Thomas Cook Fleet Reduction
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Thomas Cook Fleet Reduction
Award self 6million shares, sack 400 people. Genius.
Thomas Cook 'To Cut Hundreds More Jobs'
Holiday firm Thomas Cook has confirmed it is wielding the axe again as it continues to turn its business around.
The company is planning to cut 430 jobs which it says will "enhance the financial performance of our UK airline, improving profitability and operational efficiency".
The people affected will include pilots and cabin crew whose futures were already threatened by a partnership deal with easyJet.
Thomas Cook started to shed posts and planes from its fleet last year as it battled to recover from a near-financial collapse that saw it eventually take a new £200m loan and extend its financial arrangements amid the slowdown in consumer spending.
Its statement said: "Through our constant review of customer requirements, including the additional flexibility of third party flying arrangements, such as the partnership recently announced with easyJet, we continue to offer our customers greater flexibility and choice, in keeping with the needs of today’s leisure traveller.
"To this end we are proposing to reduce the UK fleet from 35 to 31 aircraft, returning 4 planes to the lessors at the end of their lease term with the resultant cost saving. Our in-house airline will continue to serve all of our key routes and in the last year alone transported over 6.8 million passengers globally to their chosen destination.
"Regrettably these proposals, if implemented, will have an inevitable impact on our people and we have today entered a period of consultation with our employees, with the expectation that approximately 430 roles will be impacted.
Thomas Cook said it would work with the staff affected to support them.
Thomas Cook 'To Cut Hundreds More Jobs'
Holiday firm Thomas Cook has confirmed it is wielding the axe again as it continues to turn its business around.
The company is planning to cut 430 jobs which it says will "enhance the financial performance of our UK airline, improving profitability and operational efficiency".
The people affected will include pilots and cabin crew whose futures were already threatened by a partnership deal with easyJet.
Thomas Cook started to shed posts and planes from its fleet last year as it battled to recover from a near-financial collapse that saw it eventually take a new £200m loan and extend its financial arrangements amid the slowdown in consumer spending.
Its statement said: "Through our constant review of customer requirements, including the additional flexibility of third party flying arrangements, such as the partnership recently announced with easyJet, we continue to offer our customers greater flexibility and choice, in keeping with the needs of today’s leisure traveller.
"To this end we are proposing to reduce the UK fleet from 35 to 31 aircraft, returning 4 planes to the lessors at the end of their lease term with the resultant cost saving. Our in-house airline will continue to serve all of our key routes and in the last year alone transported over 6.8 million passengers globally to their chosen destination.
"Regrettably these proposals, if implemented, will have an inevitable impact on our people and we have today entered a period of consultation with our employees, with the expectation that approximately 430 roles will be impacted.
Thomas Cook said it would work with the staff affected to support them.
in other news
While the workers are being made more efficient.....
Thomas Cook’s new chief executive Harriet Green was reportedly handed 6.2 million shares, which are now worth around more than £1 million.
According to reports, finance director Michael Healy, who was also appointed over the summer after the resignation of Paul Hollingworth, has been given a total of some 2.5 million shares, since joining the group in July. His shares are currently worth £437,500.
Thomas Cook is understood to have stresses that the shares would not vest for three years, and would be subject to “stretching” performance targets, the Daily Telegraph said.
The operator said it had spoken with major shareholders and governance bodies before announcing the plan, which is designed to act a “golden hello”.
Just under half of the shares will be awarded subject to share price targets, while the remainder will depend on financial performance goals being met by the new management team.
These targets will be determined by the turnaround plan which Green will be setting out in spring.
A Thomas Cook spokesman told the Telegraph: “The board considers is important the new management team is incentivised in the right way and from the start.”
source TTG 9th Oct
Thomas Cook’s new chief executive Harriet Green was reportedly handed 6.2 million shares, which are now worth around more than £1 million.
According to reports, finance director Michael Healy, who was also appointed over the summer after the resignation of Paul Hollingworth, has been given a total of some 2.5 million shares, since joining the group in July. His shares are currently worth £437,500.
Thomas Cook is understood to have stresses that the shares would not vest for three years, and would be subject to “stretching” performance targets, the Daily Telegraph said.
The operator said it had spoken with major shareholders and governance bodies before announcing the plan, which is designed to act a “golden hello”.
Just under half of the shares will be awarded subject to share price targets, while the remainder will depend on financial performance goals being met by the new management team.
