TUI Airways
Does one of the covenants make life more difficult if the share price is below (for example) 250 pence ?
Does one of the covenants make life more difficult if the share price is below (for example) 250 pence ?
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In the past month TUI raised about £600 million pounds from selling its Hapag Lloyd cruise line into a joint venture. This was to be used in transforming various aspects of the business but obviously it could be put to other uses if needed. Also being a German company I suspect they will probably find it easier to get help from the German government than a UK company trying to get help from the UK government. Just look at Condor.
In the past month TUI raised about £600 million pounds from selling its Hapag Lloyd cruise line into a joint venture. This was to be used in transforming various aspects of the business but obviously it could be put to other uses if needed. Also being a German company I suspect they will probably find it easier to get help from the German government than a UK company trying to get help from the UK government. Just look at Condor.
Condor at an operating level made money. Thomas Cook UK did not.
When a company wants to borrow money, the first question is - do I think you will pay me back ? Thomas Cook Air had lovely people at airports and in the air - but financially was a zombie. If you want to blame somebody, Manny Fontenla-Novoa who was CEO until 2011 would be a good candidate - he loaded the company up with debt. The EU had nothing to do with it, it was just a business that was failing and the cat had run out of lives
When a company wants to borrow money, the first question is - do I think you will pay me back ? Thomas Cook Air had lovely people at airports and in the air - but financially was a zombie. If you want to blame somebody, Manny Fontenla-Novoa who was CEO until 2011 would be a good candidate - he loaded the company up with debt. The EU had nothing to do with it, it was just a business that was failing and the cat had run out of lives
Last edited by davidjohnson6; 16th Mar 2020 at 21:33.
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Indeed, and just look at Condor. The UK government pretended they couldn't give financial help to Flybe, and will doubtless claim the same for other British airlines, blaming "EU regulations" yet other EU states have no issues in assisting their industries. It's just that when it comes down to it the UK government cares only about one sector - financial services.
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I note with interest that TUi are sending emails and then calling all customers booked on holidays and cruises departing upto 30th June 2020 to give them the option of moving their holiday to a later date free of charge.
I have a holiday to Cyprus on 29th June and the advisor I spoke to said most people for June were moving to later 2020 or onto 2021, I wonder with the current doubt over when travel advice will be lifted whether Tui are looking at not operating any holidays until July which as well will help with the Max issues as its another few months less they have to pay leasing costs for alternative aircraft.
I have a holiday to Cyprus on 29th June and the advisor I spoke to said most people for June were moving to later 2020 or onto 2021, I wonder with the current doubt over when travel advice will be lifted whether Tui are looking at not operating any holidays until July which as well will help with the Max issues as its another few months less they have to pay leasing costs for alternative aircraft.
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Seems sensible, and realistic. Less chance of having to plan flights and pre pay for hotel rooms only to cancel holidays at short notice, fills aircraft and rooms after “normality” has resumed and keeps the money in the company.
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I have this evening had more evidence that TUI are looking at not operating until 01/07 a hotelier I have known for years has been asked about not starting the season until start of July this year
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That sure is a long time but based on the current situation it really isn't too surprising. If they put a solid plan in place to cease operations until July and are able to sustain themselves for that long, it may save them a lot of uncertainty in the coming weeks and months, where (if travel is allowed/feasible) demand is likely to be near-zero and there will be the risk of sudden shutdowns etc.
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Anyone know why TUI have been operating some of their LGW-bound flights into STN? It doesn't seem to be for storage reasons (yet) as they are being used the following day. Two 757s went into STN on Tuesday night, one flew empty from STN to collect pax and returned to LGW but the other positioned STN-MAN on Wednesday morning before operating a rescue flight from there. Tonight's AGA-LGW and SID-LGW are both routing to STN according to FR24.
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Anyone know why TUI have been operating some of their LGW-bound flights into STN? It doesn't seem to be for storage reasons (yet) as they are being used the following day. Two 757s went into STN on Tuesday night, one flew empty from STN to collect pax and returned to LGW but the other positioned STN-MAN on Wednesday morning before operating a rescue flight from there. Tonight's AGA-LGW and SID-LGW are both routing to STN according to FR24.
