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Will MY-TRAVEL go Bust ?
With all the articles in the press over the weekend ref MYT... are they likely to go bust..??
Answers on a post card please...:ooh: |
The shares I have don't even make reasonable toilet paper.
Strange so many directors left with six figure settlements for NOT doing the job they were paid for. This is our own 'food for oil' scandal. Predictably it's the innocents that will suffer. I bet they are still churning out the 'Do more with Less edicts too'. Glad I'm not there, it's a terrible 'overhead' to work with when you're just trying to DO your job. Edited for spelin agyn |
Careful thereceiver2004,
"MT" is the 2-letter code for Thomas Cook Airlines, who I suspect don't particularly want to be associated with MYT , otherwise known as MyTravel... CM p.s. As to an answer to your question, it's amazed me how MYT have carried on as they have for as long as they have... |
MyTravel under threat to lose trading licence
Terry Macalister Monday November 15, 2004 The Guardian MyTravel, Britain's biggest tour operator, will admit for the first time today that it will lose its trading licence from the Civil Aviation Authority unless bondholders give consent to an £800m restructuring. The danger of the regulator pulling the plug on flights and holidays will be contained in a circular sent to rebels such as fund manager Fidelity, which has opposed the rescue plan. MyTravel has been in turmoil for almost two years since it warned of a £50m black hole in the accounts which eventually led to the exit of the founder and chairman, David Crossland and chief executive Tim Byrne. MyTravel made a £365m loss in 2003, but last October announced a debt-for-equity plan it argues will put the company on a sound footing. Bondholders have complained, however, that they have not been properly consulted on the terms of the deal, which would leave them with only 8% of the restructured business. A further 4% would be left with shareholders, while 88% would go to the creditor banks led by Royal Bank of Scotland. MyTravel declined to comment last night on the publication date of the circular or any of its contents. "The board believes - and has made clear since March - it is necessary to restructure the balance sheet," was all a spokeswoman for MyTravel was willing to say. But well-placed sources confirmed the circular was ready to be distributed this morning and would warn about the threat from the CAA, which is poised to undertake an annual review of MyTravel. The company, which offers holidays under a series of different names, hopes to head off any early intervention from the regulator by telling bondholders it will go to court if it does not have their irrevocable support by Wednesday. If necessary, MyTravel would make an application to the high court on November 18 and ask for a "scheme of arrangement" to be put in place. Under this, the court would convene a meeting for shareholders and creditors where it would call them to vote on what amounts to an even more punitive ownership structure. This would leave bondholders with only 2% of the company, formerly known as Airtours. Shares in MyTravel rose by more than 7% to 4p last Friday amid expectation that the bondholders would agree the offer - rather than seeing their potential holding diluted further. Paradoxically the latest crisis comes as MyTravel has recovered some of its financial strength. This is partly because costs have been cut drastically through redundancies and the sale of certain business. City analysts had been pencilling in operating losses of £100m for the 12 months to the end of September 2004. But chief executive Peter McHugh said earlier in September he believed it would hit breakeven, helped by booming demand in Scandinavia for holidays in the sun after a wet domestic summer. There was also an improvement in the British side of the business which has started to make profits after a tough start to the year. |
Been done to death this one, everyone in the airline business knows that MYT are in trouble and are doing their best to get out of the sh*t.
I'm sure we all know people working for them, so lets stop the rumour-mongering and hope they pull through it. Good luck MYT!! |
Another victim of their own success, and far too rapid an expansion.
They were far better when they were the small Airtours of the 1980's, and exclusively used chartered BAC1-11's from Dan-Air Services to operate their holiday flights. I remember well that they were the only tour operator of the era not to serve meals on their Dan-Air flights - only coffee and biscuits. Anyway, now saddled with all that debt, a fleet of aircraft, cruiseships, hotels, islands and not a cent in the bank! Bring back the days of Pendle Tours Inc. (For that matter, bring back Dan Air too). My heart goes out to EVERYONE at MYT. Let's hope that a miracle occurs and the company re-emerges to fight another day, but in a leaner, more manageable form. Good luck guys. |
If the bond holders hold out the answer is maybe but I don't think either the bond holders or share holders can or will block the banks and MYT at this stage. If they do then it's all over. I think MYT are playing hard ball with the bond holders to force the issue asap. A high risk stratergy perhaps!
