Thomas Cook to collapse imminently?

thatdberight · Post by **thatdberight** » Mon Sep 23, 2019 1:48 pm

Marney&Mee wrote:simple really Herts Claret. As the pound has collapsed v euro, we decided to go to Cornwall this summer rather than fly abroad. We could afford Europe (but not twixes or £2k watches), but it didn't make financial sense. I'd imagine I'm not the only one. Brexit hammered the final nail in TC's coffin

..but helped the tourism industry in Cornwall.

Dyched · Post by **Dyched** » Mon Sep 23, 2019 1:49 pm

Inchy wrote:What was so wrong with TCs business model that it went belly up. As far as I can see TUI run the same model. Are they at risk?

They can’t have made money with the flights they did to the USA that’s for certain.

They didn’t do Business Class. Just economy and premium economy. Everything included eg, Baggage, food.

It was basically long haul Ryanair but actually flying to the places they advertise as going (as in the actual place not some small airport and hour away)with everything included.

Long haul airlines need the Business Class bookings to make money. It’s that simple.

FCBurnley · Post by **FCBurnley** » Mon Sep 23, 2019 1:49 pm

Devils_Advocate wrote:I really hope you didn't think about it if this is the nonsense you have concluded

Using advance payments to pay for other people’s rooms/ flights sounds like ponzi to me

ŽižkovClaret · Post by **ŽižkovClaret** » Mon Sep 23, 2019 1:51 pm

FCBurnley wrote:Using advance payments to pay for other people’s rooms/ flights sounds like ponzi to me

Not really ponzi but you could argue an element of "robbing peter to pay paul" as a business model.

arise_sir_charge · Post by **arise_sir_charge** » Mon Sep 23, 2019 1:51 pm

Lancasterclaret wrote:I say this with increasing levels of frustration

- silly to just blame Brexit

- also silly not to blame Brexit for hastening it

You post is also factually incorrect.

The reason we are still in the EU is because some Brexiteers want a different Brexit to others, and made sure the WA hasn't got through parliament.

If you are going to blame remainers, then make sure you blame brexiteers as well.

Oh, and "the blood of thomas Cook is on the hands of the remainers"

Thats Ringo language and completely unnecessary from a normally serious poster.

Maybe the language was dramatic but it was so, so as to make a specific point.

Thomas Cook was destined to fail with or without Brexit. As pointed out they had an un-serviceable debt based on a very poor business decision made some years before Brexit.

My view is and always has been, that the biggest problem with Brexit has been a reluctance to accept the result started by the man who set the ball rolling to start with.

Herts Clarets · Post by **Herts Clarets** » Mon Sep 23, 2019 1:53 pm

Imploding Turtle wrote:Since when have you cared about facts and figures?

Pretty regularly actually. Whilst many were fantasizing about our injury prone Belgian midfielder, you know the one who was described as the best player since McIlroy, I pointed out on a number of occasions his poor appearance record throughout his career, the number of games he played for us and given the publicized £40k per week wages, the cost per appearance (well over £100k by the way, before you take into account the amount of games he didn't last 90 minutes in). I also cast doubt over the repeated "injuries" that he supposedly suffered, something that I guess was not a million miles from the truth given he was turning out for Antwerp within a couple of weeks.

I don't think my request for figures was unreasonable, given the sweeping generalization of the statement. Less people are travelling because of Brexit. Surely there are numbers to back this up? All I have been able to find is that people are booking more longer haul holidays 2019 v 2018, so that is not "less people are travelling". From a sample group of my friends and work colleagues, a grand total of none have put off taking a foreign holiday due to Brexit uncertainty.

TC have failed for similar reasons that Blockbuster failed. Failure to recognize the advancement of technology and the availability of the product they sell, without the need for bricks and mortar retail outlets and the costs they carry.

Lancasterclaret · Post by **Lancasterclaret** » Mon Sep 23, 2019 1:54 pm

arise_sir_charge wrote:Maybe the language was dramatic but it was so, so as to make a specific point.

