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You can find the current article at its original source at https://www.theguardian.com/business/live/2019/sep/24/thomas-cook-collapse-pay-row-repatriation-holidaymakers-caa-business-live
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| Thomas Cook collapse: financial regulator may launch probe - business live | Thomas Cook collapse: financial regulator may launch probe - business live |
| (32 minutes later) | |
| The Confederation of British Industry has backed calls for a probe into the “fat cat” pay at Thomas Cook. | |
| Josh Hardie, deputy director-general at the CBI, says (via the Evening Standard). | |
| Questions are now rightly being asked about directors’ remuneration and decision-making. | |
| Disproportionate rewards are a lightning rod for public discontent, so high pay can only ever be justified by high performance over the long term. | |
| The CBI represents Britain’s bosses, so won’t have enjoyed headlines about “fat cats creaming off £47m”. | |
| Holidaymakers are sharing their stories of further difficulties as they try and return to the UK (through our callout to readers). | |
| Nikita Locke, 22 was on a Thomas Cook package holiday at the SunConnect One hotel in Monastir, Tunisia with her sister Shannon and two young children. | |
| They were supposed to be taken by coach organised by the hotel to Enfidha–Hammamet airport on Tuesday but were advised by the hotel to book their own taxi seven hours before their 1015 flight to Birmingham was due to depart, in case of disruption. | |
| They paid 120 Tunisian Dinar, about £33.50, for the taxi in advance and were given a receipt by hotel staff but when the taxi arrived the driver claimed he hadn’t been paid by the hotel and demanded more money. | |
| Locke said: | |
| “It was 3am and we had the two kids screaming and crying, standing outside the hotel. | |
| My sister and I were so stressed wondering if we were going to make it to the airport. I just refused to pay out any more money.” | |
| The hotel finally paid the driver 45 minutes later, and the family were taken to the airport. | |
| Their flight was due to depart at 10.15 am, but it’s now scheduled to leave at 1.20pm. | |
| Reminder: you can shares your experiences here. | |
| In Crete, authorities say eight UK-bound flights have been chartered to fly Thomas Cook customers back home today. | |
| Some 20,000 Britons have been stranded on the island which has borne the brunt of the fallout in Greece of Thomas Cook’s bankruptcy. Two planes are scheduled to fly to Gatwick, two to Manchester with the rest slated to fly to Newcastle, Birmingham, Glasgow and Bristol. Around 50,000 Thomas Cook customers have been marooned nationwide. | |
| Greece, already hard hit by its long-running debt crisis, has been hugely affected by the tour company’s collapse with the country’s tourism confederation estimating today that damages could reach €500m (up from initial estimates of €300m). | |
| On Tuesday Haris Theoharis, the tourism minister, said the firm owed outstanding payments from mid-July to hotels and other businesses. | |
| As the engine of the Greek economy, the tourism industry contributes around a quarter of total economic output, employing an ever growing number of people – at last count one in five. | |
| Relief measures are being considered by the centre right government once total damages are calculated. Following an urgent meeting of tourism and finance ministers last night it emerged that tax cuts are among the measures being considered for enterprises worst affected by the tour operator’s liquidation. | |
| The Financial Reporting Council’s job is to “promote transparency and integrity in business”. | The Financial Reporting Council’s job is to “promote transparency and integrity in business”. |
| That means upholding standards for accounting and actuarial work, and ensuring that corporate reporting and auditing is up to scratch. | That means upholding standards for accounting and actuarial work, and ensuring that corporate reporting and auditing is up to scratch. |
| If it does probe Thomas Cook’s collapse, as it’s threatening, the FRC could examine two issues | If it does probe Thomas Cook’s collapse, as it’s threatening, the FRC could examine two issues |
