State of play at MyTravel/Kestrel
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Not out of the woods
forgive me for intruding but this is anything but a non-story. MY Travel has £220m of a convertible bond outstanding which is due to be redeemed in less than a year. it is currently trading at about 30%. that means that if you bought it today and MYT honoured its obligation you would get three times your money back by January next year.
The market is saying very clealry that is not going to happen. So a refinancing of the company seems inevitable. the question is what will the terms and conditions be. Of course MYT can (and probably will) carry on trading. at least through the summer months. the question is what price will the banks extract for letting it continue.
And if you don't believe it you shold buy the convert and make loadsamoney when you're proved right.
The market is saying very clealry that is not going to happen. So a refinancing of the company seems inevitable. the question is what will the terms and conditions be. Of course MYT can (and probably will) carry on trading. at least through the summer months. the question is what price will the banks extract for letting it continue.
And if you don't believe it you shold buy the convert and make loadsamoney when you're proved right.
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Indeed so streetsj, but where is the story? The government are talking to the CAA, no doubt, but nothing has changed. The CAA are apparantly happy with the situation at present. The problem with such reporting is that it inflicts more damage upon the company as the 'great British public' doesn't understand the implications. The company will trade until the end of the summer and then hopefully will demonstrate good reasons for continued support. At what price ? who knows, but the banks and financial institutions will not pull the plug if the company is viable, they have a lot at stake.
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Not in the same way, no! The City did not like Harry! We have a new Board who are more acceptable to the City than the old one!
A point that has passed the press by, at least two of the three other leading tour operators are also in a very bad state, perhaps worse than MYT! One of them is not even a British owned firm! But the press seem intent on hounding MYT, why?
The stories I have read are half-truths or just plain wrong, in other words the normal standard of reporting from the British press. Only the Mail got half way to the truth this weekend! One or two of our competitors are spreading rumour to undermine the future of MYT. Our continued operation has thrown their financial future into grave doubt.
It cannot be denied MYT is not out of the woods and false or exaggerated press stories are not helping. Still all is fair in love and war, time will tell how much damage has been done.
A point that has passed the press by, at least two of the three other leading tour operators are also in a very bad state, perhaps worse than MYT! One of them is not even a British owned firm! But the press seem intent on hounding MYT, why?
The stories I have read are half-truths or just plain wrong, in other words the normal standard of reporting from the British press. Only the Mail got half way to the truth this weekend! One or two of our competitors are spreading rumour to undermine the future of MYT. Our continued operation has thrown their financial future into grave doubt.
It cannot be denied MYT is not out of the woods and false or exaggerated press stories are not helping. Still all is fair in love and war, time will tell how much damage has been done.
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Laker only had about one route , allowing him to be squeezed out by BA who weren't above using anti-competetive techniques,i.e undercutting and cross subsidising.MYT is the second biggest tour operator, and the biggest British one. Therefore it is hardly a fair comparison with Laker.
Albert's Growbag suggests that we are not making any profit on our loadfactors,but if you check the prices it is the others who are selling the distressed stock at the moment.
Albert's Growbag suggests that we are not making any profit on our loadfactors,but if you check the prices it is the others who are selling the distressed stock at the moment.
Laker had rather more than one route. New York, Los Angeles, Miami, Tampa, Barbados and Toronto spring to mind. In the summer New York and Los Angeles were served three times a day and Miami twice.
Furthermore, Laker did a hell of a lot of IT work not just across the pond but to most of the places that MYT go to now.
The fleet consisted of 11 DC-10s, 4 B707s, 5 BAC 1-11s and 3 A300s. A similar size to MYT perhaps?
Furthermore, Laker did a hell of a lot of IT work not just across the pond but to most of the places that MYT go to now.
The fleet consisted of 11 DC-10s, 4 B707s, 5 BAC 1-11s and 3 A300s. A similar size to MYT perhaps?
Join Date: Feb 2001
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Galloway mates?
Please take a look at the profiles of the antagonists. Financial analysts, disgruntled share-holders or trouble-makers? Any way you look, MYT is under attack by self-interest people, who presumably will be pleased when 23000 folk lose their jobs. Very sad.
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The attack is from our competitors and the British press. What gets me is the focus is on MYT when others are in a bad state and are not even British owned firms! If the press would leave us alone for the next few months then we would stand a much better chance of surviving!
Heaven forbid the British press should get behind a British company!
Heaven forbid the British press should get behind a British company!
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Unwiseowl
If you have friends in any of those companies ask them how their company is doing. Then you might have your answer. It's been a hard 2002 and will be a hard 2003 for all of us. The focus is mainly on MYT, initially wholely self induced, but now not aided by press/competitors, whereas the story now should be that it's not just MYT that has been in trouble but now maybe the mayority - especially considering additional factors such as the Gulf war/War on Terror" and the SARS.