Thomas Cook was destined to fail with or without Brexit. As pointed out they had an un-serviceable debt based on a very poor business decision made some years before Brexit.

My view is and always has been, that the biggest problem with Brexit has been a reluctance to accept the result started by the man who set the ball rolling to start with.

Which is what I said on a previous post!

And the biggest problem with Brexit is that the Brexit that has been promised isn't the Brexit we are getting, so people are ****** off.

Lancasterclaret · Post by **Lancasterclaret** » Mon Sep 23, 2019 1:57 pm

Herts Clarets wrote:Pretty regularly actually. Whilst many were fantasizing about our injury prone Belgian midfielder, you know the one who was described as the best player since McIlroy, I pointed out on a number of occasions his poor appearance record throughout his career, the number of games he played for us and given the publicized £40k per week wages, the cost per appearance (well over £100k by the way, before you take into account the amount of games he didn't last 90 minutes in). I also cast doubt over the repeated "injuries" that he supposedly suffered, something that I guess was not a million miles from the truth given he was turning out for Antwerp within a couple of weeks.

I don't think my request for figures was unreasonable, given the sweeping generalization of the statement. Less people are travelling because of Brexit. Surely there are numbers to back this up? All I have been able to find is that people are booking more longer haul holidays 2019 v 2018, so that is not "less people are travelling". From a sample group of my friends and work colleagues, a grand total of none have put off taking a foreign holiday due to Brexit uncertainty.

TC have failed for similar reasons that Blockbuster failed. Failure to recognize the advancement of technology and the availability of the product they sell, without the need for bricks and mortar retail outlets and the costs they carry.

*Sigh*

Do any of you blue passportists actually read my first post?

And you are still wrong about Defour.

Marney&Mee · Post by **Marney&Mee** » Mon Sep 23, 2019 2:05 pm

thatdberight wrote:..but helped the tourism industry in Cornwall.

it did indeed. Possibly the only positive to come out of Brexit.

Anyway, there's another thread for that debacle !

FCBurnley · Post by **FCBurnley** » Mon Sep 23, 2019 2:11 pm

Prior to my daughter flying to Vegas we though it prudent to call the hotel she had booked and paid for ( thru TC) to check that they had been paid. They said that they would get paid by a third party after my daughters stay. Dont know who the third party is but it aint Thomas Cook. So question is has TC paid third party ? If not what happens then ? Hotel said they were very unlikely to ask my daughter for payment or terminate her stay.

FCBurnley · Post by **FCBurnley** » Mon Sep 23, 2019 2:13 pm

ZizkovClaret wrote:Not really ponzi but you could argue an element of "robbing peter to pay paul" as a business model.

Yes and one that eventually can only end in tears

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 2:18 pm

ZizkovClaret wrote:For a start the weak pound has made going abroad more expensive. If, as many might say you can, that is seen as linked to Brexit uncertainty, then that is just one clear reason.

Wasn't weak GBP 3 years ago? Isn't that enough time to adjust? Brochures printed, prices set late 2018 for this summer season?

What about their German and Scandinavian business? How are euro customers a
Impacted by "weak pound?" Doesn't that mean earnings in euros makes more pounds for TC?

Devils_Advocate · Post by **Devils_Advocate** » Mon Sep 23, 2019 2:18 pm

FCBurnley wrote:Using advance payments to pay for other people’s rooms/ flights sounds like ponzi to me

Well its not but if you're interested you should maybe do some research around Ponzi schemes its quite an interesting subject.

The "Ponzi" schemes of today are the MLM's you see all over social media such as Herbalife and Airborne however they get round it by having a saleable product even if the real way to make money is to just get new people signed up so you move up the pyramid and profit off their investment

ŽižkovClaret · Post by **ŽižkovClaret** » Mon Sep 23, 2019 2:20 pm

Paul Waine wrote:Wasn't weak GBP 3 years ago? Isn't that enough time to adjust? Brochures printed, prices set late 2018 for this summer season?

What about their German and Scandinavian business? How are euro customers a
Impacted by "weak pound?" Doesn't that mean earnings in euros makes more pounds for TC?

