MyTravel - Crosland goes (again)

[newswatcher]

From the BBC(28/2):

"David Crossland, founder and chairman of struggling UK holiday firm MyTravel - formerly known as Airtours - has quit with immediate effect.

Mr Crossland had originally planned to go last November but put off his retirement when the company hit a crisis last year.

His deputy, Eric Sanderson, is to take over as chairman.

Last year, MyTravel racked up annual losses of £72.8m.

It was also forced to restate its profits for the previous year.

Instead of the £81m profit announced in 2001, MyTravel said it actually made only £62m.

The company was given a reprieve by its banks in November to allow it to continue trading until the end of 2003."

[willoman]

Rather dramatic to see the founder/chairman resign after only 4 months effort to rescue MYT - not long enough to have achieved anything.
Did he jump or was he pushed?
A worrying time for MYT employees.

[Flickroll]

Strange that he should go 3 weeks before their AGM, however given the fact that he owns 50,000,000 shares (Annual report to shareholders), he must be satisfied that the 'current' board are capable of protecting his retirement fund.

He has done a great deal of good for all of us in the leisure side of the industry over the last 20 years, and I for one wish him well.

[PA38]

From the stock exchange web site, perhaps the shares staying around 0.15p might have something to do with it


The Board of MyTravel Group plc announces that Mr David Crossland, the Group’s founder and Chairman, has retired from the Board with immediate effect. The Board have accepted that resignation with sadness, and David ceased to be a director of the Company on 27 February 2003

David leaves the Group with the Board’s thanks and deep appreciation for his efforts in building and developing the Group over the past 31 years from a two branch travel agency, into one of the major leisure travel groups in the world.

MyTravel Group plc announced on 17 October 2002 that Mr Crossland had agreed to postpone his retirement, originally planned for November 2002, for up to a year to help facilitate the transitional process for the new management team. On 17 October 2002 MyTravel Group plc announced that Peter McHugh and Philip Jansen were appointed as Chief Executive and Chief Operating Officer respectively. On 28 November 2002, the Company announced that Kazia Kantor was appointed as Group Finance Director.

Mr Crossland will be succeeded as Chairman, in a non-executive capacity, by Eric Sanderson, currently Deputy Chairman, with immediate effect.

Commenting on Mr Crossland’s decision to retire, Peter McHugh, said:

“David Crossland’s contribution to the global travel industry over the last forty years has been enormous. Thanks to his remarkable vision and entrepreneurial drive he has enabled many millions of people to enjoy an overseas holiday at an affordable price. We wish him a much deserved long, happy and healthy retirement.”

Mr Crossland, in announcing his retirement, said:

“This was a difficult decision and it is a sad day for me after 40 years in the travel industry. However, I leave MyTravel in excellent hands. I am proud of the Company I have led and of the people in MyTravel and I wish them all continued success.”

[sky9]

Don't they talk some piffle sometimes
"I leave MyTravel in excellent hands. I am proud of the Company I have led and of the people in MyTravel and I wish them all continued success"
If we flew aircraft they them managed the business we would take a scheduled fight to Madrid and end up in Malmo.

Shares at was it 800p a couple of years ago, now worth 15. No doubt they will have performance related pay based on raising it from 15 to 20.

[hujeorgan]

Ah but there you go Sky9. You see, you don't have to manage a multi million pound organisation, you wouldn't have a clue. All you have to do is sit on your a..e and criticise everyone else from a position of ignorance and arrogance. I'm sure that David Crossland will forever regret not popping down for some advice from his drivers, but then again he obviously knows better. Must be wonderful to be such a smart ass.

[tailscrape]

You sir are the one who needs to get a grip. We do a job that involves carrying hundreds of loved people around in a metal flying tube often into sh?tty conditions at tiring times of day.

Our job and terms of service are NOT linked to lower paid professions.

I see you have got involved in casting ill considering spoutings on the FLYJET post too..... if you want to work for low wages in this industry, just continue saying what you say. After all, the beancounters read this page too you know.

Maybe you could advertise your address as a free flying whore on a PPRUNE banner and offer yourself for free?

As for slagging others off here, look at your posts and think again.

[Lou Scannon]

My experience of pilot' ability to manage multi-million concerns is based on the bitter experience of being around when the experts screwed it up.

I doubt that one pilot in a hundred could or should make it to the board. However, over the years the pilots have proved very adept at making calculations on the back of a fag packet that subsequently proved correct.

