Thomas Cook Gone
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Jet 2 are not only operator being accused of 'cashing in' with silly prices. Probably a relatively short term issue where there's a rush of bookings far higher than normal movement at this time of year and the algorithm responds by upping the price.
Pegase Driver
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RoyHudd :
well it looks like it is not that simple after all :
source : https://onemileatatime.com/condor-airlines-future/
Profits from late 2018 onwards from the German and ~Scandinavian affiliates were never repatriated to TCG. Their books were kept artificially positive as part of the plan to hive off these "companies" on the open market. They ended up cash-rich.
Yesterday Condor received a guarantee from the German government and the Hessian State Government for six-month bridge loan in the amount of 380 million EUR. This is also subject to approval by the European Commission, at which point the loan can be disbursed.
This was done in order to prevent liquidity issues at Condor, resulting from the insolvency of their parent company. [...] Condor as such was profitable, but that doesn’t mean they had the liquidity necessary to operate
This was done in order to prevent liquidity issues at Condor, resulting from the insolvency of their parent company. [...] Condor as such was profitable, but that doesn’t mean they had the liquidity necessary to operate
Seems to me, that senior management at TCUK got themselves into a position they couldn't handle, saddled the company with debt it couldn't repay, and then went bankrupt. But, sure, blame someone else if that makes you feel better. I, on the other hand, am only happy that our fellow airline employees in Germany and Denmark are still able to go to work and collect a pay check, whilst of course feeling immensely sad for the innocent staff at TCUK, who lost their jobs because management was not up to the task of running the company.
I have, and it seemed to indicate the mothership (TCUK) did not wish to repatriate the funds in order to make TCNE and TCDE look good for prospective buyers. That TCUK saddled itself up with a mountain of debt when they bought the German and Nordic travel agencies, and subsequently 'fudged' the books to make them look attractive, is hardly something you can blame either the Nordic or German entities for.
Seems to me, that senior management at TCUK got themselves into a position they couldn't handle, saddled the company with debt it couldn't repay, and then went bankrupt. But, sure, blame someone else if that makes you feel better. I, on the other hand, am only happy that our fellow airline employees in Germany and Denmark are still able to go to work and collect a pay check, whilst of course feeling immensely sad for the innocent staff at TCUK, who lost their jobs because management was not up to the task of running the company.
Seems to me, that senior management at TCUK got themselves into a position they couldn't handle, saddled the company with debt it couldn't repay, and then went bankrupt. But, sure, blame someone else if that makes you feel better. I, on the other hand, am only happy that our fellow airline employees in Germany and Denmark are still able to go to work and collect a pay check, whilst of course feeling immensely sad for the innocent staff at TCUK, who lost their jobs because management was not up to the task of running the company.
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I have, and it seemed to indicate the mothership (TCUK) did not wish to repatriate the funds in order to make TCNE and TCDE look good for prospective buyers. That TCUK saddled itself up with a mountain of debt when they bought the German and Nordic travel agencies, and subsequently 'fudged' the books to make them look attractive, is hardly something you can blame either the Nordic or German entities for.
Seems to me, that senior management at TCUK got themselves into a position they couldn't handle, saddled the company with debt it couldn't repay, and then went bankrupt. But, sure, blame someone else if that makes you feel better. I, on the other hand, am only happy that our fellow airline employees in Germany and Denmark are still able to go to work and collect a pay check, whilst of course feeling immensely sad for the innocent staff at TCUK, who lost their jobs because management was not up to the task of running the company.
Seems to me, that senior management at TCUK got themselves into a position they couldn't handle, saddled the company with debt it couldn't repay, and then went bankrupt. But, sure, blame someone else if that makes you feel better. I, on the other hand, am only happy that our fellow airline employees in Germany and Denmark are still able to go to work and collect a pay check, whilst of course feeling immensely sad for the innocent staff at TCUK, who lost their jobs because management was not up to the task of running the company.
Indeed, but I still don't understand why an utterly incompetent management at TCUK is the fault of TCDE and TCNE, let alone why that would quality them to have acted "disgracefully".
TCUK decided to have TCDE and TCNE as separate legal entities (actually, several legal entities) incorporated in Germany, Sweden and Finland. Each of those entities have a legal obligation to look after their own house first and foremost, although it's plainly obvious they would have been acting under the orders from TCUK. But when the smelly bits are fast approaching the fan, those legally responsible for those entities have a responsibility towards those first and foremost. If TCUK had wanted it another way, they should have organised themselves differently.
Fact is, the management of TCUK was incapable of running a travel agency, in stark contrast to management of the TCDE and TCNE affiliates. That's why the house came tumbling down, and the decision by TCUK management not to repatriate funds in order to prop of those entities for a possible sale, is yet another example thereof. I'm not going to say they acted criminally, but they sure as shyte were not up to the task of running the company they were entrusted with - to the detriment of their hard working and loyal employees.
