Pilot Layoffs At Tcx & Myt
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Join Date: May 2004
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Pilot Layoffs At Tcx & Myt
Flight deck and fleet numbers at the newly merged airline are in excess of foreseen requirements, the new management reported yesterday in Manchester. One significant part of the rationale for the merger will be to "prune" the combined UK operation. (Cost-savings, efficiency, etc...usual financial mantras)
Expect a flurry of job applications to arrive at your local UK carrier from the unfortunates low on the Seniority Lists of both TCX and MYT. As usual, the lowest paid, and often brightest pilots will be the ones to be pushed, or at best forcibly re-located.
A real pity for the survivors who narrowly escaped in the last MYT cull in Dec '04, most of whom will be up for the chop. Company loyalty in today's UK aviation environment is for the naive and the foolish, sadly.
Interestingly, age discrimination vs LIFO may well be an issue as a side-effect of selection of pilots chosen for redundancy. Watch this space.
Expect a flurry of job applications to arrive at your local UK carrier from the unfortunates low on the Seniority Lists of both TCX and MYT. As usual, the lowest paid, and often brightest pilots will be the ones to be pushed, or at best forcibly re-located.
A real pity for the survivors who narrowly escaped in the last MYT cull in Dec '04, most of whom will be up for the chop. Company loyalty in today's UK aviation environment is for the naive and the foolish, sadly.
Interestingly, age discrimination vs LIFO may well be an issue as a side-effect of selection of pilots chosen for redundancy. Watch this space.
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Bit early to say that there will be flight crew layoffs - see the deal release:
KarstadtQuelle, the Germany based retail firm, has agreed to merge its subsidiary Thomas Cook AG, the European travel group, with MyTravel Group plc, Thomas Cook’s UK based counterpart.
STRUCTURE
The merger will be carried out via a scheme of arrangement. My Travel Directors intend unanimously to recommend that shareholders vote in favour of the Scheme.
TERMS
Following the Merger, KarstadtQuelle, which has agreed to acquire all of the shares in Thomas Cook which it does not already own, will hold 52% of the Enlarged Group, with existing MyTravel Shareholders holding 48%.
The implied offer price based on MyTravel’s GBp238 closing price on 09-Feb-07, last trading day prior to the deal announcement, and Thomas Cook's estimated equity value of approximately GBP1.06bn (EUR1.6bn), is GBp 224 per each My Travel share.
It values the entire issued share capital of MyTravel at GBP 1.04 bn (EUR1.55bn).
The implied offer represents a discount of approximately 5.8% to My Travel's GBp 238 closing price on 09-Feb-07, the last trading day prior to the firm announcement of the offer.
BREAK UP FEE
KarstadtQuelle has agreed to pay MyTravel a termination fee of GBP10 m if the Merger Agreement is terminated in the circumstances other than a material adverse change in the business, financial or trading position or prospects of the Thomas Cook Group.
POST DEAL DETAILS
MyTravel and KarstadtQuelle have established a new company, NewCo, which will effect the Merger by acquiring each of MyTravel and Thomas Cook (MyTravel by means of a scheme of arrangement). The Merger is to be effected pursuant to a Merger Agreement between MyTravel, KarstadtQuelle and NewCo. NewCo will be named Thomas Cook Group plc and listed and headquartered in London
It is expected that completion of the Merger will take place by Jun-07.
The proposed Board of the Enlarged Group will be drawn from the boards of MyTravel, Thomas Cook and KarstadtQuelle, supplemented by additional independent non-executive directors to be appointed by the Board as soon as practicable. The proposed Board will be chaired, as Non-Executive Chairman, by Thomas Middelhoff (currently CEO of KarstadtQuelle and Chairman of Thomas Cook), with Michael Beckett (currently chairman of MyTravel) being appointed as Non-Executive Deputy Chairman.
