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Thomas Cook

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It's happened before Tomleeds so it could easily happen again. The last major travel company to go under must have been the International Leisure Group ILG, which was the parent company of both Air Europe and Intasun Leisure back in 1991. It was a huge company, probably on a similar scale to Thomas Cook.

Thomas Cook need to be quick and off-load their non-profit making parts of their business. It's no good clinging onto the long-haul business for instance if it's loosing them bucket loads of money.

I wish them well for the future and I sincerely hope they can make the necessary changes quick enough to satisfy the banks that they can turn things around.
 

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I'm trying to remain upbeat about Thomas Cooks prospects but looking back over the years at other airlines left in a similar predicaments, more often than not the associated bad press forces the company out of business. Weeks before FlyGlobespan went under the airline was in talks with the banks. Bad press caused so many booking cancellations the business couldn't be saved. If Thomas Cook goes under it will probably take the Co-op Travel arm of the business with it. From a consumer point of view, it is vital this company stays in business because without it, it will leave very little competition for the Inclusive Tour companies left.
 

lbaspotter

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Well it looks like the government may step in or have a look at Thomas Cook and its support from the Banks.

Cameron asks for report on Thomas Cook

Prime minister David Cameron has asked for the government’s business department to provide a report on Thomas Cook.

Cameron was asked about the beleaguered tour operator during today’s prime minister’s questions in the Houses of Commons by Peterborough’s Conservative MP Stewart Jackson.

He replied: “I have obviously asked the business department to give me a report on what is happening in terms of Thomas Cook because I think it is important to make sure that this business is in a healthy state.”

Cameron also called Cook an “iconic and important British business which has given people a lot pleasure over the years”.

Jackson said he was asking the question on behalf of the 1,600 staff based at Cook’s headquarters in Peterborough who were concerned about media coverage of the operator’s “difficulties” over the last two days.

“People can support the company by booking through Thomas Cook safe in the knowledge that they are protected by the Atol scheme and will have an excellent holiday to boot.”

In a separate development, it has been reported that business consultancy Ernst & Young has been appointed by Cook’s banks which has been interpreted as a sign that there could be a restructuring of the company.

Sourcehttp://www.ttgdigital.com/news/cameron-asks-for-report-on-thomas-cook/4682351.article
 

lbaspotter

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Well it now looks like Thomas Cook may get its extra funding and support from the banks. But the Banks may force the Thomas Cook Group into a Major financial restructure of its buisness

It is also worth pointing out that it's share's have again increased by about 20%. This morning when the Markets opened they were at about 12p but now stand at about 14.5p but it's still away down from the high off 41p on Monday evening before the news broke on Tuesday.

Thomas Cook heading for restructure?

Thomas Cook is being tipped for a major financial restructuring after asking its banks for a new loan facility this week.

The struggling tour operator saw its shares collapse by 75% on Tuesday in the aftermath of the announcement that it was postponing its annual results - originally due out today - as it conducted talks with its banks about securing another £100 million facility to see it through the end of the year.

This group of 17 banks has now reportedly hired accountancy firm Ernst & Young to advise them on their options regarding Cook which analysts believe could include a major restructuring. Although the banks are thought unlikely to want to take control of the company.

Cook’s shares stabilised on Wednesday - at one point they were up by more than 25% - before closing at 11p on the London Stock Exchange which was an increase of 9% on Tuesday’s close. The shares rallied again in early trading on Thursday when they rose by more than 20% to around 14p.

But the shares are still down 73% on the closing price of 41p on Monday before the company dropped its bombshell to the City on Tuesday morning.

During Tuesday’s massive sell-off, Cook’s biggest shareholder Lloyds Banking Group also cut its 8.96% stake to less than 5%.

Lloyds is included in the syndicate of Cook’s lenders but its shareholding in the company is through its Scottish Widows subsidiary.

Source: http://www.ttgdigital.com/news/thomas-cook-heading-for-restructure/4682354.article
 

lbaspotter

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Not good news at all. As it's just been announced Thomas Cook’s has had its ATOL insurance for flight-only sales temporarily withdrawn...

