Category Archives: Thomas Cook Scandinavia

Thomas Cook reportedly receives inquiries for its divisions

Leased from Avion Express

Thomas Cook has received inquiries for its business and also parts of its business according to the BBC. The company put its airline division up for sale in February.

Read the full report.

Thomas Cook Group plc is a British global travel company. It was formed on June 19, 2007 by the merger of Thomas Cook AG.

The airline group includes:

Thomas Cook Airlines (UK)

Thomas Cook Airlines Balearics

Thomas Cook Airlines Scandinavia

Condor Flugdienst

Thomas Cook Group operates across 16 source markets, employs 21,000 people and has generated a total of £9.6 billion in group sales in the year ended 30 September 2018. Thomas Cook has around 200 own-brand hotels and resorts across seven brands – SENTIDO, Sunprime, Sunwing, SunConnect, smartline, Casa Cook and Cook’s Club.

For the 2019 summer schedule the group is making these changes:

  • Group Airline with a total of four additional short- and medium-haul aircraft compared to summer 2018
  • Three further Airbus A321s in service for Condor as of early summer, one additional A321 to take-off for Thomas Cook Airlines UK
  • 105 aircraft in UK, Scandinavia, Spain and Germany
The Thomas Cook Group Airline is taking delivery of two additional Airbus A321 aircraft, which will be added to the Condor fleet for the 2019 summer flight schedule.
The jets will be in service for Thomas Cook Airlines UK from winter 2019/20 afterwards.
The Group Airline recently announced to include two further Airbus A321 for summer 2019, and will have a total of 105 aircraft then. Its short- and medium-haul fleet has been expanded by four additional own aircraft in total compared to the previous year.
Two Airbus A321s fly for Condor and are stationed in Leipzig and Hanover in summer 2019. In Leipzig, Condor is significantly increasing capacity with around 100,000 additional seats to the Mediterranean, the Canary Islands, Turkey and Egypt. Another A321 is flying in Germany as well, the fourth airplane completes the A321 fleet of Thomas Cook Airlines UK.
Top Copyright Photo: Thomas Cook Airlines (UK) (Avion Express) Airbus A321-211 LY-VEC (msn 3267) TFS (Wingnut). Image: 946248.
Thomas Cook (UK) aircraft slide show:
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Thomas Cook Group will consider selling its airline division

Thomas Cook Airlines (UK) (SmartLynx Airlines Latvia) Airbus A320-214 LY-LCO (msn 1873) PMI (Ton Jochems). Image: 945605.

The Thomas Cook Group has stated it is conducting a review of its airline division. The group wants to concentrate more on its hotels division.

The group also stated it would consider all options including a possible sale of the individual airlines.

The Thomas Cook Group airline division consist of three sun and beach focused leisure airlines: Thomas Cook Airlines UK, Thomas Cook Airlines Scandinavia, the German airline Condor Flugdienst GmbH and Thomas Cook Airlines Balearics.

The group issued this full financial report:

Fiscal first quarter trading statement for the three months ended December 31, 2018:

2018/19 started in line with expectations; strategic review of airline announced

HIGHLIGHTS1

  • First quarter revenue up 1% to £1,656 million2
  • Q1 underlying operating loss increased by £14 million to £60 million against a strong prior-year period – loss from operations on a reported basis increased £7 million reflecting lower separately disclosed items
  • Strategic review of Group Airline to increase financial flexibility and accelerate execution of our core strategy

1. Comments are based on like-for-like comparisons

2. Includes adjustment for IFRS 15 accounting change for Group Airline and residual amounts relating to the transfer of the Thomas Cook Airlines Belgium to Brussels Airlines and as such is no longer part of the Group

Peter Fankhauser, Chief Executive of Thomas Cook commented:

“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.”

FIRST QUARTER PERFORMANCE

Group revenue was broadly unchanged in the first quarter, rising by 1% on a like-for-like basis to £1,656 million, led by strong customer demand for Turkey and North African destinations, offsetting weaker demand for Spain.

Gross margins were lower, reflecting a continuation of the highly competitive market conditions in the UK at the end of the summer season, and weaker demand for winter holidays in the Nordics.

As a result, the Group’s seasonal underlying loss from operations increased by £14 million on a like-for-like basis to £60 million. Currency translation movements during the quarter led to an impact of £4 million. On a reported basis, our loss from operations increased by £7 million, reflecting an improvement in separately disclosed items. The seasonal loss was led by the Group Tour Operator where a weaker performance in the UK and Northern Europe was partially offset by a good performance in Continental Europe. Our Group Airline continued to perform well, delivering a seasonal underlying loss in line with a strong comparative period last year.

Financial position

Net debt at December 31, 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.

CURRENT TRADING AND OUTLOOK

Winter 2018/19 

Trading for the Winter 2018/19 season is largely unchanged from the last update. Total bookings are up 8%, supported by higher volumes in the Group Airline as a result of the full season impact of extra aircraft acquired last spring. We continue to see strong demand for Turkey, Egypt and Tunisia as customers seek alternatives to high hotel prices in the Canary Islands. However, average selling prices are 10% lower overall, reflecting a higher mix of short and medium-haul airline volumes.

Group Tour Operator bookings are down 2%, with pricing 3% lower. Bookings from the Nordics and Continental Europe are lower than last year, in line with reductions in capacity. In the UK, charter risk bookings are in line with last year.

