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Thomas Cook

Jerry

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Jerry

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I wonder if the airline might end up looking at more City routes and expand more on the continent. Also just operate as Condor.
 

rollo

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I've read the Sunday Times article and it states Thomas Cook made £12 million profit on a £9 billion turnover and they are carrying a long term debt of £866million to be serviced which leaves them in an unsustainable position without taking radical action suggesting they may sell all or part of the airline part of the business which has recently been consolidated, but nothing is apparently imminent.
Something to watch
 

Jerry

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Yes it is. I wonder if IAG or Easyjet would be interested in the airline part. Good presence at Gatwick and Manchester and as well Condor has good presence in Germany as well. I'd imagine that EZY would bin the long haul stuff though or sell it off.
 

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Isn't Condor their German airline? Maybe they created a subsidiary?
 

Jerry

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Oberusel isn't that far from Frankfurt and doesn't have an airport by the looks of it. Maybe some sort of Brexit back up?
 

rollo

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Gloomy news one.

I don't think Thomas Cook are on the danger list but appear to be working at it with debts exceeding the company value not good although profits still cover repayments.
Other signs are not encouraging given they are about to be ejected from the FTSE250 which means fund managers of some tracker funds are forced to sell driving the share price down and they have also stopped dividend payments which will also have the same effect. Additionally winter bookings 3%down.
I don't really get them saying that the hot summer was a major problem as other airlines in similar markets notably Jet2 seemed to cope o.k.

P.S.
Forgot to add they have a €700 plus million bond debt on the horizon due in 2022.
 
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paully

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Gloomy news one.

I don't think Thomas Cook are on the danger list but appear to be working at it with debts exceeding the company value not good although profits still cover repayments.
Other signs are not encouraging given they are about to be ejected from the FTSE250 which means fund managers of some tracker funds are forced to sell driving the share price down and they have also stopped dividend payments which will also have the same effect. Additionally winter bookings 3%down.
I don't really get them saying that the hot summer was a major problem as other airlines in similar markets notably Jet2 seemed to cope o.k.

P.S.
Forgot to add they have a €700 plus million bond debt on the horizon due in 2022.

I agree, the hot summer is an excuse, not a reason. My opinion, for whats its worth, is that TC and Tui operated, for years, as the Cartel Twins, as I called them. They always seemed to work in tandem and never really trod on each others toes, at the same time both were as inefficent as the other. Then came Jet2..better business plan, better understanding of how to treat customers. Stronger management that actually knew what they were doing and an owner that set about frying the asses of the competition. That, not a hot summer is my take on an old fashioned, out of time, out of ideas holiday companies..Both of them
 

Jerry

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Also people especially people holiday differently now. A lot more people book flights and hotels separately and online. Short breaks and city breaks are more popular not too mention that the world is more accessible and cheaper to get too. Whereas previous generations could only book with travel agents and afford a week or 2 in Spain the current generation can book a flight themselves anywhere in the world and most have the money to afford it and that's a challenge for companies like Thomas Cook.
 

TheLocalYokel

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Also people especially people holiday differently now. A lot more people book flights and hotels separately and online. Short breaks and city breaks are more popular not too mention that the world is more accessible and cheaper to get too. Whereas previous generations could only book with travel agents and afford a week or 2 in Spain the current generation can book a flight themselves anywhere in the world and most have the money to afford it and that's a challenge for companies like Thomas Cook.
The potential snag with booking separate flights and accommodation is that if the flight is cancelled you are unikely to get your accommodation money back unless your insurance covers it. Even when we've booked with a major tour operator (TUI in our case) and they've used easyJet as the carrier, we always have a concern that easyJet might cancel the flight, something that is not unknown with them. We'd get our money back for the entire booking from TUI because our contract is with them, not with easyJet, but we might not have a holiday.

When TUI or TCX use their own aircraft they invariably operate even if a day late because of bad weather or other operational constraint.

Travel agents can sometimes get a better deal than booking online direct with a carrier. With our recent trip to Australia we arranged a package via a long haul specialist that included Heathrow-Perth; four nights in a Perth hotel; Perth-Melbourne and Melbourne-Heathrow. It came out nearly 10% cheaper than if we'd just booked Heathrow-Melbourne return direct with the airline. We've found it cheaper to go via a travel agent each time we're gone to Australia in the past eight years.
 

Jerry

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The potential snag with booking separate flights and accommodation is that if the flight is cancelled you are unikely to get your accommodation money back unless your insurance covers it. Even when we've booked with a major tour operator (TUI in our case) and they've used easyJet as the carrier, we always have a concern that easyJet might cancel the flight, something that is not unknown with them. We'd get our money back for the entire booking from TUI because our contract is with them, not with easyJet, but we might not have a holiday.

When TUI or TCX use their own aircraft they invariably operate even if a day late because of bad weather or other operational constraint.

Travel agents can sometimes get a better deal than booking online direct with a carrier. With our recent trip to Australia we arranged a package via a long haul specialist that included Heathrow-Perth; four nights in a Perth hotel; Perth-Melbourne and Melbourne-Heathrow. It came out nearly 10% cheaper than if we'd just booked Heathrow-Melbourne return direct with the airline. We've found it cheaper to go via a travel agent each time we're gone to Australia in the past eight years.
That is the downside but generally people seem to be willing to take the gamble. Me personally i've nearly always booked with the airline or through a site like Expedia. For my trip to the US for xmas it was via Kayak this time though that wasn't my preffered option.
I don't think i've ever booked using a travel agent or someone like Thomas Cook or TUI.
 

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