Ailing Thomas Cook is launching a publicity drive to reassure customers their holidays are “in safe hands”.

The holiday firm saw its share price slump 75 per cent in one day last week amid fears of an imminent collapse.

But although the company claims it is now on a sound financial footing, fears persist that the negative headlines may have scared holidaymakers away.

Bookings fell 30 per cent last week amid uncertainty over the group’s future.

Rival TUI Travel has run full-page adverts for its Thomson brand claiming: “Another holiday company may be experiencing turbulence, but we are in really great shape.”

Interim chief executive officer Sam Weihagen in a letter says: “What a week it has been for Thomas Cook,” adding that it is now “an even stronger and more confident company” and members of the public “can be sure that their holiday really is in safe hands”.

His words play on the 170-year-old company’s history and claim it is the “most recognised and established name in the industry”.

The letter adds: “I have no doubt that we will still be in another 170 years and beyond.”

The group has suffered from the impact of the Arab spring, which has hit bookings to Tunisia and Egypt, destinations popular with France and Russia respectively, as well as UK holidaymakers.

It is understood the firm could axe up to 1,000 jobs by closing 200 of its 1,100 UK travel shops as it slashes costs and sells hundreds of millions of pounds of assets to help reduce its debt mountain.

James Hollins, an analyst at Evolution Securities, said the new lending facility had secured its short-term survival.

He added: “The increased facility pushes current gross debt to £1.5 billion but fortunately all the bad press has come at a low point in the booking cycle and the group has the funds and time to restore partner and consumer confidence in its brand and survival.”