Crisising tourism group: Thomas Cook is supposedly asking for state aid

British tour operator Thomas Cook has reportedly asked the government in London for financial aid, according to media reports. This was reported by BBC and Sky News.

The Thomas Cook leadership led by CEO Peter Fankhauser has been working with banks and investors for months on a rescue package of now 1.1 billion British pounds (1.25 billion euros). The concern threatens to run out of money soon.

"It continues to be negotiated hard," said a company spokesman, but did not comment on details. It is still planned to implement the recapitalization by mid-October.

Flights should continue to take place

At the same time Thomas Cook tries to calm unsettled vacationers. "Thomas Cook Airlines flights are not affected and take place normally," tweeted the company.

The recapitalization of the company with brands such as Neckermann Reisen and the airline Condor should bring financial stability. The Group's own airlines are considered to be a source of income by Thomas Cook. Above all, the British tour operator business is a cause of concern.

According to Sky News, although the British government does not rule out a public loan for Thomas Cook, it sees this option a long way off. The corporation had confirmed on Friday that it is in addition to the negotiated rescue package of 900 million pounds trying to get another 200 million pounds for the travel and therefore financially weak winter season.

Funders jumped

According to insiders, participating banks, including the Royal Bank of Scotland, have called for this buffer. However, a hedge fund that was involved as a financier, but has now jumped, reported Sky News. Also on a quick sale of the Northern Europe business will be thought again in order to raise fresh money for the Group.

At the end of the summer season, hundreds of thousands of customers are still on holiday with Thomas Cook. According to media reports, it should be 600,000, of which about 150,000 from the UK. In case of insolvency, they would have to be retrieved with great effort.

While package travelers from Germany in the event of insolvency of the organizer insures an insurer, paid in the UK, the state for the recovery of stranded tourists from abroad. Therefore, in the event of a bankruptcy of the group, the British government would have to expect costs of several hundred million pounds, according to media reports.

Thomas Cook had always been in difficulty in recent years. As early as 2012, several banks rescued the group from immense write-downs on British business and IT systems with fresh money. This also Thomas Cook is sitting on a mountain of debt in the billions and suffers from the high interest burden.