Thomas Cook-2
Join Date: Jun 2007
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And there was me thinking Harriet Green OBE had turned around Thomas Cook from the financial basket case it was before her arrival into an expanding, successful enterprise. Turns out yet another top executive gains personal acclaim then moves swiftly on before the mess resurfaces in the long grass. This isn't to do with hot summers or Brexit or Easter falling late or drones or any other management excuse. They are suffering in all markets - UK, Germany and Scandinavia. It's to do with the huge debt built up since the MyTravel merger, aging assets in the form of shops and aircraft, and a fundamental shift away from IT package holidays to DIY internet based dynamic packaging predominantly because customers can buy better quality holidays at more affordable prices by doing it themselves.
If TCK can soon sell Condor to LH, and sell TCK UK Long Haul to Virgin Atlantic maybe this may help their bank balance?
Who would want the UK airline? TUI would probably not be allowed to buy TCK, and also the fleet is all wrong for them.
A half year loss of 1.6bn £ is not a good look.
TCK is, overall a good product and has a loyal customer base but they simply do not make any money.
We have been here before once or twice since MT/airtours, but now the markets, the £ v the $ and euro, and sales are much more unstable.
Who would want the UK airline? TUI would probably not be allowed to buy TCK, and also the fleet is all wrong for them.
A half year loss of 1.6bn £ is not a good look.
TCK is, overall a good product and has a loyal customer base but they simply do not make any money.
We have been here before once or twice since MT/airtours, but now the markets, the £ v the $ and euro, and sales are much more unstable.
Join Date: Jul 2018
Location: Yorkshire
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I’ve never flown with Thomas cook before. However this year I chose to book two weeks in Cuba and later in the year flights to New York. So I kinda guess I’m all in with them for this year. I’m covered through credit cards and the like so am not too worried about losing any money.
It seems to me that whatever troubles TC are in, the media will drive it into a frenzy and people will stop booking. They seem to love talking these things down.
Hopefully i I get my holiday and my flights. But having been through administration and redundancy myself (albeit in automotive manufacturing) I hope the thing keeps going. It’s the staff I fee sorry for.
It seems to me that whatever troubles TC are in, the media will drive it into a frenzy and people will stop booking. They seem to love talking these things down.
Hopefully i I get my holiday and my flights. But having been through administration and redundancy myself (albeit in automotive manufacturing) I hope the thing keeps going. It’s the staff I fee sorry for.
Join Date: Feb 2018
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It is worth remembering how the bulk of the loss arose. Essentially Thomas Cook massively overpaid for MyTravel back in 2007 and they have been clinging to the illusion for years in the accounts that the Mytravel business really was a good deal and worth all that money. Thomas Cook have now finally admitted in their accounts how much MyTravel is really worth now (and how much they overpaid) - and their profit statement shows that difference. Put simply they are paying now for the financial sins of a previous CEO
The admission of having drastically overpaid in 2007 had to appear in the accounts at some point in time - and it was going to be painful whenever it occurred. I suspect the can has been kicked down the road by the Thomas Cook CEO for a long long time and that it's only audit rules which have forced this admission
Thomas Cook need to be much more active in explaining the scale of this loss and that it is a one-off to both the public and the press if consumer confidence is to return. Crisis management PR is desperately needed here
The admission of having drastically overpaid in 2007 had to appear in the accounts at some point in time - and it was going to be painful whenever it occurred. I suspect the can has been kicked down the road by the Thomas Cook CEO for a long long time and that it's only audit rules which have forced this admission
Thomas Cook need to be much more active in explaining the scale of this loss and that it is a one-off to both the public and the press if consumer confidence is to return. Crisis management PR is desperately needed here
It’s sad to see Thomas Cook in this situation, especially as a former employee.
With regards to the media, if they are reporting fact then they are really not doing anything wrong. To coerce media outlets to avoid certain news would be effective censorship. Be careful what you wish for.
If what they report is unfounded or is speculation then fair enough but reporting credit card company’s withholding funds etc is probably in the public interest.
With regards to the media, if they are reporting fact then they are really not doing anything wrong. To coerce media outlets to avoid certain news would be effective censorship. Be careful what you wish for.
If what they report is unfounded or is speculation then fair enough but reporting credit card company’s withholding funds etc is probably in the public interest.
