MY TRAVEL (again)

[tailscrape]

In this week's SUNDAY TIMES business section, a rather nasty piece of reading.:MyTravel to axe seventh director
by Dominic O’Connell



BELEAGUERED holiday company MyTravel is to wield the boardroom axe again with the departure of Duncan Wilson, its UK chief executive.
Wilson’s resignation is to be announced with the full-year results, which are expected in the next 10 days. Wilson will be the seventh director to leave in the past 12 months.



Wilson has paid the price for a disastrous year’s trading. The company this month issued a shock profit warning, saying it had made a loss during the summer months — traditionally the most lucrative part of the year for British tour firms. The company said it had been forced to discount unsold holidays, resulting in “lower margins than expected in the UK tour operating businesses”.

Analysts expect MyTravel to report a loss of about £285m for the full year, nearly double previous estimates. Last night the company refused to comment on Wilson’s departure.

MyTravel’s woes go back to last year, when it issued a string of profit warnings and uncovered a £50m black hole in its accounts.

It has since lost David Crossland, chairman and founder, Tim Byrne, chief executive, David Jardine, finance director, Richard Carrick, global development director, Mike Lee, aviation director, and Kazia Kantor, finance director.



##

So, there we go. Proof if needs be that it is not just the MAIL group of newspapers that report on MY TRAVEL.

I only say this, because they have got a lot of flak for it in the past.

Perhaps this Dominic Connell reporter blokey used to be a MAIL trainee?:(

edited because I forgot to say which paper... sorry chaps.

[spy]

Tailscrape

The Times have run many stories over the last year. The difference between them and the Mail is that the Mail like some on these forums have their own agenda! The Times story is just reporting the facts, the Mail has added a few of it's own and gone out of it's way to make life more difficult for MYT.

Glad to hear it is only £285 million, I was expecting the loss to be much higher!

I know you like to stir things on these forums and that can be fun! But do us all a favour and leave MYT alone they have enough problems and 20000+ worried staff as we approach Christmas! So show a little Christmas spirit.

:ok:

[carlos vandango]

:zzz: :zzz: :zzz:
so how many pages will get dragged out for..AGAIN?

[beardy]

By the sound of it only ten day's worth of comments to go.

[LIMA OR ALPHA JUNK]

Losses of £285m will attract the interest of all the newspapers next week unfortunately, not just the Daily Mail.

Lets hope that it is the turning point for MYT.

[newswatcher]

They appear to have survived the EGM on 17/11, when plans were approved for the sale of the cruise booking agency for £65.9m, the online hotel room agency WCT for £29.9m, and the car rental business Auto Europe for £50m. It is understood that this will give them sufficient working capital for the next 12 months.

[WEBLUEIT]

What a shame that Airtours as it was known then didn't stick to being a small - medium hoilday Company with its own airline instead of trying to snap everything up insight and being the big 'i am' in the travel industry. Suppose the the bigger they are the harder they fall!!

Cosmos seem to be be riding the travel storms well enough along with Monarch and stayed the same over the years without getting too big!!

[tailscrape]

Spy,

Good luck then, and Seasons greetings to you.

[rupetime]

Friday 05th December 2003.

[joeyr]

I have recently heard that certain flight deck crew members in My Travel have been given the nod to find alternative work...Reason is they expect to close the doors within the next 9 months!!

Anyone out there heard anything else??

Beach Boy

[Hulk Hogan]

Well I have heard from many people in MyTravel that they will pull through and survive but will gradually reduce to a much smaller company like it was a few years ago.

9 months? doubt it when the problems started it was MyTravel would not be around by the summer of 2003 and then it was going bust in September and after September passed it was November and now we are in December and they are still here and have enough capital to go on for another 12 months.

MyTravel has said it has more non core businesses it can sell of to raise capital but only if it needs to and at the moment it does not need to sell anymore businesses.

Good luck to the folks at MYT.

[tailscrape]

Hulk,

The problem is that the money, and specifically things to sell in order to raise money are running out.

If MT are to be smaller, they should bite the bullet now and downsize everything.

However, the banks will not be happy, because in a nutshell a small company will not make a lot of money in the good times. It won't lose a lot either though. But, banks do not work like that... they believe you can make money come rain or shine...

So, radical action is needed I believe because I am not sure if what they are doing now is enough...

