'Holidays safe' as Thomas Cook is thrown £200m lifeline until 2013

Holidaymakers fearing for their trips with Thomas Cook have been told their are safe after the struggling travel operator secured a £200?million lifeline.

Thomas Cook set alarm bells ringing last week when it announced it had to seek extra funding after its sales were hit by the troubled economy, unrest in Egypt and Tunisia and by floods in Thailand.

Shares plummeted by 75 per cent at one point and bookings dropped by 30 per cent, as customers feared losing holidays or being stranded if the company collapsed.

The 170-year-old tour operator has secured a new credit facility, approved by the firm’s banks, including Barclays, HSBC, RBS and UniCredit, which will last until 2013.

That replaces a £100?million short-term facility announced last month and will cost £10?million in arrangement fees.

Hundreds of thousands of people have already booked trips for 2012 with Thomas Cook, which sells about six million holidays a year in the UK.

A spokesman said: ‘They can be reassured that Thomas Cook is business as usual.’

Company chief executive Sam Weihagen said he was ‘absolutely delighted’ that an agreement had been reached with the banks so quickly, adding: ‘Over the past few days, we have been overwhelmed by the messages of support from our holidaymakers, suppliers and partners.

‘I would like to thank them for their good wishes and our employees for their hard work and dedication.’

Mr Weihagen said he was confident that the company would pick itself up.

Observers said the firm was anxious to achieve a deal as quickly as possible to avert a plunge in confidence. Its core customer base of families with young children has been particularly affected by the tough economic conditions in Britain.