first worldwide - in 1863. Some of the participants - seen here hiking at the Gemmi Pass between Leukerbad and Kandersteg - are descendants of those original tourists from the United Kingdom.

Touring the Alps - then and now Taking notes Luckily, one of the travellers, Miss Jemima Morrell, kept a meticulous and beautifully illustrated diary of the group's travels. Coming from a suitably well-off middle class family near York, she had "done" Scotland as well as London and other places in England. It was now time for an adventure abroad.

Touring the Alps - then and now Hiking in dresses On June 26 1863, the "Junior United Alpine Club" set out from London Bridge station for their three-week journey. Jemima Morell is third from left. In those days, ladies had to wear their cumbersome Victorian-era dresses at all times, and they always had an umbrella at the ready too.

Touring the Alps - then and now The route of 1863 The impressive itinerary took the group across the Swiss and part of the French Alps. And it was by no means a leisurely stroll, with 5 a.m. starts nearly every day. "The awful power of the rocks as we crept under their beetling walls made one tremble," Morrell wrote in her diary.

Touring the Alps - then and now Pioneer of tourism The Swiss Tour of 1863 is often seen as the start of modern tourism. Thomas Cook (1808-1892) from Derbyshire, England started out organizing guided tours in England and Scotland. The Switzerland tours kickstarted Cook's business, although initially, he wasn't interested in profits. He simply wanted people to broaden their horizons.

Touring the Alps - then and now A ticket to ride While there had been some guided tours before 1863, Cook is credited with making travel not only more interesting by providing more guided elements, he also persuaded rail and other transport companies as well as hotels abroad to take Thomas Cook tickets and hotel coupons - one example is pictured here.

Touring the Alps - then and now Guides and 'travelers' checks' In these early days, Cook made most of his money from guidebooks - like the one seen here - and rail timetables. He also invented the circular note - a forerunner to the travelers' check.

Touring the Alps - then and now Poor but beautiful Today one of the most affluent countries in the world, Switzerland in the 1860s was poor with little infrastructure. Morrell remarked on the extreme poverty of the rural population in her diary. Cook's tours made the breathtaking scenery of the Swiss Alps more popular and accessible for travelers.

Touring the Alps - then and now 'Golden age of alpinism' Cook's first tours to Switzerland took advantage of a golden age for mountaineering in his home country. British explorers completed many of the first ascents of several peaks in the Swiss Alps. Edward Whymper is credited with the first ascent of the Matterhorn - seen here - in 1865.

Touring the Alps - then and now Dressing the part The participants of the Swiss Grand Tour 2013 - including Jemima's descendants John Bowes Morrell and Margaret Anne Morrell pictured here on the far left - tried to get a feel for the atmosphere 150 years ago by dressing up in period costume.

Touring the Alps - then and now Taking the waters While this scene looks more like a picture from a modern holiday brochure, it shows the participants of the tour this year having breakfast in the Alps' famous thermal baths in Leukerbad, just like their Victorian-era counterparts, who used to sit in the pool for hours for medicinal reasons, with refreshments served all day. Author: Nicole Goebel



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