[Jack The Lad]

Tailscrape

You reckon you are just 'a feisty terrier'? I've got to say that looking at your various posts to date, you are none other than a very vindictive, over-vocal, nasty and spiteful individual.

You have too much to say on every topic, regardless of any 'sensitivity' that is deserved and seem to relish in anyone else's agony or misfortune. It also seems very obvious who you work for and the self interest that oozes out of your verbal diatrabe (diarrhoe, might be more appropriate) is plain to see.

What the F&&^*k would you know what the banks want?

I'm certain that your 'standing and experience' in this business does not give you the authority for your views to be take seriously.

'Wind it in' sunshine :D

Happy Christmas, btw.

[kinsman]

Need anyone say more!

[mono]

Jeez Jack,
Got out of bed the wrong side this morning?

:hmm:

Tail' was just making a comment.

In my opinion an airline like MYT that can't make a profit in the summer has to ask itself some serious questions.

However there are still a few things in the bag that could be sold. They are a global brand and could get rid of some of their overseas affiliations. But after a while there is only so much you can sell and the question has to be asked 'why are they not making a profit?'

[spy]

Tailscrape you never learn do you!

Joeyr I don't know who told you we have been given the nod but I can tell you they were talking out of their BTM like one or two others I could mention.

Now I seem to recall the moderators closed the TC thread due to a lack of substantive news! Wonder if they are going to be even handed?

[Jack The Lad]

Mono, no I didn't get out the wrong side of the bed this morning :p

Tailscrape 'always' has a comment to make, trouble is they are always vindictive etc (go read last post again for all the other adjectives).

PPRuNe, imho, would be a better place without his kind of c*&p. If he can't keep a civil tongue in his head, then he should take up another hobby (read, hobby = occupation). He's so bitchy, he would do better the other side of the cockpit door, and meet his 'cummupence'!

[tailscrape]

jack the lad

Unlike you, who may not have any education at all, I spent several years working IN THE CITY." so what you say?"

Well, I spent a good deal of that time as a proprietary trader for a few LARGE BANKS (some of whom may have interests in MYT).

In addition, I also used to trade the AIRTOURS shares in my book on a daily basis.... so, I think I am possibly entitled to comment fairly. Do you?

My comment was not vindictive or ambiguous.

I posted an article that appeared in a NEWSPAPER. Hence, I pasted it here.

IT IS Rumours and NEWS..... you really should get a grip.

As for other comments? Who cares? We are talking about this now.

I wish the guys the best, and hope it works out for them, but I still have doubts that it will. Wanna say any more?

Jack, how are opinions suppressed where you work? It is Aeroflot isn't it? Or maybe you have moved to North Korea recently???

I do hope that you can remove your totalitarian brain from up your fundament before you address me next time "sunshine".

"Wind it in" please.

:p

[Jack The Lad]

Tailscrape :p

I'm off to eat my dinner right now, so excuse me if there is a little gap before I reply to you. Have lots of answers for you, sunshine :p

[tailscrape]

jack

The problem is here IMHO, that when I posted a sensible ARTICLE from a newspaper, you were the first one to be uncivil.

My comments have been echoed by others, yet you choose to annihilate me. Wonder why?

True, my past comments have been a bit of a "wind up" at times. However, this thread has actuallty been degraded by you to the extent that it is just a slanging match now.

I have repeatedly stated that I wish individuals the best, and believe me I know that many people are affected. No one wants that.

Undeniably a collapse of MT would be a disaster. Not just for the individuals concerned, but also the UK pilot force as a whole.

I am afraid that if you really do not like my comments then I cannot help you. Everyone has the right of comment and reply.

So, why don't you consider the comments you made, and revisit my first two posts on the subject. I think you will find no malice there.

Also consider the fact that whatever is posted on the hallowed halls will not change whatever results MT put out to the city whenever they are due.

The problems MT face are going to be made public again in the very near future. Do you think I will be the only one to comment then?

I hope you enjoyed your dinner.

Yours,

"sunshine"

[Jack The Lad]

Tailscrape

Dinner should be on the table, but isn't, so have time to reply to previous post of yours.

You reckon you had several years working in The City, so what I say?......I say, well, for a start, several can be classed as 2 or more. So how many was it?

"A good deal of those was as a proprietary trader"....I say, 'Well, I was a PROPRIETOR in The City, so I guess that's 4 hearts to me!'

"Not vindictive?"...Let the readers decide that one. Go read your various postings!