A Czech subsidiary have said they are certainly viable so maybe the major issue was the UK market?

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 2:21 pm

Lancasterclaret wrote:Because less people are travelling because of Brexit uncertainty.

How many fewer Brits booking with TC compared with "before Brexit?"

How many fewer Germans and Swedens etc booking with TC than "before Brexit?"

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 2:23 pm

ZizkovClaret wrote:A Czech subsidiary have said they are certainly viable so maybe the major issue was the UK market?

There we go then, nothing to do with weak pound and brexit?

FCBurnley · Post by **FCBurnley** » Mon Sep 23, 2019 2:25 pm

Devils_Advocate wrote:Well its not but if you're interested you should maybe do some research around Ponzi schemes its quite an interesting subject.

The "Ponzi" schemes of today are the MLM's you see all over social media such as Herbalife and Airborne however they get round it by having a saleable product even if the real way to make money is to just get new people signed up so you move up the pyramid and profit off there investment

Many years ago they were all called Pyramid schemes. TC is probably not a Ponzi scheme in the true sense of the word but there `business model` could only end the same way as any Ponzi scheme. Once the money stops flowing in they are done. If you read my earlier post you will see that although they collect full payment months ahead of the travel date, they do not pay the hotels until after the stay. Or I guess now not at all.

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 2:25 pm

ZizkovClaret wrote:Not really ponzi but you could argue an element of "robbing peter to pay paul" as a business model.

I've always given this business model my full support!

ŽižkovClaret · Post by **ŽižkovClaret** » Mon Sep 23, 2019 2:29 pm

Paul Waine wrote:There we go then, nothing to do with weak pound and brexit?

Read that again Paul. The european market was ok, within reason. Its perfectly possible the major issue was their huge overheads in the high street and the number of similar rivals like jet2 who had far lower overheads

Devils_Advocate · Post by **Devils_Advocate** » Mon Sep 23, 2019 2:30 pm

FCBurnley wrote:Many years ago they were all called Pyramid schemes. TC is probably not a Ponzi scheme in the true sense of the word but there `business model` could only end the same way as any Ponzi scheme. Once the money stops flowing in they are done. If you read my earlier post you will see that although they collect full payment months ahead of the travel date, they do not pay the hotels until after the stay. Or I guess now not at all.

Again you are not getting what a Ponzi or Pyramid scheme is about at all. TC are a booking agent who take commission for brokering the deal. The part you are focusing on is more to do with there business model around cashflow but this is nothing like how a pyramid scheme works.

Here's a definition of what a pyramid scheme is

a form of investment (illegal in the UK and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.

And a description of it

A pyramid scheme is a way of making money that cannot continue very long. It involves promising people payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part. It does not supply any real investment or sale of products or services to the public.

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 2:34 pm

Imploding Turtle wrote:Imagine if socialism wasn't a thing. I wonder what all those people would have to do to get back home.

Probably no holidays in the first place, IT. Party members only was the model followed by USSR.

For the few, not the many, was their modus operandi.

FCBurnley · Post by **FCBurnley** » Mon Sep 23, 2019 2:38 pm

Devils_Advocate wrote:Again you are not getting what a Ponzi or Pyramid scheme is about at all. TC are a booking agent who take commission for brokering the deal. The part you are focusing on is more to do with there business model around cashflow but this is nothing like how a pyramid scheme works.

Here's a definition of what a pyramid scheme is

a form of investment (illegal in the UK and elsewhere) in which each paying participant recruits two further participants, with returns being given to early participants using money contributed by later ones.

And a description of it

A pyramid scheme is a way of making money that cannot continue very long. It involves promising people payment, services or ideals, primarily for enrolling other people into the scheme or training them to take part. It does not supply any real investment or sale of products or services to the public.

