* Thomas Cook enters compulsory liquidation
* Hundreds of thousands stranded
* UK government to fly home UK travellers
* CEO: I apologise
(Adds background, reaction)
By Kate Holton
LONDON, Sept 23 (Reuters) - Thomas Cook, the world's
oldest travel firm, collapsed on Monday, stranding hundreds of
thousands of holidaymakers around the globe and sparking the
largest peacetime repatriation effort in British history.
Chief Executive Peter Fankhauser said it was a matter of
profound regret that the company had gone out of business after
it failed to secure a rescue package from its lenders.
The UK's Civil Aviation Authority (CAA) said Thomas Cook had
now ceased trading and the regulator and government would work
together to bring the more than 150,000 British customers home
over the next two weeks.
"I would like to apologise to our millions of customers, and
thousands of employees, suppliers and partners who have
supported us for many years," Fankhauser said in a statement
released in the early hours of Monday morning.
"It is a matter of profound regret to me and the rest of the
board that we were not successful."
The government and aviation regulator said that due to the
scale of the situation some disruption was inevitable. "Thomas
Cook has ceased trading so all Thomas Cook flights are now
cancelled," the CAA said.
The demise of Thomas Cook marks the end of one of Britain's
oldest companies that started life in 1841 running local rail
excursions before it survived two world wars to pioneer package
holidays first in Europe and then further afield.
The firm now runs hotels, resorts and airlines for 19
million people a year in 16 countries. It currently has 600,000
people abroad, forcing governments and insurance companies to
coordinate a huge rescue operation.
Pictures posted on social media showed Thomas Cook planes
being diverted away from the normal stands, and being deserted
as soon as they had landed.
Crippled by its 1.7 billion pounds of debt, Thomas Cook has
been hit by online competition, a changing travel market and
geopolitical events that can upend its summer season. Last
year's European heatwave also hit the company hard as customers
put off last minute bookings.
The corporate collapse has the potential to spark chaotic
scenes around the world, with holidaymakers stuck in hotels that
have not been paid in locations as far afield as Goa, Gambia and
Greece.
In the longer term it could also hit the economies of its
biggest destinations, such as Spain and Turkey, leave fuel
suppliers out of pocket and force the closure of its hundreds of
travel agents across British high streets.
The British government and the aviation regulator have drawn
up a plan to use other airlines to bring Britons home. In
Germany, one of the biggest customer markets for Thomas Cook,
insurance companies will take charge.
(Reporting by Kate Holton; editing by Guy Faulconbridge)
