State of play at MyTravel/Kestrel
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The end of MYT?
We in ATC are hearing all kinds of supposedly highly reliable rumours involving MyTravel ceasing to fly from 0001hrs this Sunday.
It's surely nonsensical speculation but it must be founded in fact somewhere and by someone?
Does anyone know quite what is going on so we can put these scurrilous and worrying (at least for all concerned parties at EGCC) rumours to bed?
Thanks
It's surely nonsensical speculation but it must be founded in fact somewhere and by someone?
Does anyone know quite what is going on so we can put these scurrilous and worrying (at least for all concerned parties at EGCC) rumours to bed?
Thanks
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There's a bit about MYT on the Daily Telegraph's internet site today.
http://www.telegraph.co.uk/money/mai...frontcity.html
http://www.telegraph.co.uk/money/mai...frontcity.html
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MyTravel battles for survival
=============================
we could do without reports like this, particulally in such uncertain times !!
http://www.guardian.co.uk/business/s...925085,00.html
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CAA steps up surveillance of troubled tour operator's finances
Andrew Clark, transport correspondent
Saturday March 29, 2003
The Guardian
Troubled tour operator MyTravel is facing a fresh battle for survival, with growing concern from regulators about its ability to fulfil financial fitness requirements to fly passengers to far-flung destinations.
The civil aviation authority has stepped up surveillance of the company to ensure MyTravel is compliant with the terms of its Atol tour operator's licence, which imposes strict cash criteria to protect tourists from any sudden failure.
It is understood that regulators are becoming increasingly worried about the strength of MyTravel's accounts. The company warned at its annual meeting last week that the war in the Gulf had caused its already weak bookings to deteriorate.
In September, MyTravel renewed a £400m statutory bond lodged to cover the cost of repatriating customers if it unexpectedly ceases trading. However, in addition to the bond MyTravel is required to provide evidence on demand to show that it remains financially stable.
Under Atol rules, the civil aviation authority has the right to "revoke or suspend a licence in mid-term" - a move that would ground the company's fleet of aircraft. Tour operators are given written notice of such a decision, to allow them to make last-minute representations.
City sources confirmed that the CAA had held recent talks with MyTravel. A company insider insisted that contact had been "constructive".
MyTravel's shares slumped 10% to 9.25p yesterday as rumours swept the City of new problems.
The closing price valued the business, which takes more than 12m people a year on holiday, at just £47m.
MyTravel's founder, David Crossland, stepped down as chairman this month, having delayed his retirement last year to try to rescue the ailing company, which has brands including Panorama, Cresta and Going Places.
Formerly known as Airtours, the company ran into trouble under its former chief executive Tim Byrne.
It struggled to recover from a slump in bookings following September 11, 2001 and faced a further crisis of confidence after the emergence of problems with the way it accounted for holiday insurance.
The group's new chief executive, Peter McHugh, revealed last week that summer bookings were running 3% below last year's levels, while bookings for winter 2003 were down 4%.
In November, MyTravel agreed a £250m refinancing with its lenders, giving it credit facilities until the end of the year. Talks are under way with banks to put its debt on a longer term basis.
Among the CAA's criteria for tour operators is a requirement that "free assets" - including buildings and aircraft - are equivalent to a certain proportion of turnover. The CAA can demand monthly and quarterly updates on the state of a company's balance sheet.
An industry source said: "They have the right to ask for information at any time and they can ask for pretty much any information that they want."
The CAA said it never discussed its dealings with Atol holders. MyTravel insisted it was "fully bonded" under CAA regulations.
MyTravel recently risked inflaming criticism of "rewards for failure" in the City by agreeing a £1.2m payoff for Mr Byrne, who left in October after losing the confidence of fellow directors.
Former finance director David Jardine, who left a month later, received £840,000 in compensation.
=============================
we could do without reports like this, particulally in such uncertain times !!
http://www.guardian.co.uk/business/s...925085,00.html
============================================================
CAA steps up surveillance of troubled tour operator's finances
Andrew Clark, transport correspondent
Saturday March 29, 2003
The Guardian
Troubled tour operator MyTravel is facing a fresh battle for survival, with growing concern from regulators about its ability to fulfil financial fitness requirements to fly passengers to far-flung destinations.
The civil aviation authority has stepped up surveillance of the company to ensure MyTravel is compliant with the terms of its Atol tour operator's licence, which imposes strict cash criteria to protect tourists from any sudden failure.
It is understood that regulators are becoming increasingly worried about the strength of MyTravel's accounts. The company warned at its annual meeting last week that the war in the Gulf had caused its already weak bookings to deteriorate.
In September, MyTravel renewed a £400m statutory bond lodged to cover the cost of repatriating customers if it unexpectedly ceases trading. However, in addition to the bond MyTravel is required to provide evidence on demand to show that it remains financially stable.
Under Atol rules, the civil aviation authority has the right to "revoke or suspend a licence in mid-term" - a move that would ground the company's fleet of aircraft. Tour operators are given written notice of such a decision, to allow them to make last-minute representations.
City sources confirmed that the CAA had held recent talks with MyTravel. A company insider insisted that contact had been "constructive".
MyTravel's shares slumped 10% to 9.25p yesterday as rumours swept the City of new problems.
The closing price valued the business, which takes more than 12m people a year on holiday, at just £47m.
MyTravel's founder, David Crossland, stepped down as chairman this month, having delayed his retirement last year to try to rescue the ailing company, which has brands including Panorama, Cresta and Going Places.
Formerly known as Airtours, the company ran into trouble under its former chief executive Tim Byrne.