We can all work out the approximate operating costs of the aircraft, we can estimate the revenue from what pax tell us and the offers we see in travel shop windows.

Putting the two together is simple enough. Unfortunately when we have then mentioned, to one of those "meet the bosses" meetings, the losses we must be incurring on specific routes, we were always told that we didn't see the overall picture and that everything was fine.

Perhaps we should introduce CRM to the boardroom!

[ajk]

No chance of losing the arrogance I see. Driving loved ones around heh, so do train drivers. Back of a fag packet, spare us please. Huge has got a good point.

[sky9]

Hujeorgan
Think about your username; I didn't choose it. ;)
What I was whinging about was the self congratulatory tone that these people use when they make a "***kup. But then with a name that that; your not management are you?:D

Edited for poor english!!

[tangocharlie]

Mr Crosland may have done well to build Airtours/MYT into a major avaiation player, but in the end he was in charge of the company that has experienced severe problems and is therefore accountable. Worrying time, as there are probably more problems ahead in the next 6 months or so.

[hujeorgan]

Don't know either of them tilos. But there are those of us on the fringes of the industry who get a bit pissed with the arrogant, ignorant and grossly inflated opinion you precious wee pilots have of yourselves.

[kick the tires]

Having just bought a load of shares in My Travel, I was looking forward to an interesting and informative debate.

Instead all I get is a playground squabble between a few supposed 'professionals' trying to score points over each other!

Take a deep breath and look at the content, the insignificance and the immaturity of your posts guys. It really is pathetic.

[beamer]

A piece of 'inside information' ( which could be totally inaccurate !)
says that MYT are still in deep trouble with March being a critical
month for the whole operation. Certainly, some other major players in the sector are expecting a change in their fortunes as
a result of developments in the next few weeks. I have no wish
to see MYT collapse as I have a number of friends and former
colleagues who are employed by them but one has to wonder
whether Mr Crosland left before more bad news made his position
untenable.

[hujeorgan]

A lot of us have got more than a few share at risk! We don't need the usual bunch of arm chair experts telling us that they could do it on the back of a fag packet.
Interestingly the Sunday Times last week was reporting sales as :-

MYT 1.18m holidays compared with 800000 last Jan 02
Tui 864000 " " " 933000
T Cook 623000 " " " 625000
FC 637000 " " " 595000

Obviously a significant increase, the margins of course matter but it would seem that the customers believe that the company will keep going and so do I.
It may be that D C has done enough and can now retire as he intended last year.

[kinsman]

I am very sorry to see Mr Crossland go under such a cloud. True the problems may be of his own making but I have had ten good years of employment thanks to his efforts, so I would just like to say thanks very much.

However the next few months turn out it has been fun (most of the time) working for Airtours/MYT.

;)

[willoman]

Perhaps Crossland went early in order to protect his own pension rights.
Remember - pensioners 'in payment' take financial priority over all others who are owed cash in the event of any company's demise.

[Pilot Pete]

SAles figures are interesting as reported hujorgan. You are right about the margins too. I have just dropped the in-laws of at Manchester for one of their two MYT holidays this summer. They booked with them because they, and I quote, 'couldn't believe the offers'. They are nearing retirement and holiday 3 to 4 times a year. I know this is just one example, but if they are giving the holidays away it does not bode well for the future stability of the company.

It all comes down to the tour operator getting the sums right because the airline can fill the aircraft on every sector and the airline arm can make money, but if that is only offsetting a loss by the other arm who have sold the package too cheaply then the 'vertically integrated group' as a whole doesn't make any money.

(don't all start telling me not to spread bad rumours about an airline. The first paragraph is an observation and the second is a generic statement about all vertically integrated airline/ holiday groups) I wish MYT all the best for this summer and the future.

PP

[Lou Scannon]

Hugeorgan: I think you will find that many of this years "sales" with at least one company are in fact cancellable at no cost to the customer. That means they cannot be really counted until the final amount is paid. Perhaps someone knowledgeable could confirm or deny that suspicion.

Either way I retain a real admiration for the Crosslands of this world having worked for a fair few of them. My criticism is that most of them fail because they eventually stop listening to people at the "front" who may not know how to run a million pound company but can still use a fag packet for the simple calculations.

I too have heavy share holdings in the IT sector and am hoping that this summer will turn out well.

PS. I can see no connection between yourself and AJK. Your spelling is much better!

[Jonty]

Firstly you cannot make a profit when your selling holidays at £99 your just storing up problems for the future.

