Thomas Cook in trouble?? by JohnDotCom

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I've known for some time now, as will have many working in the Aviation/Hospitality Industry, but the company Thomas Cook is getting itself in deep shit, and has been trying to re finance its debts with banks etc and cancel all new plane orders, and now looking at off-loading more staff.

I only mention this on here as I'm sure many are now planning next years holidays, or booked on Winter breaks, so if you are using one of their flights, or Holiday package either direct with them or through their Travel agencies.
Just be careful and make sure you are protected out there, and may be easier to not book with them to see if they can sort themselves out, at the same time people not using them won't help, but, they are a Business and your money is hard earned for your break.
Their shares have fallen another 51% now, so if you have them I'm sorry to bring news of this.
Official Public announcements have now been made, so not breaking any restrictive Company rules.

The Information below may assist or take away worries. (Not all Mine)

The travel giant has seen its shares plummet amid concerns about its financial situation. Here's what you need to know if you've already booked or are thinking of booking with Thomas Cook.
If you've booked or are planning to book a flight with Thomas Cook, you might want to make sure you've got comprehensive travel insurance.

That's the warning from industry experts after shares in the company plunged by more than 65% on Tuesday so far. The nosedive in the company's value happened after Thomas Cook said it was going back to the banks to see if it could borrow more money.

The company has been hit hard by the political turmoil in Egypt and Tunisia and the flooding in Thailand, leading to a huge reduction in winter holiday bookings.

Package holidays safe

If you've booked a package holiday, your booking is covered by the Air Travel Organisers' Licensing (Atol) scheme. That means that even if Thomas Cook was to go under, your holiday is protected and you would be flown home at no extra cost.

If you had booked a holiday for the future, it would be refunded in full.

Take cover if you're flying

However, if you've just booked flights with Thomas Cook, you're advised to take out comprehensive travel insurance, including supplier failure. That's because flights are not covered by the Atol scheme.

If the flights cost more than £100, you should also pay by credit card, as this covers you for a refund under the Consumer Credit Act, but if you pay through PayPal using a Credit card you cannot claim through Credit card company using this scheme to get your money back.

If you've paid by debit card and the worst happens, you may be able to claim the money back via what's known as the 'chargeback' system. But this depends on whether your debit card provider is signed up to the scheme.

So the message is take cover and pay by credit card, just in case. And that goes for any airline that looks like it might be heading for financial turbulence.

No need to panic now?

Despite the massive fall in the company's value, Thomas Cook's CEO Sam Weihagen said: "We have all the protection in place as any other travel company and [customers] should not worry.

(haven't we heard that many times this last few years? :gmc:

Thomas Cook's £900m Debt Woes Deepen. Sky News

Europe second biggest tour operator Thomas Cook has announced it is in negotiations with banks about its growing £900m debt.

As a result, it plans to delay the announcement of its annual results due on Thursday.

It comes just a month after the company asked the bank for £100m credit to see it through the quiet winter trading period.

The Thomas Cook share price fell 67% at lunch time following the news, adding to the downward spiral of its shares, which have slumped 80% during the past year.

The holiday group had already issued three profits warnings this year, resulting in its chief executive Manny Fontenla-Novoa quitting in August.

It had also merged its high street travel business with the Co-operative Travel - and there were reports at the weekend that the company plans to shut 200 shops, putting 1,000 jobs at risk.

Adding to the dismal year, Thomas Cook is expected to report a 31% slide in underlying profits to £191.1m.

It comes as Sky's City editor Mark Kleinman learned the crisis-hit tour operator has approached some of Britain's biggest airlines to sell its 6% stake, worth about £60m, in National Air Traffic Services (NATS).

In other moves to turnaround the company's economic gloom, it has already ditched six of its 41 aircraft over the coming winter because of weak demand.

A Thomas Cook spokesman said there was "nothing to worry about" when describing the latest bank negotiations.

Sam Weihagen, Thomas Cook acting chief executive, insisted the company was a "robust business that has a great future".

He said: "Thomas Cook is a very strong company. We're operating business as usual. Flights are leaving on schedule, shops are open and we're taking bookings.

"I see no reason why we shouldn't continue to be a very strong company."

The firm blames the euro crisis and this year's unrest in North Africa - Egypt and Tunisia are two of the operator's most popular destinations - as factors for the financial trouble.

Sky News business correspondent Joel Hills said: "It doesn't look good. In October, Thomas Cook asked its banks for a £100m extension to its credit facility. Now it's back for more."

He said the company says it has not defaulted on any of its loans and that it has kept up to date with its repayments.

"But it is saying that its seeking agreement from the lending banks to make adjustments to its loans, suggesting that if it hasn't defaulted yet, it fears in the going forward, it may be in a position where it is unable to repay it's debts," Hills said.

Looking at the bigger picture, he added: "This is all about British consumers in particular under pressure, finding that for the past three years their pay has not risen in line with prices, and presumably they are booking less holidays."

Thomas Cook reassured those who have already booked holidays with them that their travel plans would still go ahead.

It added would-be holidaymakers could still book with confidence with the company.

Independent senior travel editor Simon Calder told Sky News that travellers should not panic despite the figures looking "pretty bleak" for the travel company.

He said: "It's an awful time to be in the mainstream packaged holiday business. For a start, you've got all these expensive aircraft - Thomas Cook airlines just unloaded some - which are competing directly against the very good, very efficient low-cost airlines.

"You've also got high street rental premises which are costing an awful lot in rent when people are happy to book on the phone or online.

"And, worst of all, it used to be that only holiday companies could put together a holiday, but if you've got a broadband internet connection, you would assemble your own package in five minutes online."

"My lovely car now sold onto a very happy new owner.
I still love this marque and I will still be around, preferred selling to breaking, as a great runner and performer"

Posted 22 Nov 2011, 16:51 #1 

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Good old Ryan Air ;) :D :gmc: in January


Posted 22 Nov 2011, 17:04 #2 

Yes John,this has been brewing for some time now.P.

Posted 22 Nov 2011, 18:25 #3 

On PM, Radio 4, this evening the travel writer commented:

If you held 100 shares at thestart of the year they would have bought you a £199 ski holiday. Today they would not pay for the fare on the Gatwick Express.

He also commented that people are now doing their own thing in arranging their own holiday elements.


"Don't think of them as problems, think of them as opportunities."
"OK, I think I've hit an insurmountable opportunity!"


Posted 22 Nov 2011, 20:15 #4