The boards of MyTravel and Thomas Cook believe that the annualised pre-tax cost benefits arising from a combination of the businesses will be at least GBP 75m per annum once the full benefits of the Merger are realised. It is expected that the full synergies will be realised within 24-30 months of Completion.
MyTravel and KarstadtQuelle anticipate that the Enlarged Group will be in a position to pay, post Completion, a dividend in respect of the year ending 31 October 2007.
CONDITIONS
The offer is conditional on:
My Travel EGM approval
Completion of the sale of Luthansa’s 50% stake in Thomas Cook by 30-Apr-07.
Court approval
EC approval
KarstadtQuelle, the Germany based retail firm, has agreed to merge its subsidiary Thomas Cook AG, the European travel group, with MyTravel Group plc, Thomas Cook’s UK based counterpart.
STRUCTURE
The merger will be carried out via a scheme of arrangement. My Travel Directors intend unanimously to recommend that shareholders vote in favour of the Scheme.
TERMS
Following the Merger, KarstadtQuelle, which has agreed to acquire all of the shares in Thomas Cook which it does not already own, will hold 52% of the Enlarged Group, with existing MyTravel Shareholders holding 48%.
The implied offer price based on MyTravel’s GBp238 closing price on 09-Feb-07, last trading day prior to the deal announcement, and Thomas Cook's estimated equity value of approximately GBP1.06bn (EUR1.6bn), is GBp 224 per each My Travel share.
It values the entire issued share capital of MyTravel at GBP 1.04 bn (EUR1.55bn).
The implied offer represents a discount of approximately 5.8% to My Travel's GBp 238 closing price on 09-Feb-07, the last trading day prior to the firm announcement of the offer.
BREAK UP FEE
KarstadtQuelle has agreed to pay MyTravel a termination fee of GBP10 m if the Merger Agreement is terminated in the circumstances other than a material adverse change in the business, financial or trading position or prospects of the Thomas Cook Group.
POST DEAL DETAILS
MyTravel and KarstadtQuelle have established a new company, NewCo, which will effect the Merger by acquiring each of MyTravel and Thomas Cook (MyTravel by means of a scheme of arrangement). The Merger is to be effected pursuant to a Merger Agreement between MyTravel, KarstadtQuelle and NewCo. NewCo will be named Thomas Cook Group plc and listed and headquartered in London
It is expected that completion of the Merger will take place by Jun-07.
The proposed Board of the Enlarged Group will be drawn from the boards of MyTravel, Thomas Cook and KarstadtQuelle, supplemented by additional independent non-executive directors to be appointed by the Board as soon as practicable. The proposed Board will be chaired, as Non-Executive Chairman, by Thomas Middelhoff (currently CEO of KarstadtQuelle and Chairman of Thomas Cook), with Michael Beckett (currently chairman of MyTravel) being appointed as Non-Executive Deputy Chairman.
The boards of MyTravel and Thomas Cook believe that the annualised pre-tax cost benefits arising from a combination of the businesses will be at least GBP 75m per annum once the full benefits of the Merger are realised. It is expected that the full synergies will be realised within 24-30 months of Completion.
MyTravel and KarstadtQuelle anticipate that the Enlarged Group will be in a position to pay, post Completion, a dividend in respect of the year ending 31 October 2007.
CONDITIONS
The offer is conditional on:
My Travel EGM approval
Completion of the sale of Luthansa’s 50% stake in Thomas Cook by 30-Apr-07.
Court approval
EC approval
At the moment we dont know where the axe will fall. I think there will be some fleet reduction but at TCX there is a large amount of summer only staff. Americans, summer only cadets ect, these are likely to go first followed by early retirement and voluntary redundancy. I would imagine its the same at MYT.
Hopefully forced redundancy can be avoided, unless there is a drastic reduction in fleet (10 or more aircraft going).
For info TCX has just (this winter) promoted 18 Fos to captain and taken on 42 new FOs.