| 1) Thomas Cook’s use of one-off charges. The company was a keen user of ‘exceptional items’ -- stripping certain costs out of its financial results. That’s perfectly above board in principle, if it gives the City a better view of the underlying business. But it can be abused - which is why auditors need to ensure one-off items really are unusual. | 1) Thomas Cook’s use of one-off charges. The company was a keen user of ‘exceptional items’ -- stripping certain costs out of its financial results. That’s perfectly above board in principle, if it gives the City a better view of the underlying business. But it can be abused - which is why auditors need to ensure one-off items really are unusual. |
| 2) Goodwill write-downs. Back in May, Thomas Cook took a £1bn impairment charge relating to its 2007 merger with MyTravel. Thomas Cook said it had to revalue the deal “in light of the weak trading environment” -- but you could ask why it took 12 years to conclude it overpaid. | 2) Goodwill write-downs. Back in May, Thomas Cook took a £1bn impairment charge relating to its 2007 merger with MyTravel. Thomas Cook said it had to revalue the deal “in light of the weak trading environment” -- but you could ask why it took 12 years to conclude it overpaid. |
| Ben Martin has written a good piece about this in today’s Times, here. He points out that EY took over as Thomas Cook’s auditors in 2017, from PWC, and “strongly recommended” strengthening its procedures. | Ben Martin has written a good piece about this in today’s Times, here. He points out that EY took over as Thomas Cook’s auditors in 2017, from PWC, and “strongly recommended” strengthening its procedures. |
| Thomas Cook's auditor, EY, warned it over the way it adjusted its accounts in 2018. EY said in the firm's annual report it "had strongly recommended to management that they strengthen the process over the identification and approval" of exceptional items https://t.co/WJHtWR7YXh | Thomas Cook's auditor, EY, warned it over the way it adjusted its accounts in 2018. EY said in the firm's annual report it "had strongly recommended to management that they strengthen the process over the identification and approval" of exceptional items https://t.co/WJHtWR7YXh |
| Newsflash! Britain’s accountancy regulator has announced it could launch an urgent probe into the collapse of Thomas Cook yesterday. | Newsflash! Britain’s accountancy regulator has announced it could launch an urgent probe into the collapse of Thomas Cook yesterday. |
| The Financial Reporting Council says: | The Financial Reporting Council says: |
| “In light of recent developments at Thomas Cook we are considering whether there is any case for investigation and enforcement action as a matter of urgency and in cooperation with the Insolvency Service.” | “In light of recent developments at Thomas Cook we are considering whether there is any case for investigation and enforcement action as a matter of urgency and in cooperation with the Insolvency Service.” |
| That follows the government’s decision to fast-track the Insolvency Services’s inquiry into why Thomas Cook fell into insolvency. | That follows the government’s decision to fast-track the Insolvency Services’s inquiry into why Thomas Cook fell into insolvency. |
| This is odd. The departures board at Palma Airport is now showing that all the Thomas Cook repatriation flights are delayed until 1am! | This is odd. The departures board at Palma Airport is now showing that all the Thomas Cook repatriation flights are delayed until 1am! |
| My colleague Sam Jones has sent this photo of the flights board. | My colleague Sam Jones has sent this photo of the flights board. |
| It shows that flights to Stansted, Bristol, Manchester, Birmingham, Newcastle, Gatwick, East Midlands and Cardiff have all been pushed back beyond midnight, rather than leaving this morning. | It shows that flights to Stansted, Bristol, Manchester, Birmingham, Newcastle, Gatwick, East Midlands and Cardiff have all been pushed back beyond midnight, rather than leaving this morning. |
| However, the CAA website suggests most of the flights were leaving on time, so perhaps this is an error? | However, the CAA website suggests most of the flights were leaving on time, so perhaps this is an error? |
| Sam also reports that the airport is busy, but not as hectic as yesterday. There are FCO staff on the ground, but they’re not allowed to talk to the press. So it’s a confusing picture.... | Sam also reports that the airport is busy, but not as hectic as yesterday. There are FCO staff on the ground, but they’re not allowed to talk to the press. So it’s a confusing picture.... |
| Thomas Cook staff, meanwhile, have been turning up for work despite not knowing if they’ll even get paid. | Thomas Cook staff, meanwhile, have been turning up for work despite not knowing if they’ll even get paid. |
| #ThomasCook information desk staff have turned up for work again this morning in #Palma One worker Antonia,says she has no idea if she’ll be paid and knows her job has gone, but she’ll work anyway until told otherwise..“What else can I do. I don’t want to sit at home + worry” pic.twitter.com/R5WhJMk206 | #ThomasCook information desk staff have turned up for work again this morning in #Palma One worker Antonia,says she has no idea if she’ll be paid and knows her job has gone, but she’ll work anyway until told otherwise..“What else can I do. I don’t want to sit at home + worry” pic.twitter.com/R5WhJMk206 |
| Here’s the latest on Thomas Cook, from Associated Press: | Here’s the latest on Thomas Cook, from Associated Press: |
| The British government has flown home the first 14,500 people stranded by the collapse of tour operator Thomas Cook, and is expected to ramp up the repatriation effort to get all the 150,000 U.K.-based customers home in two weeks. | The British government has flown home the first 14,500 people stranded by the collapse of tour operator Thomas Cook, and is expected to ramp up the repatriation effort to get all the 150,000 U.K.-based customers home in two weeks. |
| The Civil Aviation Authority said Tuesday the first batch of people were flown back after Thomas Cook ceased all operations Monday, leaving hundreds of thousands stranded around the world. | The Civil Aviation Authority said Tuesday the first batch of people were flown back after Thomas Cook ceased all operations Monday, leaving hundreds of thousands stranded around the world. |
| It was still unclear how many of the 600,000 total that were traveling with the company as of Sunday would remain stranded. German authorities were still mulling a request for a bridging loan from airline Condor, a subsidiary of Thomas Cook. | It was still unclear how many of the 600,000 total that were traveling with the company as of Sunday would remain stranded. German authorities were still mulling a request for a bridging loan from airline Condor, a subsidiary of Thomas Cook. |
| The company’s Dutch subsidiary said all flights scheduled for Tuesday were scrapped and customers won’t be able to use accommodation they booked. | The company’s Dutch subsidiary said all flights scheduled for Tuesday were scrapped and customers won’t be able to use accommodation they booked. |
| Despite yesterday’s collapse, Thomas Cook workers have been turning up to work today. | Despite yesterday’s collapse, Thomas Cook workers have been turning up to work today. |
| They’ll be assisting the Official Receiver, which was appointed to liquidate the company on Monday. | They’ll be assisting the Official Receiver, which was appointed to liquidate the company on Monday. |
| Back in the markets, sterling is lurching around after the Supreme Court dramatically ruled against Boris Johnson, over the prorogation of parliament. | Back in the markets, sterling is lurching around after the Supreme Court dramatically ruled against Boris Johnson, over the prorogation of parliament. |
| In a seismic ruling, the UK’s top judges have concluded that the suspension of parliament was ‘unlawful, void and of no effect’. | In a seismic ruling, the UK’s top judges have concluded that the suspension of parliament was ‘unlawful, void and of no effect’. |
| This sent the pound rocketing back towards $1.25 (a level hit last week), before subsiding back as traders wondered what happens next. | This sent the pound rocketing back towards $1.25 (a level hit last week), before subsiding back as traders wondered what happens next. |
| Opposition MPs are calling for Johnson’s resignation, as they digest the details of a stinging ruling from the Supreme Court: | Opposition MPs are calling for Johnson’s resignation, as they digest the details of a stinging ruling from the Supreme Court: |
| "It is impossible for us to conclude, on the evidence which has been put beforeus, that there was any reason - let alone a good reason - to advise Her Majesty toprorogue Parliament for five weeks" pic.twitter.com/HyQG4my6EL | "It is impossible for us to conclude, on the evidence which has been put beforeus, that there was any reason - let alone a good reason - to advise Her Majesty toprorogue Parliament for five weeks" pic.twitter.com/HyQG4my6EL |
| "Nowhere is there a hint that the Prime Minister, in giving advice to Her Majesty, is more than simply the leader of the Government seeking to promote its own policies; he has a constitutional responsibility" pic.twitter.com/3i4cN7X3aF | "Nowhere is there a hint that the Prime Minister, in giving advice to Her Majesty, is more than simply the leader of the Government seeking to promote its own policies; he has a constitutional responsibility" pic.twitter.com/3i4cN7X3aF |