"R & M only?"....ask those affected by your posts, what anguish and anxiety you cause them!

"nothing suppressed?"...that's why I can call you to task as a vindictive, etc!

"Who had the proper education?"...I dunno there, but will let the readers decide on the facts here, despite it being R&N.

Your agenda is obvious to most, I suspect, 'clear as a bell to me', inspite of your attempts to 'soften' your words. I tell it as it is, sunshine!



:suspect:

[tailscrape]

jack

Sorry, but your posts just do not carry any strength.

"a proprietor". Of what?

"can be more than 2 years" etc. Try six years. That is long enough to form opinion believe me.

But, let's stay on topic here.

Let's wait and see what happens next shall we?

I am still hoping you enjoy your dinner. Mrs Jack will have it ready by now I am sure.

Cheerio.

[Hamrah]

Guys,

Can you get back on topic....please!!!

H

[Jack The Lad]

Tailscrape

Proprietor of a major financial institution, is what

More than 7 years, in my case, in that capacity

As Hamrah says, lets get back on topic; I made my points, and those that see sense will realise that

Go to go back to Cheryl now, byebye :ok:

[FLEX42]

Tailscrape.......many here have already said that you are more than a wind up merchant, you are malicious. A search of your postings reveals this; not just about MT but in many areas of aviation. No genuine fellow aviator would wish what you do on any fellow professional in your many vitriolic postings.

Remember that aviation is a small world, what comes around goes around etc. You would do well to listen and learn and eat a little humble pie.

Does your boss at DHL (ex MyTravel Boeing Fleet Manager) know who you are and quite how vindictive you are ? Think on Tailscrape or your days in aviation may be shorter than you hoped. Then again, you could always go back to the city.

Jack - Spot on, enjoy dinner.

MyTravel Colleagues - It seems that there IS sufficient capital for 12 months, you'll be leaner for sure but I don't want to see the demise of one of the few British Companies still flying.

And look what was in a pm for me from Tailscrape. If you wish to converse with me Tailscrape, do it on a public forum please....I do NOT want your private messages threatening me about what you will do if you find out who I am.



17th November 2003 13:14
--------------------------------------------------------------------------------
naughty of you.
Flex,

I do not like what you wrote about me. You should reconsider it.

As for used to work for TC, well actually pal, I still do technically.

I have not tried for many jobs as u say either. True I went for one and did not get it. So what?

On the other hand, I have been offered two others and refused them.

My comments are based on fact regarding TC, not on your diatribe rants.

Put your nappy on you sad xxxx,and if I find out who you are...be warned!!

[spy]

I see this thread is dropping into the gutter thanks to Tailscrape!

Moderators are you going to take any action as this thread would be more at home on Jet Blast!

Oh! I forgot it is a thread about MYT! So this sort of thing will run on and on. :mad:

[tailscrape]

spy

I did not drag it into the gutter at all. My fair comments attracted a barrage of abuse.

flex42

I do not know if "my boss" knows who I am. Equally it seems unimportant in the circumstances.

##

I would highlight again that I posted this because it was in the public domain. I can understand your defensiveness, but the facts remain that I have not said anything malicious or malevolent in THIS thread.

I hope at least some of you can see that, because the fact that a moderator has not closed the thread may show that there is genuine interest in discussing the situation.

[CrashDive]

Tails, don't be so sure - just keep on digging sunshine !

[LIMA OR ALPHA JUNK]

Guys Guys !

Lets not turn this into a personal witch hunt for gods sake !!!!!

Understandably a number of MYT pilots are extremely sensitive about the predicament of their employer and their own employment. In the words of Bud Fox in the film Wall Street, "we're all just one step from humility."

Reading the Easyjet thread on rostering, I wonder why, as the individuals obviously know each other, that they don't arrange a punch up at a mutually agreeable venue and time rather than waste bandwith on this website.

This is supposed to be an anonymous forum for essentially rumours and opinions. If you don't like the postings of a particular member, there is a facility to ignore them. Wasting column width on trying to infer the identity of a poster is vindictive and an affront to how this site is supposed to work.

I'm sure the results on Friday (if thats when they are released) will provoke more discussion (like it or not). Here's hoping to a better 2004 for MYT as well as BA, TUI, TCX, etc and all operators who are currently suffering.