So lets just see what is announced before making statements like that.
Hopefully forced redundancy can be avoided, unless there is a drastic reduction in fleet (10 or more aircraft going).
For info TCX has just (this winter) promoted 18 Fos to captain and taken on 42 new FOs.
So lets just see what is announced before making statements like that.
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I think there will be a LOT to look at before anyone really knows WIHIH, some of the smaller bases could even see some expansion as they become more viable (STN,BFS,BRS).
As a current TCX driver can I just say before the "mines bigger than yours" starts.
Lets stay positive and I'm sure if we all work together the pain will be minimised and we all just might end up working for an airline that we're all proud to be a part of.
So TCX ate Myt, Myt ate TCX, we're a merged company, synergies, holistic ongoing processes, negative ongoing profit situations blah,blah,blah.Who cares?
If the new company pays my mortgage, bring it on
Lets stay positive and I'm sure if we all work together the pain will be minimised and we all just might end up working for an airline that we're all proud to be a part of.
So TCX ate Myt, Myt ate TCX, we're a merged company, synergies, holistic ongoing processes, negative ongoing profit situations blah,blah,blah.Who cares?
If the new company pays my mortgage, bring it on
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And from a MYT driver, I would second that, after the merger we will all be working for the same company, if we all work together to get ther best out of it then we will all benefit
N.b. can I ask for more info on TCX, company pension donations, holiday concessions, when next pay deal should be - PM me with it if you want.
N.b. can I ask for more info on TCX, company pension donations, holiday concessions, when next pay deal should be - PM me with it if you want.
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Here here,
The guys in both comps will lose out in some respects and gain in others.
MYT will probably lose the fantastic scheduling agreement that has been a huge success.
TCX may see the brunt of the redundancies as they have recruited much more than MYT recently, hence many more junior pilots when the lists are combined.
On the plus side, MYT HR might be taken over by TCX HR. Common sense might prevail once and for all!
I pray there are no redundancies but if there are then let battle commence when the white, straight male pilots are laid off ahead of more junior female/black/lesbian/gay/ginger (delete as appropriate) pilots, all in the name of EU political correctness.
The guys in both comps will lose out in some respects and gain in others.
MYT will probably lose the fantastic scheduling agreement that has been a huge success.
TCX may see the brunt of the redundancies as they have recruited much more than MYT recently, hence many more junior pilots when the lists are combined.
On the plus side, MYT HR might be taken over by TCX HR. Common sense might prevail once and for all!
I pray there are no redundancies but if there are then let battle commence when the white, straight male pilots are laid off ahead of more junior female/black/lesbian/gay/ginger (delete as appropriate) pilots, all in the name of EU political correctness.
Last edited by Duff beer; 15th Feb 2007 at 13:10.
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I am sure both companies wont make the same mistake as Bacon and Flybe
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Having been here for the Flying Colours/Caledonian merger, I think that in the long run everyones T & C's were were generally improved. The biggest issue was seniority (as I'm sure will be the case here). Hopefully the first summer season will not be as painful as JMC, where the only bit of my roster that I wrote in the diary was my DO's.
There are great things to be taken from both companies, and I hope there will be no forced redundancy in the flight crew department ( I believe they will not be necessary).
Spare a thought for everyone in the shops, crewing etc etc.... who are about to get the boot.
There are great things to be taken from both companies, and I hope there will be no forced redundancy in the flight crew department ( I believe they will not be necessary).
Spare a thought for everyone in the shops, crewing etc etc.... who are about to get the boot.
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One of the best bits in MYT is the scheduling agreement. Roster stability is a given and we are rostered 10 days off every 4 weeks. Overtime is available and the rates are good. Hope both BALPA CC's are working together so that we all get the best of both the combined companies.
I for one am looking forward to working for the new company. Hope I can get back to flying the 757 again!
I for one am looking forward to working for the new company. Hope I can get back to flying the 757 again!
