TUi the next TCG

[Satoshi Nakamoto]

Given the dismal results from TUI yesterday, is TUI the next TCG?

[Sobelena]

Dunno, cuz i haven't a clue who or what TCG is!

[Scottie Dog]

I presume he is referring to Thomas Cook Group by the initials used.

I won't make any other comment.

[Mr @ Spotty M]

The answer is no.
Completely different circumstances from Thomas Cook.
TUI have a wider portfolio of products, which TC does not have.
Main difference is TUI have a much newer fleet of aircraft, with old models being replaced with the 787 and the Max.
Yes the Max issue is eating into there financial performance and bank balance, a good percentage of the max cost will be reimbursed in various ways by Boeing in the long term.
The big issue with TC is an ageing fleet which needs replacing, with no funds to do so.

[Mr Optimistic]

Keep an eye on the debt ( climbing).

[Boeing 7E7]

The answer is no.
Completely different circumstances from Thomas Cook.
TUI have a wider portfolio of products, which TC does not have.
Main difference is TUI have a much newer fleet of aircraft, with old models being replaced with the 787 and the Max.
Yes the Max issue is eating into there financial performance and bank balance, a good percentage of the max cost will be reimbursed in various ways by Boeing in the long term.
The big issue with TC is an ageing fleet which needs replacing, with no funds to do so.

TUI’s successful business model has little to do with its fleet of new aircraft but rather it’s ability to sell its products in a challenging market, which it has done with great success. The only similarity between TUI and TCG is that they are both I’m the Inclusive Tour business, but that is it. The business decisions each have taken have been very different and the results speak for themselves. Sadly for all at TCG it hasn’t worked so well for the company and they are saddled with HUGE debts which are increasingly becoming a liability.

[Satoshi Nakamoto]

TUI … £1 billon net debt ,

will research that over next weekend.
They are predicting an EBIT drop of -26% full year due to the MAx737 issues
May well be worth a short .
Could be the next TCG

[clipstone1]

TUI control much more of their product chain, retail, transport (aka airlines), in resort with some 80 global destination management companies, who arrange or provide the transfers and excursions as well as a large proportion of the hotels, especially the differentiated product. They also have 3 cruiselines and are moving into river cruising too. Far more control than TCG of where the customer spends their cash and far less cash handed over to non-group businesses.

The current European financial situation and the MAX issues are hitting them hard, especially with the number of wet leased aircraft in for the whole summer to cover.

Sales are up, share price has risen as a result of the 3rd quarter announcement.

[beamer]

Nakamoto San seems to have a downer on Tui !

[Water pilot]

a good percentage of the max cost will be reimbursed in various ways by Boeing in the long term
I wouldn't exactly bet on that one, that isn't how business works in 'Merica.

[rog747]

I wouldn't exactly bet on that one, that isn't how business works in 'Merica.

About 2 months ago TUI announced that the costs for the MAX debacle (if the aircraft remained OOS until the end of the summer season) would be in excess of £600m