Politics

Thomas Cook boss blames HEATWAVE for firm collapse & apologises for ‘distressing’ millions of customers – but doesn’t rule out keeping his £750k bonus


THOMAS Cook’s boss today blamed the firm’s collapse on a heatwave – as he finally said sorry for distressing millions of customers.

Peter Fankhauser said he would “reflect” whether he would pay back some of his £750,000 back to the firm to help pay its debts.

 Peter Fankhauser said he was deeply sorry for the collapse of the firm

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Peter Fankhauser said he was deeply sorry for the collapse of the firmCredit: PA:Press Association

Furious MPs on the Business Committee slammed him for failing to rescue the business from collapse earlier this year, and said his apologies were “hollow”.

But he told them: “I am deeply sorry about this failure and deeply sorry for the distress we caused to millions of customers who booked holiday with us and who were on holiday with us.

“I am sorry for all colleagues who worked tirelessly to make Thomas Cook a better company.”

When asked repeatedly if he would pay back any of his bumper pay packet of £750,000 bonus, he replied: “I will consider what is right.”

More than 100,000 passengers were stranded and had to be flown home by the Government when one of Britain’s oldest travel firms went bust last month.

9,000 staff lost their job when the firm went under.

The former CEO said sorry he wasn’t able to seal a deal to save the firm, and admitted they were “not fast enough” in mending problems.

Bosses blamed a heatwave in May 2018 “struck” the firm after it was recovering.

Thomas Cook said at the time that the “unprecedented” prolonged period of hot weather across the continent meant more people spent June and July enjoying the sunshine at home and put off booking holidays abroad.

We couldn’t find a recipe because it was so late in the season,” Mr Fankhauser said.

“All the flights were somehow scheduled and were not full, but were over 60% full, it was very difficult.”

And he heaped blame on the Government for failing to bail them out too.

I think you are deluded about the business

Rachel Reeves

Former Chairman Frank Meysman said various parties were still willing to do a deal in the final hours “if the Government stepped in one way or another” to bail them out.

They claimed they had no contact with ministers in the days leading up to the collapse.

But Stephen Kerr MP said the company’s top brass were the ones behind the tragic bust – and they were lining their pockets as they went.

He blasted: “The fact is, this board was rewarded for failure.”

And Chair of the Committee, Rachel Reeves stormed: “The proof of the pudding is somewhat in the eating. You failed to turn around the business.

“You couldn’t hide these numbers forever, they caught up with you. Isn’t that the truth?”

Mr Meysman tried to argue the firm was still going well in many areas, but was slapped down by Ms Reeves.

She raged: “You are here today because 9,000 people have lost their jobs, 150,000 people were on their holiday and had to be brought home…

“You have brought down a 178 year business with huge repercussions for customers, staff and taxpayers.

“I’ll point to the failures, and they hugely outweigh the successes you have spoken about.

“You and your colleagues offered some apologies… I think you are deluded about the business, Mr Meysman, you ran.

“When you are pointing to the successes, you might want to have a little bit more humility, Mr Mesyman.”

Top MP Frank Field today demanded they hand their money back to the firm.

He said: “If they’ve had a chance to check how their own pensions are affected, perhaps the high-paid executives responsible would like to bolster the retirement of some of the workers they left behind, and give some of it back?”

 Ex-Thomas Cook bosses got grilled by fuming MPs in Parliament today

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Ex-Thomas Cook bosses got grilled by fuming MPs in Parliament todayCredit: PA:Press Association

Mr Fankhauser said he inherited a “huge debt pile” when he came into the role, but had paid back millions in interest and refinancing cost.

The firm had multiple profit warnings before he even arrived, he said today.

Yesterday the Government outlined plans to allow failed airlines to repatriate passengers so Brits won’t be left stranded in future.

The new legislation, revealed in the speech, would enable collapsed carriers to be placed in special administration, meaning their aircraft and crew can continue flying to bring customers back to the UK.

A number of airlines have gone bust in recent years, with the collapse of Monarch Airlines in 2017 leaving thousands stranded abroad.

We explain how to protect yourself if your airline or holiday provider goes under.

 Former Thomas Cook employees arrive at Portcullis House in Westminster this morning

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Former Thomas Cook employees arrive at Portcullis House in Westminster this morningCredit: PA:Press Association
 Rachel Reeves demanded Thomas Cook bosses pay back some of their pay and bonuses

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Rachel Reeves demanded Thomas Cook bosses pay back some of their pay and bonuses
Thomas Cook stores are bought by Hays Travel saving thousands of jobs


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