[Big Tudor]

Myself and a number of others on PPRuNe are employed by MYT and are very grateful for it. As I have said before, they are a great company to work for and I consider that some of the guys here are the best in the business. The next few days are going to be tough for us. It goes without saying that the finals are not going to make for pleasant reading, particulalry since First Choice are releasing next week and the obvious comparisons will be drawn. Yes it is shocking that a UK IT operator cannot make money during a summer season, however please bear in mind that the results do not relate wholly to the airline but to the entire MYT group. It is bad enough reading articles in the press (often inaccurate) that the company is 'about to go under' without having it on PPRuNe every 5 minutes.
I don't know what the next 12 months holds any more than the next man (or woman), my job may not even exist this time next year. I have confidence in the guys who are in control and they have my loyalty and trust that they will turn the thing round. If they don't it's not for want of trying.

tails - I am not going to get into a slanging match with you or anybody else but the fact remains, you USED to work in the city. You don't now. You have no more idea what the banks are thinking or proposing than anybody else on this forum. I agree that your previous employment gives you an insight into how the financial markets work but it does not give you the right to issue statements about the impending bankruptcy of a company when you have no information or facts to back these statements up. It may be a game to you but this company is the roof over peoples heads and the meals on their tables. Please bear that in mind before you pontificate any further.

[Chillwinston]

Surely the fact that MYT are still flying and selling holidays for 2004 has the backing of financial institutions!

Good luck to all concerned and as a regular passenger for the last few years can I add that your still #1 in my books

[Hulk Hogan]

Well said Chillwinston, there is no reason why MyTravel can't return to profit.

People should start seeing a improvment during the summer next year, things will get a little worse over the next few months and then you will start to see the turnaround from what I've been told by people in the know.

[SLT]

As most people know, tailscrape and I don't tend to see eye to eye on many issues. Indeed, after the last little scrap on here I thought we had made a bit of progress and a "truce" had been called. But........
Tailscrape, I don't think it's the fact that you posted the newspaper article on here that has everybody wound up, after all it was as you quite correctly point out in the public domain and not inflammatory in any way. What seems to get people's backs up is the tactless and insenstive way in which you shoot back at anyone who has the gall to post any criticism of your point of view. You fire from the hip every time and whether you realise it or not, it does not increase people's respect for you. If I had to pick a word to describe you, it would be "arrogant", because that is how you come across. I'm not looking to anger you, or wind you up, but that's how I see you and I would imagine that I'm not the only one. And as for threatening one of your fellow professionals - "Put your nappy on you sad xxxx,and if I find out who you are...be warned!!" (A quote from tailscrape's PM to Flex). Well..................I leave the judgement on the professionalism behind that to the readership of PPRuNe.

At the end of the day, we are all supposed to be reasonably intelligent professional people, and I can't see how these endless slanging matches serve anyone or anything. Yes it is frustrating and worrying for us at MYT when we see the endless rumour and speculation surrounding us on a daily basis, but I personally believe we will survive. Yes the results are going to be horrendous, possibly worse than forecast, but I still believe that we will eventually pull through. I think it's going to be a long hard battle, but hopefully one we will win in the end. If we don't, then it will be us MYT employees and our families who have to live with it, not anyone else.
Thankyou to everyone who has wished us well - your wishes are warmly received. To those who wish us ill - Merry Christmas and a Happy New Year!!

SLT :O

[Kurtz]

I hope to God you survive too. If it's any comfort at all, (I fly the 146 for BACX) I would far far rather be in your Company, despite the present rumours, than in mine. At least you seem to be able to support your management - maybe YOUR management are worth supporting. I hope to God we BOTH survive, but I'd give good odds on MYT over us.
Worst case scenario - well, your aeroplanes are full, the overall holiday capacity is there, so even if the worst happens and the Company goes under, within a couple of weeks you'll have a new uniform, a new paint job, and probably most of your current salary. Pension might suffer a bit, but probably not. Be optimistic guys, you have good equipment and a fairly loyal customer base. Best of all, there's no way for the market to absorb your punters without using your aeroplanes.


Now, should I start on the sorry state of affairs at BACX???? Nope, I've run out of Diazepam............:ugh:

[SLT]

Hear, hear BITE!!! I think you said it better!!! :ok:

[Hawk]

"Put your nappy on you sad xxxx,and if I find out who you are...be warned!!" (A quote from tailscrape's PM to Flex). Well..................I leave the judgement on that to the readership of PPRuNe, and to the moderators.