Trade reassured after insurance suspended on Thomas Cook flight-only

Advantage has rushed to reassure the trade after it emerged that insurance on Thomas Cook’s flight-only sales had been temporarily suspended.

The suspension means that anyone selling Thomas Cook seats on an Atol-to-Atol basis or as part of a dynamic package, will not currently be protected by scheduled airline failure insurance (Safi).

Advantage leisure director Julia Lo Bue-Said said the consortium had received a letter from Northern and Western Insurance Company on Tuesday confirming that the insurance would be temporarily withdrawn.

However she said: “This is a really small part of the overall business. I would reassure the trade not to be worried by this.”

Source: http://www.ttgdigital.com/news/general-news/trade-reassured-after-insurance-suspended-on-thomas-cook-flight-only/4682360.article
 

lbaspotter

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Well like I've been saying all along this morning it has been confirmed that the Banks have agreed to lend the extra £100million to Thomas Cook Group.

Here's the official press release from the Thomas Cook Group

http://online.hemscottir.com/tools/insite/jsp/download_file.jsp?cms_system_id=2294966833&fundamental_id=6901389&article_type=thoc-press&componentId=31242058

Thomas Cook Group Plc
Amendment to existing bank facilities and new £200m bank facility signed


Thomas Cook Group is pleased to announce that we have reached agreement with our banking group to provide the Group with a new facility that significantly improves the robustness of the Group’s financial position.

Our banks, led by Barclays, HSBC, RBS and UniCredit, have agreed to provide a new £200m facility available until 30 April 2013, which replaces the £100m short-term facility announced on 21 October 2011. In addition, they have agreed a further relaxation of the financial covenants under the existing facilities. This provides the Group with much increased headroom to deal with unexpected events and the effects of an uncertain economic environment.

As previously announced, the Board is taking steps to reduce the Group’s debt and reach a more appropriate capital structure over time. The Group will also undertake a strategic review.

The Group will announce its preliminary results for the twelve months ended 30 September 2011 during the week commencing 12 December 2011.

Sam Weihagen, Group Chief Executive, Thomas Cook Group plc said:
“I am absolutely delighted that we have reached agreement and I would like to thank the banks for acting so swiftly. Over the last few days, we have been overwhelmed by the messages of support from our holidaymakers, suppliers and partners and I would like to thank them for their good wishes and our employees for their hard work and dedication. For over 170 years Thomas Cook has provided customers across the world with fantastic travel experiences. Today they can look forward confidently to holidays with us for many years to come.”
 

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That's excellent news Lbaspotter. Let's hope they can make the necessary changes to ensure the long term success of the company.
 

channex 757

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Does anynoe know if anything is wrong with the a321 G-DHJH because it hasn't flown since the 5th January. Has it gone for a C-check or something like that?

I was just wondering because I have flown on this aircraft recently
 

Jordan-34092

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I Think Channex 757 that it will be having maintenance and checks done before the summer seasons begins and when the majority of aircraft will be needed, although i can't exactly state what checks could the aircraft be having done.
 

channex 757

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I Think Channex 757 that it will be having maintenance and checks done before the summer seasons begins and when the majority of aircraft will be needed, although i can't exactly state what checks could the aircraft be having done.
It could be seen as January is probably the quietest time of the year so it would be a time when the aircraft is least needed
 

lbaspotter

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I see Thomas Cook have been rasing yet more money by selling upto 17 aircraft (Boeing 757' & Boeing 767's) and then leasing them back.

Source: http://www.ttgdigital.com/news/cook-aircraft-sales-to-raise-1829m/4683970.article

Cook aircraft sales to raise £182.9m

Thomas Cook has agreed to sell or lease back 17 aircraft, which is expected to raise £182.9 million.

The company said it would sell and lease back 11 Boeing 757 aircraft with Guggenheim Aviation Partners and six Boeing 767 aircraft with Aircastle Advisor International Limited.