TCUK decided to have TCDE and TCNE as separate legal entities (actually, several legal entities) incorporated in Germany, Sweden and Finland. Each of those entities have a legal obligation to look after their own house first and foremost, although it's plainly obvious they would have been acting under the orders from TCUK. But when the smelly bits are fast approaching the fan, those legally responsible for those entities have a responsibility towards those first and foremost. If TCUK had wanted it another way, they should have organised themselves differently.
Fact is, the management of TCUK was incapable of running a travel agency, in stark contrast to management of the TCDE and TCNE affiliates. That's why the house came tumbling down, and the decision by TCUK management not to repatriate funds in order to prop of those entities for a possible sale, is yet another example thereof. I'm not going to say they acted criminally, but they sure as shyte were not up to the task of running the company they were entrusted with - to the detriment of their hard working and loyal employees.
Indeed, but I still don't understand why an utterly incompetent management at TCUK is the fault of TCDE and TCNE, let alone why that would quality them to have acted "disgracefully".
TCUK decided to have TCDE and TCNE as separate legal entities (actually, several legal entities) incorporated in Germany, Sweden and Finland. Each of those entities have a legal obligation to look after their own house first and foremost, although it's plainly obvious they would have been acting under the orders from TCUK. But when the smelly bits are fast approaching the fan, those legally responsible for those entities have a responsibility towards those first and foremost. If TCUK had wanted it another way, they should have organised themselves differently.
Fact is, the management of TCUK was incapable of running a travel agency, in stark contrast to management of the TCDE and TCNE affiliates. That's why the house came tumbling down, and the decision by TCUK management not to repatriate funds in order to prop of those entities for a possible sale, is yet another example thereof. I'm not going to say they acted criminally, but they sure as shyte were not up to the task of running the company they were entrusted with - to the detriment of their hard working and loyal employees.
TCUK decided to have TCDE and TCNE as separate legal entities (actually, several legal entities) incorporated in Germany, Sweden and Finland. Each of those entities have a legal obligation to look after their own house first and foremost, although it's plainly obvious they would have been acting under the orders from TCUK. But when the smelly bits are fast approaching the fan, those legally responsible for those entities have a responsibility towards those first and foremost. If TCUK had wanted it another way, they should have organised themselves differently.
Fact is, the management of TCUK was incapable of running a travel agency, in stark contrast to management of the TCDE and TCNE affiliates. That's why the house came tumbling down, and the decision by TCUK management not to repatriate funds in order to prop of those entities for a possible sale, is yet another example thereof. I'm not going to say they acted criminally, but they sure as shyte were not up to the task of running the company they were entrusted with - to the detriment of their hard working and loyal employees.
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TCUK did not decide what happened or otherwise with TCDE or any other part of the group. Fankhauser Debuss and co were all in Group roles and made those decisions for the group.
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Last edited by cessnaxpilot; 28th Sep 2019 at 16:14.
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One more simple answer to the question why TCUK was grounded while Condor and Scandinavia was continued is the passenger base.
TCUK had 80% TCUK passengers -> as long TC is not kept alive, there is no sense to keep an airline alive only having 20% loadfactor remaining, without having any strcutures to sell the other 80% somehow in due time.
TC Scandinavia had initially the same problem, they had 100% passengers from their nordic tour operators. But since the tour operators are continued, the airline is flying also, because it the still has its passenergs.
Condor is similar, it only has 20% TC passengers and 80% single seat and other non-TC tour operators bookings, which makes much more sense to keep them flying. If Condor is able to compensate the missing 20% TC passengers in future, they are able to survive.
regards
TCUK had 80% TCUK passengers -> as long TC is not kept alive, there is no sense to keep an airline alive only having 20% loadfactor remaining, without having any strcutures to sell the other 80% somehow in due time.
TC Scandinavia had initially the same problem, they had 100% passengers from their nordic tour operators. But since the tour operators are continued, the airline is flying also, because it the still has its passenergs.
Condor is similar, it only has 20% TC passengers and 80% single seat and other non-TC tour operators bookings, which makes much more sense to keep them flying. If Condor is able to compensate the missing 20% TC passengers in future, they are able to survive.
regards
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LH would only be interested in the name and the slots and I see no other suitable suitor ...
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Most of the " cheapies" cruising the European skies belong to the " People Mover " category. Condor is still a airline, and is run like a airline.
I took this photo a year ago. A beautiful piece of equipment still, but also one of the problems - the Condor fleet is over aged. A buyer would
have to buy new aircraft. However, I´ll be flying on Condor in a few days, and hope it will be on this old bird.
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I think the fleet is not the major problem, most of the fleet is leased, they need to lease new(er) aircrafts - the cost of fleet swap is the major cost. But, you have to find a new investor putting money into a existing strategy, refund bailout, beeing at least 51% European and maintaining a good relationship to LH. A long range base in Frankfurt is only possible with a good relationship to LH, independant if LH is part of a future solution for Condor or not. They may have a chance, but its a difficult way to go.
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Unfortunately the fundamentals are bad for Condor - they’ll not be on life support for long. Their business doesn’t have the right stuff to warrant a risky approach to merger or otherwise.
Their FFM slots are not like those at LHR for example
Their FFM slots are not like those at LHR for example