For the Group Airline, overall bookings are 8% ahead, in line with capacity increases. Bookings to short and medium-haul destinations are up by 10%, largely as a result of a growth in demand for Egypt. Long-haul bookings are up 3% with good demand for USA and Caribbean. Overall airline pricing is down 3% due to the mix effect of a shift towards short and medium-haul flying.

Summer 2019

Our Summer 2019 program 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.

INTENSIFYING STRATEGIC FOCUS

Thomas Cook Group has undergone significant transformation over the last five years as we have streamlined our operations and focused on a clear strategy in both our Airline and Tour Operator businesses.

However, it is clear 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.

Our strategy for the airline has been to profitably grow as a leading European leisure airline with a reliable, customer-focused service. This has involved a continuous review of our cost structure in order to stay competitive in a highly fragmented market. We currently operate a fleet of 103 aircraft, of which a quarter serve long-haul destinations. Our Group Airline delivered strong growth in 2018, despite facing industry-wide disruption.

We made good progress in strengthening our seat-only offer, and growing services to third-party tour operators. We carried over 20 million passengers and generated £3.5 billion in revenue, with underlying operating profits growing 37% year-on-year to £129 million.

Top Copyright Photo: Thomas Cook Airlines (UK) (SmartLynx Airlines Latvia) Airbus A320-214 LY-LCO (msn 1873) PMI (Ton Jochems). Image: 945605.

Thomas Cook (UK) aircraft slide show:

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Is the end coming for Thomas Cook in the airline business?

Thomas Cook, the world’s oldest travel group, is considering selling its airline arm, Thomas Cook Group, as it continues to recover from its near-collapse in 2011.

According to the Independent, the company, which can trace its roots back to 1841 when Thomas Cook arranged for 500 people to travel between Leicester and Loughborough for a shilling, has reportedly sounded out potential buyers for the airline group. These are believed to include rival carriers and private equity investors, although no talks are currently taking place.

The holiday giant found itself under a mountain of debt in 2011 but has since axed jobs and shut high-street shops.

“We are always open for opportunities, which might include partnering with other partners/airlines,” it said in a statement.

However, it added: “We are very pleased with the development of our airlines. We have refurbished the cabins of our long-haul fleet and added long-haul aircraft to our Condor fleet in Germany and the UK. We see our airlines as an important part of our business.”

Thomas Cook AG currently has 88 active aircraft in it’s fleet, spanning 4 airlines: Thomas Cook Airlines (UK) (29) (Manchester), Thomas Cook Airlines Belgium (3) (Brussels), Thomas Cook Airlines Scandinavia (14) (Copenhagen-Oslo-Stockholm) and Condor Flugdienst (42) (Frankfurt), making it the 11th largest airline operator in Europe, and has ordered 25 new Airbus A321s (above) to replace older aircraft. However such moves could affect the order as well as result in airlines being shutting down or being rebranded.

The airline has refuted the conjecture in the UK media according to ch-aviation.

Could this be the end for the Thomas Cook we’ve come to know for so many years? Watch this space.

Read the full report: CLICK HERE

Assistant Editor Oliver Wilcock reporting from Manchester.

Copyright Photo: Ton Jochems/AirlinersGallery.com. Thomas Cook Airlines (UK) Airbus A321-211 WL G-TCDD (msn 6038) taxies to the gate at Palma de Mallorca.

Thomas Cook Airlines (UK) aircraft slide show: AG Airline Slide Show

AG Slide Shows

 

 

Thomas Cook’s stock tumbles as it goes to the banks for financial help

Thomas Cook Group (London) has lost nearly three-quarters of its market value on the London Stock Exchange after the ailing firm admitted it had gone back to the banks for more financial help according to this report by the Press Association.

Thomas Cook Group plc is a travel company created on June 19, 2007 by the merger of Thomas Cook AG and MyTravel Group plc. At flotation on the London Stock Exchange 52% of the shares in the new company were held by the German mail order and department store corporation Arcandor (former owners of Thomas Cook AG) and 48% owned by the shareholders of MyTravel. On June 9, 2009 Arcandor filed for bankruptcy. The merger, which was backed by 99.9% of shareholders, took place through the formation of “NewCo” which effectively purchased MyTravel and Thomas Cook and was then listed on the London Stock Exchange under the name of Thomas Cook Group plc.

The Thomas Cook Group plc is the parent organization of Condor Flugdienst, Thomas Cook Airlines Scandinavia, Thomas Cook Airlines (Belgium), Thomas Cook Airlines (Canada) and Thomas Cook Airlines (UK).

Read the full story: CLICK HERE

Thomas Cook (UK) Slide Show: CLICK HERE

Copyright Photo: Antony J. Best.

Garuda Indonesia leases A330-343X OY-VKI

Copyright Photo: Nik French.  OY-VKI prepares for departure at the Manchester base.

Copyright Photo: Nik French. OY-VKI prepares for departure at the Manchester base.

Garuda Indonesia Airways (Jakarta) has leased Airbus A330-343X (msn 357) from Thomas Cook Scandinavia in Thomas Cook colors and Garuda bird logos.

News link:

www.thejakartapost.com/news/2009/10/23/garuda-deploys-15-big-planes-transport-pilgrims.html