Fair enough but whatever you want to call it there could only ever be one end result. A bit like Burnley 2 Norwich 0

Devils_Advocate · Post by **Devils_Advocate** » Mon Sep 23, 2019 2:44 pm

FCBurnley wrote:Fair enough but whatever you want to call it there could only ever be one end result. A bit like Burnley 2 Norwich 0

I'll give you that last sentence

kentonclaret · Post by **kentonclaret** » Mon Sep 23, 2019 2:45 pm

Estimated cost to the taxpayer of repatriation £600m (according to The Times front-page today).

Still, a drop in the ocean when one considers the billions of £££££'s of taxpayers money flushed down the toilet in pursuit of the failed project Brexit.

thatdberight · Post by **thatdberight** » Mon Sep 23, 2019 2:48 pm

FCBurnley wrote:Yes and one that eventually can only end in tears

So, every business that has any sort of credit will end in tears? Thanks for your insight.

thatdberight · Post by **thatdberight** » Mon Sep 23, 2019 2:52 pm

kentonclaret wrote:Estimated cost to the taxpayer of repatriation £600m (according to The Times front-page today).

Still, a drop in the ocean when one considers the billions of £££££'s of taxpayers money flushed down the toilet in pursuit of the failed project Brexit.

I have tried on a number of occasions to find a source for the £600m figure. I can't. It's never attributed. I think it's made up. It's often stuck at the end of a sentence to imply it's from the CAA or someone similar but when you read carefully, it's not.

Your need to shoehorn the other topic in says more about you than anything else.

claret2018 · Post by **claret2018** » Mon Sep 23, 2019 3:09 pm

Some people on here may be shocked to find out that if you deposit a £20 note in the bank, you don't get that same £20 note back when you withdraw it.

Quickenthetempo · Post by **Quickenthetempo** » Mon Sep 23, 2019 3:33 pm

Maybe best to check the level of debt TC had before the Brexit vote?
Before blaming it.

AlargeClaret · Post by **AlargeClaret** » Mon Sep 23, 2019 3:38 pm

thatdberight wrote:So, every business that has any sort of credit will end in tears? Thanks for your insight.

Well if every business leveraged huge debts based off high st travel agents, ultra slim margins , and a very dated business model I do believe there would be tears

evensteadiereddie · Post by **evensteadiereddie** » Mon Sep 23, 2019 4:46 pm

The TC model, High Street travel shops and all, are serving an ever-decreasing market. The fact is you don't need to be talked through a brochure or your potential destinations with one of their staff, you go online.
Me and a couple of buddies are heading off to Spain in April/May for the annual lads' cycling "Tour".
I had flights, bike hire, airbnb accommodation and car hire booked and paid for within half an hour and that included a bit of dithering over where to stay in Denia.
TC didn't stand a chance.

Granny WeatherWax · Post by **Granny WeatherWax** » Mon Sep 23, 2019 4:49 pm

It’s feck all do to with Brexit and all about Thomas cooks inability / unwillingness/ failure to restructure their business to meet changing customer environment.

More British people went abroad in the last 12 months than ever before.

Mismanagement over politics.

FCBurnley · Post by **FCBurnley** » Mon Sep 23, 2019 4:52 pm

thatdberight wrote:So, every business that has any sort of credit will end in tears? Thanks for your insight.

I would be interested to know what products you buy and pay for 3 or 4 months in advance ? I dont need a long list. 4 or 5 would be adequate.

aggi · Post by **aggi** » Mon Sep 23, 2019 4:52 pm

Paul Waine wrote:Hi Lancs, can you explain why you think "Brexit finished them off"?

Flights/holidays to Tunisia, Turkey, Thailand, Mexico California, Arizona (vegas) and Florida. Ok, yes, some to EU destinations, also.

Brexit was, until it was delayed, 29-March. Holiday businesses plan a year ahead.

Then, we've got German and Scaninavian parts of business; NON-US 500,000 customers v 150,000 UK customers.

So, how exactly did Brexit "realities" finish them off?

Back six months or so TC had a profit warning and the announcement to the markets was that it was in part suffering because Brexit had caused a large number of UK holiday makers to delay their plans. I imagine the fact that for their UK operations they get their revenue in sterling but have a lot of expenditure in dollars and euros also doesn't help.