These targets will be determined by the turnaround plan which Green will be setting out in spring.
A Thomas Cook spokesman told the Telegraph: “The board considers is important the new management team is incentivised in the right way and from the start.”
Last edited by hec7or; 9th Oct 2012 at 15:18.
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“The board considers is important the new management team is incentivised in the right way and from the start.”
Ut Sementem Feeceris
Based on an A320, four aircraft removed for a six month summer season is circa 790,000 seats out of the program. The deal with eJ of 80,000 seats represents about 10% of that capacity. How much is going out to other carriers or are TCX really cutting back capacity/packages by 700,000 seats?
Best of luck to those affected by this. (Been there..)
Best of luck to those affected by this. (Been there..)
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4 A320 @ 6-7 crews per aircraft say aproxish 160 Pilots and CC.
TC must still be sheding back room staff...
Guess it was semi expected lets hope in the medium term it comes out stronger and better for it
TC must still be sheding back room staff...
Guess it was semi expected lets hope in the medium term it comes out stronger and better for it
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golden hello
We now need to figure out if the golden hellos, are bigger than the golden trough, which the piggies will eat at, and then comes the inevitable golden handshake- re bye bye, having of course ruined the company once and for all.
Good old corporate Britain, still alive and well.
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Based on an A320, four aircraft removed for a six month summer season is circa 790,000 seats out of the program.
Each short haul aircraft will average 2.5 rotations per day, 180 seats per aircraft = 1800 seats per day (packages are sold as round trip so you can't count seats outbound & inbound separately). For a 182 day summer season that's 327,600 fewer round trip seats.
Statistics aside, this is another sad day for people in aviation. The guys and girls in TCX have been through this too many times now. Moral must be at an all time low.
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Worse than that. It's 4 75's that are going plus an A320 for the scrap man. The Condor 767 is coming back from CFG. In all, almost 800 seats lost.
This is what happens when the board go on a spending spree....
This is what happens when the board go on a spending spree....
Last edited by 763 jock; 9th Oct 2012 at 18:08.
Ut Sementem Feeceris
packages are sold as round trip so you can't count seats outbound & inbound separately
...... But 4x757 plus 1xA320 = 1875 seats/day (inc returning 767) which is over 340,000 per season 
Last edited by A4; 9th Oct 2012 at 18:19.
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Loss of 340,000 seats.
The seats on Thomas Cook are uncomfortable, so no great loss. Mind you, the seats on Thomson's are no better, and as for easyJet and Ryanair.....you might as well sit on a Wythenshawe park bench..
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Thomas Cook Fleet Reduction
Surely the 757s have been planned to go for a while. One is currently in the hangar at MAN being transferred to FedEx and should ferry to VCV next week and the other 3 by March.
Last edited by Flightmech; 10th Oct 2012 at 07:42.
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Out of curiosity;
Of the 4 leased 757s being returned and one scrapped 320, at, lets say 7 crews each - are we talking 35 pilots at risk/voluntary redundancies in the pipe?
If so, what's the date of joining of the bottom 35? I'm not in the know, but I presume there hasn't been much hiring in recent years; are 3+ year employees facing the chop?
My understanding is that flight deck culls have been thus far avoided due to redundancy package takers in recent years... Again, no insider knowledge, just grape-vine stuff.
Just seems like a poor state of affairs IF the bottom few dozen still happen to have a few years service.
Of the 4 leased 757s being returned and one scrapped 320, at, lets say 7 crews each - are we talking 35 pilots at risk/voluntary redundancies in the pipe?
If so, what's the date of joining of the bottom 35? I'm not in the know, but I presume there hasn't been much hiring in recent years; are 3+ year employees facing the chop?
My understanding is that flight deck culls have been thus far avoided due to redundancy package takers in recent years... Again, no insider knowledge, just grape-vine stuff.
Just seems like a poor state of affairs IF the bottom few dozen still happen to have a few years service.
Ut Sementem Feeceris
I thought LIFO (Last In First Out) wasn't allowed any more? Isn't it a meritocracy now? Hopefully volunteers and part time options will reduce the trauma....
How would meritocracy work, rather than seniority, when (presumably) RT/PCs are being passed to company standard?
Unless you have a very strong TU or a very good relationship with the employer you have no say and if your face doesn't fit they can and will find a way to get rid of you.
Sorry but that is how it is these day. Seen it happen this year.
Good luck to all involved.
