Monarch Airlines ceases trading Wochit

Thomas Cook needs £200m ($250m, €226m) to meet the demands of its banks. If the 178-year-old travel company is unable to find the funding , they could go under. The company's closure would leave thousands of travellers stranded. Taxpayer money would be spent to rescue the passengers from whichever destination they would be stranded at.

Chinese shareholder, Forsun Tourism Group, have already agreed to a deal of £900m ($1,124m, €1,020m) to keep Thomas Cook afloat. However, the company needs £200m more to finalise a refinancing deal without which, the company will go under. 22,000 staff globally and nearly 9,000 staff in the United Kingdom would lose their jobs if the company cannot raise the funds.

If the company does not manage to raise the funds, Sky News estimates that nearly 180,000 British citizens will be stranded in foreign countries. Thomas Cook operates in 16 nations serving nearly 19m customers per year.

Thomas Cook
Thomas Cook

Air Travel Organiser's Licence scheme (ATOL) ensures that if Thomas Cook does shut down, travellers will remain safe. ATOL policy ensures that those who have not embarked on their journey will get refunded. Those travellers who might get stuck abroad will get accommodations and an alternative return plan.

When Monarch Airlines collapsed in 2017, the UK government organised a rescue operation for all passengers left stranded. A similar operation will mean that millions of pounds of taxpayer's money will get spent on the operation.

Thomas Cook meanwhile, has assured passengers that flights and holidays are functioning as usual. Those who have deposited money for holidays remain skeptical.

According to BBC, the company registered a loss of £1.5bn ($1.8bn, €1.7bn) in the first half of the year. The company blamed the losses on the heatwave that struck the UK, the impending Brexit and political unrest in countries like Turkey. Cheaper deals from budget travel agencies and airlines have also played a role in the company's losses.