Trying to argue that Brexit wasn't a factor seems to be a stretch.

aggi · Post by **aggi** » Mon Sep 23, 2019 4:57 pm

FCBurnley wrote:I would be interested to know what products you buy and pay for 3 or 4 months in advance ? I dont need a long list. 4 or 5 would be adequate.

So when are all the football clubs with their season tickets going to go bust?

Bfc · Post by **Bfc** » Mon Sep 23, 2019 4:57 pm

I only have 1 FCBurnley, my season ticket.

Darnhill Claret · Post by **Darnhill Claret** » Mon Sep 23, 2019 4:59 pm

Maybe the point some are trying to make with the Brexit link, is that TC might have carried on trading a little longer with a stronger £. Maybe the unserviceable debt was beginning to accelerate.

thatdberight · Post by **thatdberight** » Mon Sep 23, 2019 5:07 pm

AlargeClaret wrote:Well if every business leveraged huge debts based off high st travel agents, ultra slim margins , and a very dated business model I do believe there would be tears

Yes. What you said is right. That's not what I responded to originally.

thatdberight · Post by **thatdberight** » Mon Sep 23, 2019 5:14 pm

FCBurnley wrote:I would be interested to know what products you buy and pay for 3 or 4 months in advance ? I dont need a long list. 4 or 5 would be adequate.

Flights
Hotel rooms
Train tickets
The last 7-8 months of my TV licence
The last 7-8 months of my car insurance
Ditto travel insurance
Concert tickets
The last 7-8 months of my annual car maintenance plan
The whole of my season ticket

It's not that rare a business model to charge in advance. And it's certainly not in their industry.

Lancasterclaret · Post by **Lancasterclaret** » Mon Sep 23, 2019 5:14 pm

Granny WeatherWax wrote:It’s feck all do to with Brexit and all about Thomas cooks inability / unwillingness/ failure to restructure their business to meet changing customer environment.

More British people went abroad in the last 12 months than ever before.

Mismanagement over politics.

Anybody else want to state the Brexit backers position?

As always, everybody else who is an expert is saying its a factor, while Brexiteers are declaring that its nothing to do with it.

Give yourselves a break lads, and maybe get out of the echo chamber occasionally eh?

And again, read my first post on the subject before you angrily defend Brexit to the death against someone who is just laughing at you all getting carried away because someone said "its a factor"

Alanstevensonsgloves · Post by **Alanstevensonsgloves** » Mon Sep 23, 2019 5:58 pm

One thing scuppered TC - BAD MANAGEMENT. TUI has had to weather exactly the same trading conditions, as has Jet2. This is from TUI's March 2019 Half yearly trading statement...
"As expected, the decline in Markets & Airlines' H1 result reflects the knock-on impact of the summer 2018 heatwave, overcapacities in Spain arising from the shift in demand to Eastern Mediterranean, continued Brexit uncertainty, as well as particularly strong comparatives for Nordics in H1 last year. In addition, the result includes the initial impact from the 737 MAX grounding, which commenced in mid-March, and the later timing of Easter this year."

You can see can the reasons for the 'underlying pressures', however out of the three travel companies, two had the competency to ride it through, one didn't. I don't just blame the current board for this, the mismanagement of TC stretches back a long time to the days of a guy called Manny Fontenla-Novoa. This article gives a good background: https://www.travelmole.com/news_feature ... id=2039355" onclick="window.open(this.href);return false;

For the record also, TCs overseas companies ie Thomas Cook in Germany, Nordic region etc are all still trading as they are 'separate' companies. So they have had zero impact into the collapse of the UK TC. They will have a bumpy ride ahead though through the collapse of some shared services.

The winners? Definitely TUI and Jet2, although for a foreseeable period, confidence in the 'package holiday' will be shaken.

Alanstevensonsgloves · Post by **Alanstevensonsgloves** » Mon Sep 23, 2019 6:02 pm

A little 'aside', the collapse of TC also signals the end of the 'Airtours' brand, one which I was very proud to serve for 3 years in the late 90s.

tarkys_ears · Post by **tarkys_ears** » Mon Sep 23, 2019 6:10 pm

Alanstevensonsgloves wrote:A little 'aside', the collapse of TC also signals the end of the 'Airtours' brand, one which I was very proud to serve for 3 years in the late 90s.