SLT..we don't moderate Pmessages. If posters wish to flame or personally abuse each other than Pmessages is the place to do it. Not on the forum.

This is a rumours site, PPRuNe does not guarantee the truthfulness of the threads. We do not determine who is, or isn't qualified to post on a particular thread, it's up to the members to decide the legitimacy or otherwise of a posting. Members who personally abuse just reduce the argument to school yard silliness and do themselves and their claimed expertise no credit at all.

Those with an interest in aviation whether they are professional pilots, managers, pax etc are welcome to post on PPRuNe

Thanks
H

[SLT]

Fair enough Hawk, I take your point about the Private Messages. Post edited (slightly).

Thanks SLT :ok:

[EGCC4284]

BITE

If your not a captain yet, you should be.

Hopefully in time to come should I ever get my dream job,
you are the sort of guy that I would like to be sat next to
in a flightdeck.

Your post is the only one I've read in months that showed
exactly what this industry needs right now.

When a balloon is sinking, ballast sometimes has to
be thrown out to get airborne again.

From what I see, this is what is being done at MYT in
order to survive and I hope it works for all of you.

I hope your company is here for some time yet
and its going to be one whose door I will be knocking
on in the next year or two when things pick up.

[Buster the Bear]

Friday 5 December 2003

BREAKING NEWS: Wilson resigns from MyTravel

Duncan Wilson, chief executive of MyTravel UK & Ireland, has resigned. Hands on responsibility for the UK and Ireland businesses transfers to chief operating officer Philip Jansen. Wilson will stay with MyTravel during a transition period, reporting to group chief executive Peter McHugh. MyTravel's results for the year to end-Oct03 will be puiblished on Thursday 11 December.

[Chillwinston]

SLT - "and I can't see how these endless slanging matches serve anyone or anything."

Dont know about you but the spats and slanging matches are from people passionate about their beliefs and feelings. In this case someone has quoted an article and articles like this are for the benefit of investors with scant little regard for the company or more importantly there employees and famalies.

How many times have we all seen a company spiral into bankruptcy from ill founded stories in the paper.

The spats we all read (and have to admit, I personally do think they add to the thread) are 9/10 someone defending their beliefs and the odd 10% are just rhetoric.

[Aliens62]

As someone who has felt the pain of the axe falling (Air Europe, Caledonian), I hope all at MYT don't have to suffer the same worry and heartache that such an event brings.
I deal with the guys at MYT (airline) on a fairly regular basis, and even with all the c%^p that is flying around at the moment, they still remain cheerful, helpful and professional. Good on 'em.

So to all those who would wish ill on these good people (you know who you are) I say 'Watch yer back sunshine, next time it could be you'

TTFN

[tailscrape]

I still don't think my comments were any worse than some others on here on this subject.

I accept many of you may not like them, but that cannot always be MY fault. It is an unpalatable story, and is in the public domain.

I do not recall saying MYT would go bust on here in this thread, I only offered my view of what may help save them.

However, that may not be enough for some people, because it is an unpalatable subject.

Hawk

You are a moderator for god's sake. Stay neutral why don't you? Instead of posting PM's for everyone to see, why don't you shut the thread if it is so offensive?

Oh, it's because it isn't is it? That's why it remains open! Not offensive, just difficult reading for some individuals. I appreciate that, but it ain't no more than that.....

flex42

Always nice to hear from you.....................

[Jonty]

Ok some more rumours: Some uk travel agents are refusing to sell MYT holidays for 2004. And the TTG magazine ran a very doom and gloom artical about myt on their front page (Nov 10th) basicly saying that the CAA are being pressured to call in the 400 million bond and that the banks are no longer sure that a viable company can come out of it.

Dont know what truth is behind any of this as I didnt write the artical for the TTG and I havent tried to buy a MYT holiday.

Having been in a similar position I wish everyone at MYT good luck for the future.

ps is there any truth that they are having to subcharter flights because all the crews are leaving? :(

[tailscrape]

There you go you see.

Rumours... at least my article was fact, because the guy has resigned and everyone has seen it happen.

Some of my comments have p?ssed people off, true enough. However, at least my article was correct. In that I feel slightly vindicated that all the slatings I took were worth it.:mad:

[Buster the Bear]

Two of MyTravel’s most senior and respected directors resigned last week just days before the group was expected to unveil full-year results.