Plus, with the accounting scandal that has befallen MYT can these or any other figures they release be belived? This may be why there shares are still 15p

[hujeorgan]

12p now. Very worrying, a collapse would not do any of us any favors. I don't think that the other operators would expand capacity much, leading to lots of us being out of work and a buyers market for employers.

[Desk Driver]

I have to point out the Irony.

Gulf War I. = Made the then Airtours a major player (ILG RIP)

Gulf War II. = Could hand the now MyTravel the ILG role.


Good luck to all in My Travel.

I've said it before & I'll say it again.
A Good Workforce let down by Poor management!

[763 jock]

Jonty, interesting point re the £99 holidays......
In the same vain I ask how Ryanair, easy etc etc are making any money when you can fly for the price of a couple of pints in the local? :confused:

[Desk Driver]

763 JOCK

I ask how Ryanair, easy etc etc are making any money when you can fly for the price of a couple of pints in the local?

The simple answer is "you cant"!

However you can dump you empty seats that you know will be empty regardless for the price of a pint or 2 & create a demand in the process. Then you yield control your way up to a profit. This in turn creates the
"If Ryanair / Easy are £150 then what must the others be?" syndrome and people will book at higher prices believing they are still low cost.

This works fine until the market becomes so saturated that you can't yield manage up because a competitor is always cheaper than you. Then you find your stuck with empty seats and the seats you have sold are at no margin anyway.

This is the problem with the over capacity we have in the Charter market currently.

The only way to avoid this happening to the low cost market is to try not to compete with other low costs too much and of course by up the competition, but, how long that can continue I just don't know.

[Beaver]

MYT shares down another .75p today, now standing proud at 11.25p! Where will it all end - get the safety net out, they're coming down!!

[kishna]

The future of Airtours - occasionally known as MyTravel - is now only in the hands of the banks. They have had a reprive until November, agreed, but if bombs start falling, will they be getting cold feet....I think so.

[fireflybob]

I sincerely hope that MyTravel survives having worked for one company that ceased trading. It is an experience I would not wish on my worst enemy.

My feeling is that we are in for a challenging period with the UK economy and aviation is going to go through a tough time so it's time to batten down the hatches and weather the storm. Don't put all your eggs in one basket, stay flexible and get your cv in the post to everyone!

Good Luck to all in My Travel - hope it all works out ok!

[El Desperado]

I don't think it's all doom and gloom now. A few months ago, I thought we were done for, but the company has a huge amount of assets they could sell and keep the core UK holiday business going.

The crisis was never about bottom-line profitability - it was about crap management and disastrous accounting. Whether or not that has been resolved remains to be seen.

The airline has picked up some contracts to some real ****-holes, as well as the very lucrative Hajj, and some ermm military work which I'm sure you all saw on the BBC (idiots). I think we can expect to see more and more flights into war-torn regions as the long-haul holidays fall off ! MYT-666 to Burundi anyone ?! If it keeps the airline going, I couldn't care less. I have a big pile of anti-malarial tablets and if the company goes under, I will personally insert every single one into the backsides of the people responsible, as there is no reason whatsoever for this company to go to the wall.

On paper it's good - certainly better than Brittania, and our major gripe seems to be discovering company news on Teletext and here, before we're told about it !

[ATIS]

El Desperado

Would you care to elaborate on these "****-hole" destinations that they maybe flying to. Surely as the flights are full there is a demand for such destinations

[El Desperado]

They are contracts, ATIS. Nothing to do with holiday-makers. Position 233 Joe Bloggses into Africa with their 100Kg of ermm luggage.

Djibouti is the one that springs immediately to mind and, yes, of course they are full....and hopefully earning a shed load of money to offset the deficits that have been run up. There are other contracts we have to equally unpleasant destinations, but it's better than sitting on the ground, idle. Just :)

The demand is there.... it's just not your bucket 'n spaders to Tenerife, but the company seems pretty pro-active in pursuing alternative contracts to holiday bookings. I don't personally have a problem with this, but it might be time to get that sand-camouflage scheme painted up !

[Mr Angry from Purley]

Myt have an excellent Commercial team led by the "Gov" who would sell his wife if he could make a handy profit and Ad
Hoc specialist Lee lanky tosser, whose only interest when i left
was could he have my food card...
Had i still been there they probably would have gone down given my Airline track record but i'm long gone so confident Myt will be here for the future
Wot no Crews?


:mad: :mad: