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delderek
18-04-2012, 10:40
18 April 2012
Fred Olsen pulls out of Thomas Cook

Cruise line Fred Olsen is believed to have become the first supplier to end its relationship with Thomas Cook after insurer Euler Hermes pulled its third-party cover for products sold by the retailer.

Fred Olsen confirmed in a statement that it had ended its trading relationship with Thomas Cook Co-operative Travel following discussions over recent weeks.

It said it had a policy not to trade with any agent where any money collected on its behalf was not financially protected. It added that it would be writing to any customers who had booked its cruises through Thomas Cook and not yet paid their full balance and collecting the balance payment directly.

Euler Hermes last week wrote to a number of suppliers giving them 30-days notice of its intention to pull cover for new bookings taken by Thomas Cook.

Fred Olsen sales and marketing director Nathan Philpot said: "We have enjoyed a long and fruitful relationship with Thomas Cook and The Co-operative Travel retail outlets and we will end our relationship in amicable fashion following our discussions where, regrettably, we were unable to reach agreement. We thank TCCT and all their staff who have booked clients on to our cruise ships over the years. We hope this is only a temporary measure and that we can begin trading again soon."

Thomas Cook confirmed that it would no longer be racking Fred Olsen products from today or making any new bookings for the cruise line. In a statement it said: "Whilst we don't disclose confidential terms with individual suppliers, we can confirm that we've not been able to reach agreement with Fred Olsen on new commercial arrangements. Therefore, from today, we will not be racking their products nor making new bookings with them through our network of 1,200 stores or via our call centres.

"We are the UK's largest retailer of cruise holidays selling all the major cruise operators, and Fred Olsen represented only a very small part of our UK retail business. We also sell more third party holidays than any other UK travel retailer alongside our own tour operator products."
"Of course customers who have already booked with us to travel on a Fred Olsen cruise can be reassured that their holiday will continue as booked."

She claimed Fred Olsen accounts for less than 4% of Thomas Cook's UK cruise business and less than 0.5% of its total retail customers.

From Travel Mole

Santiago
18-04-2012, 15:50
Does this mean that, in spite of protestations at the end of last year, Thomas Cook is actually in trouble? If so, what will happen to all those holidaymakers who have booked holidays in Tenerife in hotels owned or mainly used by Thomas Cook? This could cause serious problems, not only in Tenerife but also in all the Canary Islands, especially as the Canarian government is limiting privately booked accommodation (as per the illegal lettings thread).

delderek
18-04-2012, 16:16
]Does this mean that, in spite of protestations at the end of last year, Thomas Cook is actually in trouble?[/B] If so, what will happen to all those holidaymakers who have booked holidays in Tenerife in hotels owned or mainly used by Thomas Cook? This could cause serious problems, not only in Tenerife but also in all the Canary Islands, especially as the Canarian government is limiting privately booked accommodation (as per the illegal lettings thread).

Also a report, that they are trying to sell off their ageing aircraft, and lease them back. So people should form there own conclusions.

TOTO 99
18-04-2012, 16:33
I just hope they don't leave it until the summer before collapsing.
I'm guessing customers would be covered by an ABTA type set up but it would ruin a lot of families holidays.
I can't imagine anyone wanting to make a booking now after this new report so that'll just make things even worse.
Not looking good.

warbey
18-04-2012, 18:44
Also a report, that they are trying to sell off their ageing aircraft, and lease them back. So people should form there own conclusions.

If You look at Holiday Company Aircraft, You8 will be lucky to find
One that has NOT Leased three quarters of the Aircraft they fly.

Fact of Life

Bazz
18-04-2012, 19:23
Well I have booked and paid in full a large sum for summer and Christmas flights!
I hope I am not going to be disappointed :(

marbro8
18-04-2012, 21:00
Well I have booked and paid in full a large sum for summer and Christmas flights!
I hope I am not going to be disappointed :(we have booked flights coming back with them in may but booked on credit card:pray:

delderek
14-05-2012, 11:10
14 May 2012
Thomas Cook's stark warning to shareholders

Thomas Cook has warned shareholders that unless they approve the sale of some of its aircraft and its interest in a Spanish hotel chain, the tour operator could be in trouble.

It has called a general meeting on 29 May for shareholders to approve the sale and leaseback of 17 of its aircraft and the disposal of five Spanish hotels.

If agreed it will see the sale of its interest in Spanish hotel chain Hoteles Y Clubs De Vacaciones (HCV) complete as quickly as 29 June, the Aircastle aircraft disposals by 30 June and Guggenheim aircraft by 31 July, raising £238.8 million in total for the operator.

But if shareholders do not support the move, it could jeopardise the recent £1.4 billion refinancing package which gives Thomas Cook a further three years to repay its debts.

In the information sent to shareholders, Thomas Cook said that "the Company is of the opinion that, if any one or all of the Disposal Resolutions is not passed, the Retained Group will not have sufficient working capital for its present requirements, that is, for at least the next 12 months following the date of publication of this Circular".

The shareholder circular showed Thomas Cook had losses of £262.7 million in the six months to March 2012 compared to losses of £165.8 in the six months to March 2011.

The tour operator is still looking to sell its stake in air traffic control service, NATS and its part of currency exchange business Thomas Cook India.

On announcing the sale and lease back of 17 aircraft on Friday, CEO Sam Weihagen said that first half seasonal losses had widened but that summer bookings had improved in recent weeks, see previous story.

Average selling price is stable, up 4%, and bookings for independent and specialist businesses are up 11%. Net debt as of March 31 was £1.39 billion.

The company appointed ex-Kwik Fit finance boss Michael Healy as chief financial officer last week and is believed to be close to appointing a new chief executive.

By Diane Evans

From Travel Mole[/I]

Rickiebear
14-05-2012, 11:21
Hi, by the sale and lease-back of their aircraft, will not only give them vital cash, but will also reduce their maintainence costs, as well as giving them more flexibility on routes.
This can only be good news.
The rising exchange rate for the £, will also increase bookings.

lapalma
14-05-2012, 12:52
Thomas Cook have had cash flow problems for more than a year,it was inevitable that this would happen,so sad.They got re-financed again last week but this may be cash to pay off some debt.

Dan747
22-05-2012, 22:54
Important I feel to point out before people start panicing about Thomas Cook aircraft and thinking they are going to drop out of the sky, aircraft are not the same as cars and at 15 years old are not considered 'old' and 'a load of junk' within the industry.

Aircraft can easily last into their late 20's before they are retired or more commonly, are bought for cargo operations as they are still very safe and well looked after, the only downside an older aircraft has to the operator is the fact the maintenance costs become higher as they have to do more expensive checks.

Thomas Cook will no doubt get shareholder approval and their aircraft will be bought and leased back to them, it's an easy money maker for a leasing company and Thomas Cook will then be able to start to reduce their debt.

It's going to be a long and slow process, but I can't see them going anywhere anytime soon.