Peter Fankhauser, who led Thomas Cook up until its collapse last month, on Tuesday made several apologies in front of MPs but insisted he had worked “tirelessly” to save the tour operator.
The former chief executive of the travel giant was giving evidence on day one of the Business, Energy and Industrial Strategy Committee’s inquiry into the failure of the company under a £1.7 billion debt mountain.
He said: “I am deeply sorry that we couldn’t save this iconic brand. I’m really deeply sorry for the distress we caused to millions of customers.” He also apologised to suppliers, and was “especially sorry for all my colleagues”.
Fankhauser said he worked “tirelessly” for the company and did not get any bonus in 2018 and 2019. His 2017 bonus was about £750,000 of which about 30% was in shares.
Committee chair Rachel Reeves asked whether some of his former bonuses could be clawed back by The Insolvency Service. He responded: “I will consider what is right, but I’m not going to decide that today.”
Fankhauser said he was aware when he joined Thomas Cook in 2014 of the challenge he had taken on. It had been grappling with weaker demand for package holidays and competition from other carriers. Revival plans were “constrained” by debts, he said.
The committee’s inquiry is focusing on the stewardship of the company, executive remuneration, accounting practices and the role of auditors.
Thomas Cook ceased trading in September. It had tried to persuade banks and creditors to accept a complicated restructuring that would involve wiping out the debt and injecting a further £900 million.
Banks were close to accepting that offer but at the last minute demanded a further £200 million “stand-by facility” in case its woes worsened. No rescue deal was agreed.
That left 9000 UK jobs at risk and triggered the biggest ever peacetime repatriation by the UK Civil Aviation Authority to return home some 150,000 UK holidaymakers that were stranded.