Thank you for your service!

PWBFC · Post by **PWBFC** » Mon Sep 23, 2019 6:23 pm

FCBurnley wrote:Prior to my daughter flying to Vegas we though it prudent to call the hotel she had booked and paid for ( thru TC) to check that they had been paid. They said that they would get paid by a third party after my daughters stay. Dont know who the third party is but it aint Thomas Cook. So question is has TC paid third party ? If not what happens then ? Hotel said they were very unlikely to ask my daughter for payment or terminate her stay.

Post travel payment is extremely common in the travel industry. Reputable and responsible companies hold their clients funds in a separate trust account so in the event of a company failure, the clients funds are protected.

Sadly, that’s not a requirement or the norm.

dpinsussex · Post by **dpinsussex** » Mon Sep 23, 2019 7:27 pm

Alanstevensonsgloves wrote:A little 'aside', the collapse of TC also signals the end of the 'Airtours' brand, one which I was very proud to serve for 3 years in the late 90s.

Me too. Helmshore, overseas and retail in London. Close on 10 years service for me.
That said I was saying back then, that the high street was failing and achieving the targets was getting harder bc of the online boom.
January bookings were the key to the sector, we worked every hour we could for our £4 a passenger incentive.
Sad times

Quickenthetempo · Post by **Quickenthetempo** » Mon Sep 23, 2019 7:59 pm

Reports that quite a few hotels will go bump in Spain over this.

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 9:22 pm

claret2018 wrote:Some people on here may be shocked to find out that if you deposit a £20 note in the bank, you don't get that same £20 note back when you withdraw it.

what's a £20 note?

EDIT: and what's a bank?

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 9:28 pm

kentonclaret wrote:Estimated cost to the taxpayer of repatriation £600m (according to The Times front-page today).

Still, a drop in the ocean when one considers the billions of £££££'s of taxpayers money flushed down the toilet in pursuit of the failed project Brexit.

Agree. Similar figures were quoted yesterday. Then there were some of us posted (Times) that £600 million for 150,000 passengers was an average of £4,000 each.

The Times is now quoting "up to £100 million" and most of this paid by Atol.

"However, the transport department said that “given the extent the disruption” the repatriation would cover all Thomas Cook customers. It is expected to cost the taxpayer up to £100 million. The majority of the money for the scheme will come from the Atol scheme with the government making up the shortfall."

Can I claim to have saved everyone over £500 million and just with a simple bit of maths?

Hey, where's my commission?

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 10:02 pm

Quickenthetempo wrote:Reports that quite a few hotels will go bump in Spain over this.

TC owned a lot of hotels - and in there Q1 2018/19 trading statement on 7-Feb this year their Chief Exec commented:

"In addition, we are set to open 20 new own brand hotels this summer, including three Casa Cooks and eight Cook’s Clubs, and have announced two new hotel projects with Fosun in China.“

For those who are "experienced" in reading financial statements you can access Thomas Cook Group Plc financial reports at this link:

https://www.thomascookgroup.com/investo ... sentations" onclick="window.open(this.href);return false;.

CEO comments on Q1 2018/19 results, (1-Oct-2018 to 31-Dec-2018):

“As expected, the knock-on effect from the prolonged summer heatwave and high prices in the Canaries have impacted customer demand for winter sun. Where Summer 2018 bookings started very strongly, bookings for Summer 2019 reflect some consumer uncertainty, particularly in the UK, and our decision to reduce capacity which will both mitigate risk in our tour operator business and help our airline to consolidate the strong growth achieved last year.

“We’ve made further good progress in transforming our business with a rigorous focus on managing our cost base while innovating to deliver high-quality holidays for our customers. Our strategic alliance with Expedia is now live in all our key markets. In addition, we are set to open 20 new own brand hotels this summer, including three Casa Cooks and eight Cook’s Clubs, and have announced two new hotel projects with Fosun in China.