| Have you been affected by the collapse of Thomas Cook? Share your stories | Have you been affected by the collapse of Thomas Cook? Share your stories |
| Labour MP Justin Madders has hit out at travel companies who have hiked their prices following Thomas Cook’s collapse. | Labour MP Justin Madders has hit out at travel companies who have hiked their prices following Thomas Cook’s collapse. |
| He says a constituent is facing a 500% price hike to reschedule their honeymoon to Mexico. | He says a constituent is facing a 500% price hike to reschedule their honeymoon to Mexico. |
| A constituent has contacted me after they lost their honeymoon booking for Mexico at the end of Oct with Thomas Cook. They tell me @TUIUK had a similar package advertised but overnight the cost increased by over 500%! I sincerely hope TUI are not profiteering at their expense! | A constituent has contacted me after they lost their honeymoon booking for Mexico at the end of Oct with Thomas Cook. They tell me @TUIUK had a similar package advertised but overnight the cost increased by over 500%! I sincerely hope TUI are not profiteering at their expense! |
| I hope people now look very closely at what @TUIUK and other travel companies are doing as it would be indefensible for them to capitalise on the demise of Thomas Cook in this way @MartinSLewis @EPortStandard @sherlock1968 @bbcmerseyside @GranadaReports @itvnews @BBCNews | I hope people now look very closely at what @TUIUK and other travel companies are doing as it would be indefensible for them to capitalise on the demise of Thomas Cook in this way @MartinSLewis @EPortStandard @sherlock1968 @bbcmerseyside @GranadaReports @itvnews @BBCNews |
| Obviously there is a supply-and-demand issue at present, but companies should be wary of price-gouging.... | Obviously there is a supply-and-demand issue at present, but companies should be wary of price-gouging.... |
| Sam Jones, who is in Mallorca, has this update on flights from Palma airport. | Sam Jones, who is in Mallorca, has this update on flights from Palma airport. |
| Eight flights are due to bring Thomas Cook customers home to the UK from Palma airport in Mallorca today. Some have been rerouted, while others are set to leave as previously scheduled: | Eight flights are due to bring Thomas Cook customers home to the UK from Palma airport in Mallorca today. Some have been rerouted, while others are set to leave as previously scheduled: |
| The 10.25 to Stansted is currently set to take off as originally planned, as is the 10.35 to Bristol, the 10.45 to Manchester, the 11.10 to East Midlands, and the 11.30 to Cardiff. | The 10.25 to Stansted is currently set to take off as originally planned, as is the 10.35 to Bristol, the 10.45 to Manchester, the 11.10 to East Midlands, and the 11.30 to Cardiff. |
| The 11am flight from Palma to Gatwick is due to take off 15 minutes early, but will now land at Manchester. | The 11am flight from Palma to Gatwick is due to take off 15 minutes early, but will now land at Manchester. |
| The 10.50 to Birmingham has been pushed back to 20.15 and will now land in Manchester. | The 10.50 to Birmingham has been pushed back to 20.15 and will now land in Manchester. |
| The 11am Palma-Newcastle flight has also been pushed back to 20.15 and will land in Manchester as well. | The 11am Palma-Newcastle flight has also been pushed back to 20.15 and will land in Manchester as well. |
| The CAA says transfers will be provided to all those landing at rescheduled destinations. | The CAA says transfers will be provided to all those landing at rescheduled destinations. |
| In other transport news, Uber has just been denied a new permanent licence to operate in London. | In other transport news, Uber has just been denied a new permanent licence to operate in London. |
| Instead, Transport for London has instead given the ride-hailing firm only a two-month extension to its licence, which is due to expire on Wednesday night. | Instead, Transport for London has instead given the ride-hailing firm only a two-month extension to its licence, which is due to expire on Wednesday night. |
| It is the second time in two years that TfL has rejected Uber’s application for a full operating licence, following concerns it doesn’t meet its “fit and proper” test. | It is the second time in two years that TfL has rejected Uber’s application for a full operating licence, following concerns it doesn’t meet its “fit and proper” test. |
| Here’s the full story: | Here’s the full story: |
| Uber granted two-month extension to London licence | Uber granted two-month extension to London licence |