Thomas Cook bankruptcy spurs UK to act

Thomas Cook Airlines in the UK stopped services on September 23 when the struggling tour operator filed for compulsory liquidation.

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The inability to use these grounded aircraft for the 'Operation Matterhorn' repatriation program appears to have spurred the government to act on measures recommended in an airline insolvency review, carried out following the failure of Monarch Airlines in October 2017.

This review, published in May of this year, highlights specific difficulties in the UK with the use of a carrier's fleets in istration to repatriate customers, and recommends the development of a special istrative regime to this measure.

“There seems to be a very strong desire across parliament to do something with the insolvency review,” transport secretary Grant Shapps told the lower house of parliament on September 25.

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He signaled that – while the problem was multifaceted and not simple to resolve – the government would be prepared to introduce the necessary primary legislation.

“[The review] suggested that we should have rules different from the German rules to allow our airlines to trade in istration. That would make repatriation enormously easier, because we could use them.”

Operation Matterhorn required the UK Civil Aviation Authority to build a temporary airline, using extra capacity from other carriers, to bring back 150.000 Thomas Cook engers.

But Shapps points out, "Due to the size, complexity and geographic scope of Thomas Cook's business, it was not possible to replicate the airline's flight program and schedule."

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He says the airline insolvency analysis "provides some useful insights into things that could be done", some, but not all, of which would require primary legislation.

“We can't keep coming back to this situation,” he says. "It's terrible for engers and everyone involved, and there's a problem finding enough aircraft to handle this situation when it happens."

Due to the Civil Aviation Authority's need to focus its efforts to repatriate Thomas Cook engers, participants in the Air Travel Organizer License scheme – which protects customers – have had their ATOL validity extended beyond their renewal date. October 1st to October 25th.

“The extension of the term is possible within our regulations, but it is unprecedented and reflects the exceptional circumstances we find ourselves in,” says Michael Budge, head of licensing operations at ATOL.

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"The extra time will allow the industry additional time to customers through a difficult period and give them the space and time to get things together to meet the of their renewals."

Via - Flightglobal

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