Join Date: Aug 2000
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I seem to remember that it was a merger between MyTravel and Thomas Cook so they didn’t overpay as they didn’t buy MYT. My understanding (as you’ll soon work out it’s not my area of expertise, but I’m attempting to explain it in a way that my simple brain can understand) Is that TCG placeD a value for the MYT side of the business into their accounts which they now realise it’s no longer (perhaps never was) worth. This value has been carried through their accounts since the merger in 2007 which has ‘artificially’ inflated the groups assets/worth.
Join Date: May 2006
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The credit card company part of the story is something specific to the Nordic operation.
The way it is being reported is that it applies to the whole business. Which, at the moment, is not accurate...
The way it is being reported is that it applies to the whole business. Which, at the moment, is not accurate...
Join Date: Aug 2014
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Exactly, However once it’s in the public domain inaccurate or not it’s causing widespread panic amongst the public
Flight only booking on LH through TC; safe?
Folks,
I have a flight-only booking with Lufthansa through Thomas Cook for 3 of us to travel to Japan this October for the Rugby World Cup. I have paid a deposit and the remainder of the flight costs are due next month. I have an ATOL certificate from Thomas Cook, but I'm really not interested in getting my money back: I want the flights. If I pay the remainder of the flight costs to Thomas Cook, does that mean that Lufthansa will then get payment for our flights and we will then be OK to fly - whatever happens to Thomas Cook?
Thank you,
FW
I have a flight-only booking with Lufthansa through Thomas Cook for 3 of us to travel to Japan this October for the Rugby World Cup. I have paid a deposit and the remainder of the flight costs are due next month. I have an ATOL certificate from Thomas Cook, but I'm really not interested in getting my money back: I want the flights. If I pay the remainder of the flight costs to Thomas Cook, does that mean that Lufthansa will then get payment for our flights and we will then be OK to fly - whatever happens to Thomas Cook?
Thank you,
FW
Join Date: Mar 2013
Location: UK
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I don't think anyone will know the details.
ATOL guarantees recompense of any monies not the actual goods (eg specific flights) even if with a standalone existing airline such as LH.
ATOL guarantees recompense of any monies not the actual goods (eg specific flights) even if with a standalone existing airline such as LH.
Folks,
I have a flight-only booking with Lufthansa through Thomas Cook for 3 of us to travel to Japan this October for the Rugby World Cup. I have paid a deposit and the remainder of the flight costs are due next month. I have an ATOL certificate from Thomas Cook, but I'm really not interested in getting my money back: I want the flights. If I pay the remainder of the flight costs to Thomas Cook, does that mean that Lufthansa will then get payment for our flights and we will then be OK to fly - whatever happens to Thomas Cook?
Thank you,
FW
I have a flight-only booking with Lufthansa through Thomas Cook for 3 of us to travel to Japan this October for the Rugby World Cup. I have paid a deposit and the remainder of the flight costs are due next month. I have an ATOL certificate from Thomas Cook, but I'm really not interested in getting my money back: I want the flights. If I pay the remainder of the flight costs to Thomas Cook, does that mean that Lufthansa will then get payment for our flights and we will then be OK to fly - whatever happens to Thomas Cook?
Thank you,
FW
Banks also offer compensation on top of the loss of flight money for any out of pocket expenses. (section 75 credit card consumer act )
If TCK has not paid LH and also not ticketed your booking and they go under, then LH will not fly you as they will not get paid.
I'm puzzled why you have an ATOL certificate unless you have booked a package holiday.
Ask TCK for your LH PNR (Locator no.) and call LH to ask the status of your booking and ask what happens if the agent (TCK) goes under.
If the CAA are doing this now then they have grave concerns about TCK's imminent future - sadly the damage is obvious, but we hope the Company does manage to survive.
Businesses fail because they run out of cash. The share price could sit at 1p as long as the business has cash it will survive. It could well fall into the hands of the hedge funds or its lenders like Debenhams, but that won’t affect holidays people have booked. You can shop in Debenhams today, just as well as you could last year. Same with Flybe. Monarch failed because it’s loses were unsustainable, Thomas cook is still generating a profit from operations, and has in the region of £500m headroom for this winter. It’s winter loses did increase but only by about £70m compared to last year.
Thomas cook, like all tour operators at this time of year is at its peak cash flow. Some people will cancel their trips because of this, but they will lose their deposits and Thomas cook will be able to resell their holidays at a discount while making even more money on it.
I have no doubt Thomas cook will be a very different company in the coming months. But I would be very surprised if it stopped trading altogether.