Originally Posted by
hec7or
Since the airline is only operating IT for Thomas Cook, how is it keeping the company afloat?
As mentioned by others the airline(s) is/are profitable but not highly so. This means that their profit alone isn't enough for TC to pay its current debts and fund additional capital investment. The issue with selling the airline is that to be worth more to someone else it will either take efficiencies on the ops side or revenue enhancements. TC are currently stipulating a lot of future seat availability on specific routes and probably at specific prices. This significantly reduces the NPV of the airline to potential suitors. As for the purchase of new aircraft. This should be no problem for the airline itself, it would be the overall group's finances that would be the issue.