With the City now predicting losses of more than £300 million and rumours that UK and Ireland chief executive Duncan Wilson could be the next to go, overseas purchasing director Bill Allen and aviation director Bill McGrorty resigned from the troubled company.
News of their departures coincided with former deputy chief operating officer Steve Endacott publicly lifting the lid on MyTravel’s woes.

At the Travel Trust Association conference in London last week, he said: "If you owe £1 billion, the money simply isn’t there. Even if aircraft, hotels and shops are sold off, it wouldn’t make enough. The banks’ best solution is to trade out of it."

Mr Endacott added: "It would be good for the rest of the industry if MyTravel did go because it would decrease capacity. But this is not likely to happen in the short term."

MyTravel had still not set a date for the release of its results as TTG went to press, but a spokeswoman said an announcement was expected in the next couple of weeks.

She claimed Mr Allen and Mr McGrorty’s departures were unrelated and would not unsettle their "very stable teams".
Newspaper rumours that Mr Wilson was also resigning were dismissed by the spokeswoman as "pure speculation". But sources suggested it would be hard for him to stay if losses were as high as predicted, and he is rumoured to be interested in buying back Direct Holidays, which he founded.

If Mr Wilson were to leave, it would leave MyTravel with no substantial UK tour operating experience at board level. National press reports highlighting this are understood to have piled new pressure on the board to retain him.

[echomikeecho]

Tailscrape
Might one of the problems a few people have with your posts is that sometimes they come across as quite aggressive and that your opinion is the only one and the correct one? When directing comment to other PPRuNe users do you thing you might appear as confrontational and inconsilatory? This is a rumours network and understandably there has been, is and will be comment on MYT and rightly so. However, is it not surprising individuals have problems with such posts when they involve their careers, families, livelihood, mortgages etc. From reading a few of your posts I suspect that you do not take criticism well, but what the hell, at least they stimulate comment and sometimes even debate!

Happy and peaceful Christmas and New Year to all.

[Jack The Lad]

Tailscrape, sunshine

The penny still hasn't dropped has it?

I don't think anyone doubted the accuracy of the quote you pulled out of the press! So, as reported, said director has resigned; no insight or foresight on your part!

It's not what OTHER people say, it's what YOU say and the way in which YOU say it that pisses people off.

I've seen 'arrogant', 'aggresive' as a couple of words used to describe YOU; a bit generous on their part, imho.

Its YOU everyone is complaining about, not what is written in the press.

Has that sunk in?

Feel as vindicated as YOU like, but I doubt anyone here will change their opinion.:8

[tailscrape]

Jack the Lad,

Good for you. That is your opinion. You are entitled to it, just like I am to mine. So, we agree on that.

As an aside, there are two more articles in today's SUNDAY TIMES.

Both are posted below.

Sharewatch: Dickens of a difference in two tour firms
Edited by Dominic O'Connell



THIS week’s results include a tale of two tour operators, First Choice and MyTravel.
With apologies to Dickens, for the former it will hardly be the best of times, but for the latter it will definitely be the worst. All tour operators face hard times, with terrorism, Sars and lack of consumer confidence making selling holidays an uphill task, but First Choice is at least meeting its shareholders’ great expectations. This week it is likely to report pre-tax profits of £80m-£85m, in line with analysts’ expectations.



But a nasty twist is waiting for MyTravel shareholders. The company could, according to some estimates, lose more than £300m at the pre-tax level, with perhaps as much again taken in exceptional items. Wrapped up in this sorry set of figures is the admission — first made at a recent company EGM — that MyTravel made a hefty loss during the peak summer months, traditionally the time that British holiday companies make bumper profits.

Someone had to pay the price and, as we predicted last week, Duncan Wilson, chief executive of UK operations and a main-board director, resigned on Friday. In the statement accompanying his departure no mention was made of the mess the company made of this year’s trading, but you don’t have to be a genius to link that awful performance with Wilson’s abrupt farewell.

It is tempting to compare and contrast the fortunes of First Choice and MyTravel to try to divine what makes a good holiday company. But it is a meaningless exercise.

First Choice, which closed last week at 137¾p, kept its head above water because it did what any well-managed business would do when things turn sour — it cut back capacity, judged the market correctly in terms of discounts, and moved away from the cut-throat mass market to more lucrative niche products. Not exactly rocket science.

Gallingly for a company that was once lauded as the smartest operator in British leisure, MyTravel appears to have been unable to do any of this.

