• Privacy policy
  • T&C’s
  • About Us
    • FAQ
  • Contact us
  • Guest Content
  • TLE
  • News
  • Politics
  • Opinion
    • Elevenses
  • Business
  • Food
  • Travel
  • Property
  • JOBS
  • All
    • All Entertainment
    • Film
    • Sport
    • Tech/Auto
    • Lifestyle
    • Lottery Results
      • Lotto
      • Set For Life
      • Thunderball
      • EuroMillions
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
The London Economic
No Result
View All Result
Home Business and Economics

EU backs German government’s move to keep Thomas Cook subsidiary flying

The approach is in stark contrast to the plight of 9,000 UK staff of Thomas Cook, Britain’s oldest travel agent, many of whom have talked of resorting to food banks.

Ben Gelblum by Ben Gelblum
2019-10-14 14:01
in Business and Economics
FacebookTwitterLinkedinEmailWhatsapp

In a rather embarrassing turn of events for Boris Johnson’s government, the European Union has approved the German government’s decision to grant airline Condor, a subsidiary of collapsed tour operator Thomas Cook, a 380 million-euro (£334 million) bridging loan to keep it in the air.

Germany’s economy ministry said the EU’s executive Commission gave its blessing on Monday. Condor applied for the loan last month to tide it through the winter after British-based Thomas Cook ceased operations.

The airline, which has been profitable, has nearly 60 planes and 4,900 employees. Condor’s management is looking for new investors.

Thomas Cook former staff resort to food banks

The approach is in stark contrast to the plight of 9,000 UK staff of Thomas Cook, Britain’s oldest travel agent, many of whom have talked of resorting to food banks.

Wielding banners that say “Europe flies, UK crashes” and “bankers bailed out, Thomas Cook kicked out” they protested outside the Conservative Party conference.

Condor (PA)

Labour’s shadow business secretary Rebecca Long Bailey joined them and said: “it surfaced that the Beis (Business, Energy and Industrial Strategy) department didn’t meet with Thomas Cook hardly at all over the last 12 months and we wonder why that was allowed to happen when it was quite clear that there were alarm bells ringing about Thomas Cook for quite some time.

“It’s staggering how the German government seemed to be on top of the situation and intervened, yet ours just sat back and sat on its hands essentially. And there must be reasons for that.

“We want to know, is it incompetence or was there a real strategic reason as to why they didn’t want to provide the support?”

Johnson quizzed on flight to New York over Thomas Cook decision (PA)

Thomas Cook had initially approached the UK Government prior to the collapse, asking for a £200 million loan to make up a shortfall in funding to avoid going bust, but ministers declined – concerned that it would set an unhealthy precedent.

RelatedPosts

Trump unveils $499 gold mobile phones for ‘real Americans’

No ‘millionaire exodus’ as a result of Labour policies, study finds

Shops could be forced to accept cash in future

Liverpool to introduce tourist tax from June

The collapse of Thomas Cook could cost taxpayers up to £160 million, according to early estimates.

Some £60 million is expected to come out of the government’s coffers to fund unpaid wages, holiday pay and redundancy costs for the company’s 9,500 staff following the travel firm’s collapse.

The cost is in addition to the Government’s own £100 million estimates for the biggest repatriation in living memory of 150,000 holidaymakers when the business went bust last month.

Boris Johnson complained of ‘moral hazard’

Boris Johnson defended accusations he had failed to step in to save the 178-year-old tour operator, admitting: “It is perfectly true that a request was made to the Government for a subvention of about £150 million,” the Prime Minister admitted.

“Clearly that’s a lot of taxpayers’ money and sets up, as people will appreciate, a moral hazard in the case of future such commercial difficulties that companies face.”

Moral hazard is the concept that firms will take increased risks if they believe that they will be protected from the consequences, for example through a state bailout.

Whether there was a moral hazard in the taxpayer grants and foreign trade jaunts given to Johnson’s former model friend Jennifer Arcuri, will no doubt emerge in London Assembly and police inquiries.

@BenGelblum

Former Thomas Cook staff relying on food banks to make ends meet after collapse

Thomas Cook collapse set to cost taxpayers £160 million

Thomas Cook staff protest outside the Conservative Party conference

Can Boris Johnson explain why ex-model chum Jennifer Arcuri got taxpayer cash & why Thomas Cook didn’t?

Tags: headline

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

← Man dressed as broccoli arrested at Extinction Rebellion protests ← Bristol City fan in tears as mates gave him £2,500 to aid fight with Parkinson’s
No Result
View All Result
  • Home
  • News
  • Politics
  • Lottery Results
    • Lotto
    • Set For Life
    • Thunderball
    • EuroMillions
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Privacy policy
  • Contact us

© The London Economic Newspaper Limited t/a TLE thelondoneconomic.com - All Rights Reserved. Privacy

-->