“At the same time, we recognise that we need greater financial flexibility and increased resources to accelerate the execution of our strategy of differentiation: to invest in strengthening our own-brand hotel portfolio; further digitising our sales channels; and driving greater efficiencies across the business. As a result, we are today announcing a strategic review of our Group Airline. We are at an early stage in this review process which will consider all options to enhance value to shareholders and intensify our strategic focus. We will provide an update on this process in due course.”

Nothing, absolutely nothing about the UK leaving the EU in the financial report.

Hope no one minds me underlining this observation that I've made after reading this report.

Summer 2019 comments - in TC report 7-Feb-2019:

Our Summer 2019 programme is 30% sold, slightly ahead of last year. Group Tour Operator bookings are consistent with the capacity reductions we have made across our markets to closely manage our risk capacity throughout the year. As a result, tour operator bookings are down 12%, helping to support pricing, which is up in all key segments, and 4% higher overall.

Group Airline bookings are below last year, as we have selectively reduced capacity in short and medium haul destinations by taking in less wet-lease capacity. This is partially offset by good growth in demand to long-haul destinations. Average selling prices are up 6%, with higher yields in both short and medium-haul and long-haul.

Outlook

We are addressing some of the challenges we faced in Summer 2018 by reducing our committed airline capacity for 2019 and increasing the focus on high quality, higher-margin hotels and destinations. In addition, we continue rigorously to drive down costs to give us greater operational flexibility, while remaining fully focused on our strategy, and managing our financial and commercial commitments.

We are making no changes to the full-year expectations set out in November 2018, reflecting the early stage in the year and limited visibility due to wider market uncertainty, particularly in the UK.

Financial position

Net debt at 31 December 2018 was £1,588 million. The Group has kept a healthy level of liquidity headroom over the important winter cash low period, maintaining a minimum buffer within our targeted range of £150 million to £200 million. In addition, our bank covenant tests as at 31 December 2018 were met.

I've underlined the "minimum cash buffer" target of £150 million to £200 million - which was maintained up to Dec-2018. It's not clear from the reporting I've seen, whether the same buffer was being specified for the financial re-structuring over the last couple of weeks, or whether an additional £200 million was required above this level.

Paul Waine · Post by **Paul Waine** » Mon Sep 23, 2019 10:06 pm

Alanstevensonsgloves wrote:One thing scuppered TC - BAD MANAGEMENT. TUI has had to weather exactly the same trading conditions, as has Jet2. This is from TUI's March 2019 Half yearly trading statement...
"As expected, the decline in Markets & Airlines' H1 result reflects the knock-on impact of the summer 2018 heatwave, overcapacities in Spain arising from the shift in demand to Eastern Mediterranean, continued Brexit uncertainty, as well as particularly strong comparatives for Nordics in H1 last year. In addition, the result includes the initial impact from the 737 MAX grounding, which commenced in mid-March, and the later timing of Easter this year."

You can see can the reasons for the 'underlying pressures', however out of the three travel companies, two had the competency to ride it through, one didn't. I don't just blame the current board for this, the mismanagement of TC stretches back a long time to the days of a guy called Manny Fontenla-Novoa. This article gives a good background: https://www.travelmole.com/news_feature ... id=2039355" onclick="window.open(this.href);return false;

For the record also, TCs overseas companies ie Thomas Cook in Germany, Nordic region etc are all still trading as they are 'separate' companies. So they have had zero impact into the collapse of the UK TC. They will have a bumpy ride ahead though through the collapse of some shared services.

The winners? Definitely TUI and Jet2, although for a foreseeable period, confidence in the 'package holiday' will be shaken.

Some great information, "Mr Stevenson."

However, are you sure that German and Nordic region are still trading as separate companies? They are all included in Thomas Cook Group Plc - according to their financial reports - see link in my post above.

Bordeauxclaret · Post by **Bordeauxclaret** » Mon Sep 23, 2019 10:07 pm

Owned 9 according to ITV news.