I think we will still be here this time next year. |
I agree with Fuel Crossfeed.
I work for one of MYT's biggest rivals, but none the less it would be horrible to see them go under. Apart from our passions for aviation, we are all in this industry for one main thing £££££££££££££££££££ ! ! ! ! Most of the people I have met from MYT seem good guys! They seem to be just about hanging in there at the moment, long may it continue!:ok: |
Will MY-TRAVEL go Bust?
Simple answer............NO
Sure the bondholders will play merry hell but, faced with 8% or 2% of very little, 8 would seem better! Holding out would seem futile, is anyone that bitter to force MYT under?? I doubt it! D_D, hope you've mellowed, you were as big a loss to MYT as that rot-box trijet when it finally gets shifted. Rgds The Moss |
you reap what you sow.
I treat my staff like cr4p, i've messed up and wasted 800 million of other peoples money, and all the poor people who trusted me tough, you've lost also... still our management structure is so solid and we are number 1 that they must let us off and we'll continue as if nothing ever happened. nuff said? |
Dadaposh
Grow up! It is not about letting MYT off! The question is simply have they re-built a business that will make money? Can the banks recover some or all of their investment? Ansewer YES! Therefore the company will survive but not for any emotional reasons. They will have had to prove the company is again viable. |
Ballymoss
oh please! Bitter? Bitterness doesnt put a company out of business. Its stupid management does, and also the harsh realities of the market place. How old are ya? Its PURELY economical. If MYT have allowed themselves to get into this state I really do NOT believe in propping them up when there are other fitter companies out there. Hope they go bust I really do, the market needs a sweep and clean and at the moment we dont need a company bleeding at the seems. Jet |
lovejet......
Thats a bit harsh ! |
Lovejet
Really hope you fail your LPC/OPC, lose your medical and your house is taken from you by the banks! Your wife or husband runs off with the postman/woeman and the neighbours dog bites you in the arse! All of the above sounds really childish and mean spireted don't you think? Sounds a bit like your post! Nice to know there are still warm kind folks like you still out there makes me feel all warm inside. Shame you don't live up to your name! ;) |
Lovejet
May the sun shine down on you NOT |
loveJet, your profile says it all. "Future Airline Boss", bet you'll have quality people from all over the industry just falling over themselves to work for such a caring employer. :\
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Well i suppose at least lovejet is being honest, probally not thinking of the far wider implications such as lower wages/no pay rises for everyone else, no training new folk as there will be a glut of rated and experienced people around and a door opening to many more two bit gash start ups that are far worse.
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LJ makes the assumption that only MYT Airways would be affected. Stacks of MYT summer charter capacity is farmed out to third party carriers (2 million seats last year rings a bell). Monarch, Air Europa, Spanair etc would all feel some heat if MYT PLC failed. The other MYT products like Tradewinds, Cresta and Bridge offer scheduled flights to the long haul destinations. Not sure how many seats are bought on BA etc by these sub divisions, but bet it is not to be sneezed at! The fall out would be felt by loads of subcontractors, from the handling agents to cleaners, caterers, spares suppliers, Hallmark cars and so on. No doubt he still "hopes they go bust". :mad:
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763,
Would it really affect 3rd party flying? I thought it would only ground the MYT fleet if the CAA pulled the plug. Surely the other airlines would increase their flying. |
The bond applies to the tour operator, no tour operator no airline!