Guggenheim has also agreed in principle to enter a sale and leaseback agreement for a further two Boeing 767 aircraft.

Thomas Cook said it expected to raise £126.1 million from the sales to Guggenheim and £56.8 million for the sale of the six Boeing 767s to Aircastle.

All of the money from the aircraft sales will be retained by the company, which it said would “add to the group’s headroom of cash and available facilities”.

Sam Weihagen, chief executive of Thomas Cook Group plc, said: “Today’s announcement demonstrates the progress which we continue to make to strengthen the Group’s financial position, with the aircraft disposals providing substantial additional liquidity.

“As expected, the first half seasonal losses have widened however, summer bookings have improved in recent weeks.”

Thomas Cook has been disposing of assets in order to reduce its debt.

This has already seen it part with hotels in Europe and put its Thomas Cook India subsidiary up for sale.
 

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[textarea]Thomas Cook sees losses widen as it struggles with debt

Thomas Cook has seen its half-year losses increase sharply after a "difficult" six months, but says it is taking "decisive action" to improve its position.

The travel group reported a pre-tax loss of £713m in the half year to 31 March, up from a £269m loss last year.

The company has struggled with high debt levels and the wider downturn in the global travel sector.

Earlier this month, Thomas Cook secured a £1.4bn refinancing package.

This deal gives the company a further three years to repay its debts.

Read more: http://www.bbc.co.uk/news/business-18246207[/textarea]

Another news source says the Thomas Cook brand was hit hard by the near-collapse of the company last year. This will have in turn have had a significant effect on the company's profitability during the last half year.
 

lbaspotter

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Thomas Cook has just dropped a major bomb shell for its staff based at its Bradford offices.

As Thomas Cook have just announced that it is to close its Bradford office by March next year. The site is staffed by more than 500 people and the company has said that 468 will potentially be affected, with 69 moving to a new site.

http://www.itv.com/news/calendar/update ... -bradford/
 

pug

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Shocking news for all concerned. I cant help but think that this is just the thin end of the wedge :cry: Though it did strike me as strange that they have two head offices.
 

pug

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Was one of them the former Airtours Head Office?
I seem to remember the Airtours/Mytravel HQ being in Manchester, could be wrong.

It does seem that the restructure is looking to cut away at the sheer number of premises, with todays announcement along with the announcement that they are cutting the number of highstreet outlets.
 

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It's not good for the Thomas Cook workforce in Bradford but the company needs to do whatever is necessary if it is to stay in business.
 

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There's no reason why people shouldn't book with them. They still have the backing of the banks who will almost definitely continue to support them so long as they are seen to be carrying out the necessary changes to make the company profitable again. As well as that, customers booking with Thomas Cook are still protected ATOL and ABTA.
 

lbaspotter

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Aviador said:
There's no reason why people shouldn't book with them. They still have the backing of the banks who will almost definitely continue to support them so long as they are seen to be carrying out the necessary changes to make the company profitable again. As well as that, customers booking with Thomas Cook are still protected ATOL and ABTA.
Well I bet I know about 500 people who wont be booking a Thomas Cook Holiday next summer after getting the news like they did today?
There former chief executive Manny Fontenla-Novoa also just got a astonishing £15 million payout for driving the company towards the very edge of the cliff. And now its the staff based at the Bradford office "who are going to pay the price of that mismanagement with their jobs".

If that means down sizing to survive, then let them do it as you quite rightly point out aviador they have got backing from the Banks now. But at a sizeable cost?

But I think a total pull out from both the Leeds/Bradford and Humberside region will hurt them even more. "I know they wont be forcing me either down the A1 to Donny or over the M62 to Manchester as Monarch, Thomson or Jet2 will get my money instead".

Thomas Cook will have to have a major re-brand and advertising campaign throughout the UK to win this battle. Also they will have regain consumer confidence as its a damaged brand. That I'll be twice as hard in the Yorkshire region as well now after today's bomb shell off an announcement.
 

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