After a shocking dissolution of Thomas Cook UK on the 23rd of September that left around 6 lakh tourists across the globe stranded, India is hitting the panic button. The 178-year-old company that has been one of the premier travel groups across the globe, closed down its shutter following a lot of financial trouble. Other issues that factored into the closure of the travel group included competition from widely known travel giants online and tourists planning their trips independently. With 1.5 lakh British tourists left beached around the world, the British government went into hyperdrive as they tried to get their countrymen back to the homeland.
But what does the collapse of Thomas Cook UK spell for the Indian subcontinent? Turns out, the answer to that is nothing, really. Following the sale of Thomas Cook India back in August 2012, the only commonality shared by Thomas Cook UK and Thomas Cook India is the name because of a licensing agreement. Acquired by Canada-based multinational company, Fairfax Financial Holdings, Thomas Cook UK’s collapse has no repercussions on its Indian counterpart at all.
And Thomas Cook India has wasted no time in setting the record straight that they have got nothing to do with the British travel group’s unexpected disintegration. Tweeting right after the debacle, this is what they had to say:
Reference reports in the media about the business of Thomas Cook (UK). This is to highlight that Thomas Cook India Ltd is a different entity since being acquired in 2012 by Fairfax Financial Holdings a Canada based multinational with varied interests across the globe and in India pic.twitter.com/eGR8WlyGQO
— Thomas Cook India (@tcookin) September 21, 2019
And the company is not pulling down its shutters anytime soon either. Although travellers booking through Thomas Cook UK seem to have borne the brunt of the collapse, in India, it’s all good. And the main reason behind that is the fact that Thomas Cook India is debt-free, unlike Thomas Cook UK which was under a crippling debt of close to USD 2.5 billion. How big an amount is that?
As of the end of the month of June, Thomas Cook India’s coffers stay comfortable with cash and bank deposits that value up to INR 13,890 million. If Thomas Cook UK’s dissolution has thrown you into a frenzy about your holiday bookings then you can lay those to rest. Your holiday is not in the lion’s den so kick back and relax.