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qwertyuiop: I thought it would only ground the MYT fleet. Of course, if the CAA decided that the group was so shaky that they were pulling the ATOLs, I assume they’d also pull MyTravel Airways Ltd’s Air Operators Certificate. And I guess the Danish CAA would follow suit and pull MyTravel Airways A/S’s AOC. |
Bitter (I prefer lager...........)
loveJet
Bitterness has put many a company out of business! The list is long. Run along and develop some routes as your profile would have us believe. And before you ask how old I am, clean up your grama!........:mad: Rgds The Moss |
Lovejet
Your post was a bit vitriolic. If you are referring to the collective we as in the taxpayer propping up My Travel there is no doubt that aint going to happen. As they say - if you owe the bank a million thats your problem, if you owe the banks 500 mill then thats their problem. If the banks have advanced a ton of money to support the group then they have assisted in developing this situation To get some return they will need to stump up some more. Regardless of this, there are a bunch of hard working people still trying to deliver the goods to the travelling public. They have families to support, mortgages to pay etc etc. It got to be damn hard to approach each day with some form of optimism whilst wondering whether there will be a job in a month or so's time. Your posting about hoping my travel goes bust would be just what they want to read - NOT. For the sake of all the staff I hope things get better. Well that's my tuppny ha'pny worth anyway. |
Spy
Your response is quite shocking. I'm talking about a company using thier poor position to put other fitter companies at risk by taking on lump sums of cash to get them out of the proverbial s@$*. You made it very personal...I dont quite think you understood my point, which wasn't an attack on employees of the company. Codpiece face Thanks for at least recognising my point. Being that the company has messed airports around - including the one i work for. Mytravel have not treated their staff or customers well and the people who stand up for such a company should question whether they are doing it on a personal level or a business level. My own company. Its a dream, but it will be a company that certainly chooses it employees well, spreads an atmosphere of love TO its staff first, then its customers. We will not be taking on people that believe in propping up poorly run company's that put the rest of us at risk. And finanly if its not viable it won't happen. Thats the nature of business. Jet |
loveJet,
Being that the company has messed airports around Wishing that a specific airline/ tour op will go bust is at best childish, at worst contemptable, particularly from someone (apparently) connected with aviation. There are plenty of other companies who are milking the cash cow dry (railway subsidies of 3.84 billion pounds last year). MyTravel is working with the banks and financial institutions to try and work through the problems the Group have faced over the last 2-3 years. If it does work out then approx 20,000 people worldwide will retain their jobs, salaries and careers. Or perhaps we should just follow your opinions and chuck them all onto the unemployed list! :mad: And please appraise us with your thoughts on how MyTravel could possibly worry these 'fitter' companies you refer to? If they are so 'fit' then MYT's restructure will have little or no impact on them. Of course, it would ultimately benefit some of MYT's competitors to see them removed from the equation. |
little or no impact on them?! man YOURE the one thats childish. If they owe money somehting went wrong. I hoped they would pull through a LONG TIME AGO. But it's been dragging on, and any employees who are still there would be wise to cut and run...seeing as thats what the management have been doing.
Thats the whole point of competition... that unfit companies go bust. (in laymans terms) Btw (thats by the way) airports have to spend a great deal of time and money on promoting routes, and when Mytravel suddently aborts the route; the travel agents, passengers, and airports are inconvenienced. Now if this happened once or twice we could put it down to the market, but airports around the UK have been fed up with mytravels behaviour. And the consumer will be too very soon. Jet |
No, sorry, still don't get it. MYT owe money (lots of it) to the banks and the financial institutions that lent it to them. Nobody else. Please explain how that affects the 'fitter' companies you refer to?
airports have to spend a great deal of time and money on promoting routes, and when Mytravel suddently aborts the route; the travel agents, passengers, and airports are inconvenienced. And BTW (yes I know what it means), who was being childish? Simple questions and answers. :mad: |
LJ, perhaps customers don't want to fly from said airports and that's why MYT have pulled out. It's a free market and if there is a profit to be made someone else will fill the void.
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lovejet, the last thing anybody needs is more pilots on the market. A pilot shortage is the only way we can all start to earn better salaries etc. MYT is going to break even this year, which is one hell of a turnaround, and is expected to be in profit next year. The pain we have been through is coming to other holiday companies in the future, mainly in the way of new accounting practices. I don't think MYT is the only company to have been doing strange, but legal, things with the books.
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yeah thanx B763 Jock i said that if it happens once or twice its down to the market... but the many times it has happened just won't do. You only need ask your local travel agent how they feel about MYT.
