UK travel firm Thomas Cook has asked the British government for financial aid to fend off collapse, British media reported on Saturday.

The decision to request a state bailout followed a threat by its bankers RBS and Lloyds to pull out of a 900 million-pound (€1 billion, $1.1 billion) recapitalization plan, according to the Financial Times (FT).

The country's second-largest travel operator has not commented on the reports or whether it could go out of business as early as this weekend.

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If the travel agency goes into administration — a form of creditor protection that often precedes bankruptcy — around 150,000 British holidaymakers will be stranded abroad. That could potentially trigger the UK's largest repatriation since World War II.

Impact could be wider

In total, some 600,000 holidaymakers from markets including Germany and Scandinavia could be stranded.

The firm's collapse would also prompt thousands of job losses; it employs 22,000 staff worldwide, including 9,000 in Britain.

Thomas Cook has struggled in recent years under intense competition in popular destinations, high debt levels and an unusually hot summer in 2018 that reduced last-minute overseas bookings.

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World Economic Forum concerned about overtourism Global tourism on the rise WEF's latest Travel and Tourism Competitiveness Report (TTCR) ranks 140 nations on their relative strenghts in managing tourist inflows. International arrivals surpassed 1.4 billion in 2018 globally, challenging many nations' infrastructure capacities.

World Economic Forum concerned about overtourism Japan tourism blossoming A regional breakdown of the WEF report reveals that Japan remains the most competitive travel economy in the Asia-Pacific region, ranking 4th globally. It's witnessed a boom in foreign tourist arrivals. China for its part remains the region's largest tourism economy.

World Economic Forum concerned about overtourism Everglades and much more The United States is the top scorer in the Americas, toppling the UK from fifth place. The report says the world's largest economy has proven highly competitive in managing regional tourism. The nation's travel sector accounts for 20% of global GDP generated in the sector.

World Economic Forum concerned about overtourism Spain claims victory Six of the top-10 scorers come from Europe/Eurasia. Spain leads the table, followed by France. The WEF ranking has Germany in third position, confirming its role as western Europe's largest travel economy with an advanced hotel and traffic infrastructure to its credit.

World Economic Forum concerned about overtourism Floating toward unsustainability? Some nations are fast approaching a tipping point when rising tourism is not met with sufficient management capacities. Overcrowding can become dangerous, and there's a backlash from many residents who feel their way of life gets increasingly disrupted by tourists. Author: Hardy Graupner



Britain's exit from the European Union, initially scheduled for March 29 but delayed, prompted tens of thousands of tourists to put off their holiday plans.

Thomas Cook had requested an extra 200 million pounds from stakeholders to finish a restructuring plan agreed with its Chinese shareholder Fosun last month.

The FT, citing two people briefed on the situation, said the firm had been locked in talks with "multiple" potential investors but had failed to agree a final plan.

Hedge fund 'pulled out'

Sky News reported that the hedge fund CQS Management had walked away from the rescue deal.

Several UK media outlets, meanwhile, speculated that ministers were unlikely to come to the travel agency's aid.

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The British government and airline regulator have already drawn up plans in case they need to step in to bring customers home. But the fallout from any collapse would go far beyond the interrupted holidays of its customers.

The big tourism economies of Spain, Greece and Turkey could be affected, along with its major shareholders and lending banks.

Two years ago, the collapse of Monarch Airlines prompted the British government to take emergency action to return 110,000 stranded passengers, costing taxpayers some 60 million pounds on hiring planes.

Normal operations

Responding to concerned customers on Twitter on Saturday, the company said it was still "operating as normal."

Founded in 1841 with a local rail excursion in Britain, Thomas Cook runs hotels and resorts, airlines, cruises and hundreds of high street travel agent stores. It operates in 16 countries and serves 19 million customers a year.

mm/jlw (AFP, AP, dpa, Reuters)

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