After shooting itself in the foot last year with a string of profit warnings, accounting black holes and top-level departures, the company has misjudged the market, despite protestations earlier in the year that its products were selling at decent prices.

Its parlous financial position means it cannot afford many more mistakes like this and as the share price indicates, falling back last week to 11p — not far off its year-low of 7½p — the prognosis is not good.


##

MyTravel fears for survival over losses of £600m
Dominic O’Connell



THE embattled MyTravel holiday company is set to unveil losses in excess of £600m when it reports its full-year results this week.
MyTravel’s pre-tax loss is expected to be about £350m, but when exceptional items are added — mainly related to restructuring costs, goodwill write-offs on disposals and accounting adjustments — it is expected to exceed £600m.



The deficit is about 10 times greater than the company’s market capitalisation, which stood at £63m at the close of trading last week.

MyTravel has been in crisis since a string of profit warnings and the discovery of an accounting black hole in 2002 led to a boardroom clear-out. But its problems were exacerbated this year by a failure to cash in on peak summer demand.

British tour operators traditionally make all their money in the summer, but MyTravel stunned shareholders last month by saying in a circular that summer trading had been “weaker than expected” — which was taken as a profit warning.

Before the circular, released at an extraordinary meeting, analysts were forecasting full-year pre-tax losses of about £170m, but they now expect the figure to be double that.

As predicted in The Sunday Times last week, Duncan Wilson, chief executive of the company’s UK tour operations and a main board director, resigned on Friday. MyTravel’s statement announcing the departure said Wilson felt “his current role had come to a natural conclusion,” and made no mention of the poor summer trading.

But executives at rival firms said the two events were clearly linked. “You do not have to be Einstein to work out that if you have bad trading in the UK and the UK boss leaves, then that might just be the reason for his going,” one said.

Wilson’s exit takes the tally of departed directors in the past 12 months to seven — all but one of them executive directors.

At the extraordinary meeting, MyTravel also warned shareholders it might not have sufficient cash to survive the next year if it did not win backing for a series of disposals. Shareholders gave their approval for the sell-off, but the company’s share price has continued to slide, finishing last week at 11p, 3½p off its year-low.

The price of the company’s debt has also tumbled. The company’s convertible bond, part of which will be traded for equity under a complicated financial restructuring agreed earlier this year, was on Friday trading at 22p in the pound.

Analysts said the company faced an uncertain future, but poured cold water on City rumours that its banks — led by Deutsche Bank and Bank of America — might take it private.


##

I will refrain from commenting, or offering an opinion, save to say that it would appear that I am not the only person who shares the same opinion.

The last line about the banks not taking the company private do say a lot IMHO.

However, the articles are both written by the same author as last week... which may invalidate their value in some people's eyes. But, seeing as they are not that complimentary, they will be dismissed as unfair and favouring other firms by some.

Discuss....

[TightSlot]

FYI Only - No comment

E-Tid has the following

BREAKING NEWS: MyTravel hit by more resignations

MyTravel has lost another two experienced tour operators with the resignation late last week of aviation director Bill McGrorty and overseas purchasing director Bill Allen. The news comes days after UK & Ireland CEO Duncan Wilson announced his decision to quit, leaving hands on control of the UK and Ireland businesses with chief operating officer Philip Jansen. MyTravel’s results for the FY to end-Sept03 will be released on Thursday 11 December.

[unwiseowl]

You say:

"I will refrain from commenting, or offering an opinion...............
The last line about the banks not taking the company private do say a lot IMHO."

Is this not an absolute contradiction by you?

[tailscrape]

unwise owl,

Perhaps. Good spot anyhow! But I did not really expand on it did I?

[newswatcher]

....and remains confident about the year ahead - BBC News (http://news.bbc.co.uk/1/hi/business/3302685.stm)

[Jonty]

..........A bit differant to MYT isnt it!

[LIMA OR ALPHA JUNK]

Maybe they'll buy MYT and they all lived happily ever after.

[newswatcher]

L or AJ, they could call the new company FCUK. Damn, already been done!

[LIMA OR ALPHA JUNK]

How about My First Choice Travel instead then ?

And sod what the European Commission has to say about it this time.

[newswatcher]

FT article (http://search.ft.com/search/article.html?id=031210001135)

[brabazon]

The MyTravel figures are out - £910m loss:

http://news.bbc.co.uk/1/hi/business/3309145.stm