If you have friends in any of those companies ask them how their company is doing. Then you might have your answer. It's been a hard 2002 and will be a hard 2003 for all of us. The focus is mainly on MYT, initially wholely self induced, but now not aided by press/competitors, whereas the story now should be that it's not just MYT that has been in trouble but now maybe the mayority - especially considering additional factors such as the Gulf war/War on Terror" and the SARS.
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unwiseowl
No offence intended but on what planet have you been living for the last few months? Two of the other companies have based their financial future on us not being around this summer. One had a loss £189 million pounds last year as their main market (Germany) has collapsed! Another has got to make cost savings of around £230 million!
Scheduled carriers have their backs against the wall as well with the Gulf War and SARS. Several are cancelling flights and one is asking crew to take unpaid leave! One can't even give flights away! Need I say more?
I am not happy that other companies are in trouble anymore than my own, it helps none of us in the long run. I would just like to see some fair reporting and the focus off MYT for a change. On the face of it MYT stand a good chance of recovering but with all the press coverage it is making the task harder. Sadly fair reporting in the UK is a thing of the past!
No offence intended but on what planet have you been living for the last few months? Two of the other companies have based their financial future on us not being around this summer. One had a loss £189 million pounds last year as their main market (Germany) has collapsed! Another has got to make cost savings of around £230 million!
Scheduled carriers have their backs against the wall as well with the Gulf War and SARS. Several are cancelling flights and one is asking crew to take unpaid leave! One can't even give flights away! Need I say more?
I am not happy that other companies are in trouble anymore than my own, it helps none of us in the long run. I would just like to see some fair reporting and the focus off MYT for a change. On the face of it MYT stand a good chance of recovering but with all the press coverage it is making the task harder. Sadly fair reporting in the UK is a thing of the past!
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kinsman
the public have a right to know if someone that they are paying vast amounts of money into for a holiday might not be around when the departure date crops up. this isnt a focus on the travel industry it works in all sectors - thats what business newspapers or business sections report.
myt are in trouble and the public / investors have a right to know.
rt
the public have a right to know if someone that they are paying vast amounts of money into for a holiday might not be around when the departure date crops up. this isnt a focus on the travel industry it works in all sectors - thats what business newspapers or business sections report.
myt are in trouble and the public / investors have a right to know.
rt
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in that case , don't the public have a right to know the truth about the state of play in companies such as Thomas Cook, TUI etc. None of which are having a good time, having lost as much if not more that My Travel. The more this drags on , the more I suspect it is an attempt to deflect the spotlight from others in just as deep a mess.
My Travel are having a difficult time but at least they can be seen to be doing something about it..new Directors, reduced capacity,
60mil worth of cost cutting introduced, redundancies. They appear to be making a huge effort from the shop floor upwards. Friends from within say there are working their backsides off only to be demoralised on a weekly basis by rumours and halftruths.
Have a look around..the whole industry's up the creek. Even the LCC's are feeling the pinch (except RYR!). Its about time this thread was wound up and cut MYT a bit of slack.
My Travel are having a difficult time but at least they can be seen to be doing something about it..new Directors, reduced capacity,
60mil worth of cost cutting introduced, redundancies. They appear to be making a huge effort from the shop floor upwards. Friends from within say there are working their backsides off only to be demoralised on a weekly basis by rumours and halftruths.
Have a look around..the whole industry's up the creek. Even the LCC's are feeling the pinch (except RYR!). Its about time this thread was wound up and cut MYT a bit of slack.
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Well said Kinsman I like you am sick and tired of the MyTravel bashing when we all know everyone is having a hard time. At least we have now dealt with the issues that caused us the grieve in the first place and given a FAIR chance we should come out the end of it a much stronger and better-run company!
As for the press they are just going over old ground again and again which I really do not think is FAIR when so many peoples careers and lively hoods are on the line and not just those who work for MyTravel!
So how about going and picking on someone else and give as a chance to get back on our feet where we belong just like everyone else!
As for the press they are just going over old ground again and again which I really do not think is FAIR when so many peoples careers and lively hoods are on the line and not just those who work for MyTravel!
So how about going and picking on someone else and give as a chance to get back on our feet where we belong just like everyone else!
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Well said Symbian - my opinion exactly!
As for the "right to know", I feel that considering the usual standards of reporting by the British press these days, the public has a right to know... only what we are willing to tell them. As we can remember from CRM courses, too much information can do more harm than good.
Also, I can't bear journos giving us lessons in openness when they are NOT, after all, a democratic power - come to think about it, who elected them?
That brings us to another thread about the dangers of talking to members of the press...
As for the "right to know", I feel that considering the usual standards of reporting by the British press these days, the public has a right to know... only what we are willing to tell them. As we can remember from CRM courses, too much information can do more harm than good.
Also, I can't bear journos giving us lessons in openness when they are NOT, after all, a democratic power - come to think about it, who elected them?
That brings us to another thread about the dangers of talking to members of the press...