Big T: It will affect fitter companies, because it's no longer a level playing field. Small profit and big prift is one thing but when there are holiday compabies making profits (First Choice) then the ones that arn't should go the course. Anyway where did that £50m go? No-one seems to know. Is that a good company? umm...let me think... Jet sorry that last post wasnt very well written ... rushing into a meeting... Jet |
This is twice I have had to do this today.
Cut out the vitriol! Good honest debate is what we want not who is better than the guy next door stuff! If you cannot make a sentence without being gross stay off the thread. Hope that is taken in. This, for some, is a very serious issue. Don't mess with it. PPP |
MyTravel Group plc
Bondholder Voting Agreements MyTravel Group plc announces that as at 5.00 pm on 17 November it has received Voting Agreements from bondholders in respect of 0.23 per cent of the bonds. As previously announced, while the Board would prefer to implement the restructuring of MyTravel on a consensual basis, it has prepared a contingency plan in case agreement is not reached. The company has begun the process of implementing the restructuring using a scheme of arrangement under section 425 of the Companies Act 1985, which does not require the approval of the bondholders. It has applied to the court for directions to convene the meetings of shareholders and creditors required to approve the scheme, and the hearing of this application is scheduled for 18 November. MyTravel Group Chairman Michael Beckett says: "I am disappointed that so far the bondholders have not supported our consensual restructuring proposal, which I believe is more than fair to them. However I am encouraged that we have now received the support of the substantial majority of our lenders and facility providers. Restructuring the balance sheet is in the best interests of all our stakeholders. It will provide a sound basis for the business going forward and allow us to concentrate on offering our millions of customers good value, quality holidays." |
shares, for what they're worth are down 23% this morning, so something is happening..........good luck guys!!
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Restructuring the balance sheet is in the best interests of all our stakeholders My best wishes to all those who work for MYT. I believe that you will pull through, but in the future be aware of the mentality of your management. |
as I said previously, a right shower.
A colleague has just said they are sending all senior cabin crew on a teambuilding weekend in the lakes? obviously money not that tight??? |
Beardy
The plonkers who got us in this mess are no longer with us, they walked off with the family silver! Some of them are working for other Airlines and Tour Operators so we are not the only ones who need to be warned! |
Dadaposh
Cant imagine the old thousand £ sending CC to the Lakes is going to make a difference to the big picture. Given the current situ sounds like a good offer to me to keep morale up. I would also bet that the airline is a profit centre for MYT |
Mr angry..... are you serious? this is a company on their knees with debts which would make bill gates lose an hours sleep.
The point being that the company is laden with chiefs, and they now want to spend more money (which they haven't got) probably being spent on something they don't need (more feathers), thought up by a guy with a degree who doesn't know one end of a plane from the other, which has taken him well over a year to compile, from an idea he got from another large company in the black, in a completely different business to the one he's in. If you think that a shed load of cabin crew not knowing if they will have a job around xmas, having just seen a load of their colleagues/friends put on the scrap heap will think they are having a morale boost then I suggest you think again. This is a company that not only wants a sizeable piece of the pie, but wants the lot, and to cook it their way, but employs a head chef who doesn't know how to make pastry. So the odd thousand might make a hell of a difference, penny wise pound foolish as they say. |
Sending a group of senior CC on a tree huging, "love you all" weekend is total bollocks. If this story is true, then I worry for MYT.
I have long wondered where people who come up with ideas like this come from. I strongly suggest they are sacked, the money saved, and put into the resurection of the company. If you asked the work force whether they wanted a stupid weekend building lego trains etc, or a proper job I'm sure I know the workers would a; choose the later and b; the slackers would waste the time and money. Jesus, where do these idiots come from? |
My Travel
I've been looking around and can't work out what is going on at MYT now. The bond holders said no to the swap deal correct?
Where does that leave things now, I hope there is a plan "B"? I spoke to one pilot last week and they seemed quite happy, if a little busy, saying they had managed to get rid off the "dead wood pilots" which seemed a little harsh to me, as someone who left a while ago. I hope that things are on the up, and would like some more info if anyone has any, Cheers BBB |
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