It struggled to recover from a slump in bookings following September 11, 2001 and faced a further crisis of confidence after the emergence of problems with the way it accounted for holiday insurance.
The group's new chief executive, Peter McHugh, revealed last week that summer bookings were running 3% below last year's levels, while bookings for winter 2003 were down 4%.
In November, MyTravel agreed a £250m refinancing with its lenders, giving it credit facilities until the end of the year. Talks are under way with banks to put its debt on a longer term basis.
Among the CAA's criteria for tour operators is a requirement that "free assets" - including buildings and aircraft - are equivalent to a certain proportion of turnover. The CAA can demand monthly and quarterly updates on the state of a company's balance sheet.
An industry source said: "They have the right to ask for information at any time and they can ask for pretty much any information that they want."
The CAA said it never discussed its dealings with Atol holders. MyTravel insisted it was "fully bonded" under CAA regulations.
MyTravel recently risked inflaming criticism of "rewards for failure" in the City by agreeing a £1.2m payoff for Mr Byrne, who left in October after losing the confidence of fellow directors.
Former finance director David Jardine, who left a month later, received £840,000 in compensation.
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Fly747 and Dozza2K
why wouldn't you book a holiday with any of the MYT companies? They're all ABTA / ATOL bonded as much as any other company is. Your holiday money is as secure as with any other holiday company.
It's stupid, ignorant comments such as yours and media hatchets who are kicking MYT everytime they begin to get up from the bloody awful situation last year.
Have a nice Day!
why wouldn't you book a holiday with any of the MYT companies? They're all ABTA / ATOL bonded as much as any other company is. Your holiday money is as secure as with any other holiday company.
It's stupid, ignorant comments such as yours and media hatchets who are kicking MYT everytime they begin to get up from the bloody awful situation last year.
Have a nice Day!
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'MyTravel renewed a £400m statutory bond lodged to cover the cost of repatriating customers if it unexpectedly ceases'
£400m Bond ! how do they expect to bring the Pax home
Private Jet!
Somebody somewhere is talking B...............x
£400m Bond ! how do they expect to bring the Pax home
Private Jet!
Somebody somewhere is talking B...............x
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Yes I hope they pull through too!
Not just for the sake of my friend who moved to Alicante in Dec and but hates it and is now waiting on a stand by ticket in Alicante for a flight back to Belfast, the next one on Tuesday night. Also for another friend who is an F/A for them out fo BFS who loves her job and for all the other employees and the aviation industry.
As Daniel Beddingfield sang, "Gotta get through this!"
Not just for the sake of my friend who moved to Alicante in Dec and but hates it and is now waiting on a stand by ticket in Alicante for a flight back to Belfast, the next one on Tuesday night. Also for another friend who is an F/A for them out fo BFS who loves her job and for all the other employees and the aviation industry.
As Daniel Beddingfield sang, "Gotta get through this!"
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Unfortunate media coverage here. Given an already 'jiterry market' concerning MYT, extra adverse publicity by the media can only damage an already vunerable share price! Case of a 'self-fullfilling prophesy!', which the airline needs like a hole in the head right now.
Friday's are always a classic day for an airline to go to the wall, if its going to happen, normally driven by the banks, before the executioners go off for their weekends! Also, if it was 'Belgrano induced', my guess is that it would have happened before lunchtime on Friday. Ever tried contacting anyone at the Belgrano after lunch on a Friday?? The phones just ring or go into auto-answer mode. They have long gone for their comfortable weekend retreat! Also, the guys that come and seize aircraft are also on sabatical!
I hope the media coverage is none other than the usual b*sh!T designed to create more confusion and discomfort in an already troubled market! Does it really sell more papers? Shame on the lot of them! Of course, I could be proved wrong here
Friday's are always a classic day for an airline to go to the wall, if its going to happen, normally driven by the banks, before the executioners go off for their weekends! Also, if it was 'Belgrano induced', my guess is that it would have happened before lunchtime on Friday. Ever tried contacting anyone at the Belgrano after lunch on a Friday?? The phones just ring or go into auto-answer mode. They have long gone for their comfortable weekend retreat! Also, the guys that come and seize aircraft are also on sabatical!
I hope the media coverage is none other than the usual b*sh!T designed to create more confusion and discomfort in an already troubled market! Does it really sell more papers? Shame on the lot of them! Of course, I could be proved wrong here
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Just landed back at LGW pleased to say we are still here!
Just read the press reports looks to me when you get past the headlines that nothing has changed! Sounds like one of our competitors has slipped the papers a story to add a bit more pressure to our situation. These are the same stories that were doing the rounds a few months ago and we are still here.
Stormin Norman - the £400 million would be used to charter aircraft from other airlines. Should not be a problem as there are a lot of aeroplanes being parked at the moment that need some work. However, I still hope MYT will continue for some time yet, after all our aircraft are all flying and full at the moment!
Having been down this road before I hope no one goes bust it will not be good for anyone in the industry or the public.
Just read the press reports looks to me when you get past the headlines that nothing has changed! Sounds like one of our competitors has slipped the papers a story to add a bit more pressure to our situation. These are the same stories that were doing the rounds a few months ago and we are still here.
Stormin Norman - the £400 million would be used to charter aircraft from other airlines. Should not be a problem as there are a lot of aeroplanes being parked at the moment that need some work. However, I still hope MYT will continue for some time yet, after all our aircraft are all flying and full at the moment!
Having been down this road before I hope no one goes bust it will not be good for anyone in the industry or the public.
