Thomas Cook announces £1.45bn loss.
Discussion
Shar2 said:
Nothing to do with the on going 737Max trouble then. Yep, let's blame everything on Brexit. How about just blaming the politicians for making a right royal cock up of it all.
Erm... None of the Thomas Cook airlines have a 737-MAX in their fleet.None of their four airlines even have a 737 of any generation in their current fleet.
Brexit certainly is a huge influence and part of the overall problem. The problem is that growth in travel has flatlined (if not shrunk), largely part due to Brexit combined with the massive buildup in capacity has lead to a lot of seats going unsold.
Thomas Cook's other problem is that they were trying to vertically integrate as a single travel provider selling packages on their own airlines with their own hotels. This business model of being an all inclusive travel agent doesn't work in the modern world where the average traveller can book their own flights and accommodation via the internet for far less. This business model is dying, but it's a death being hastened by Brexit, without it Thomas Cook could stumble on for years in it's current form or even manage sense it's own mortality and reinvent itself.
Due to the glut in capacity, airlines that operated on shoestrings or over-extended themselves are failing (Primera, Monarch, FlyBMI, Germania) and even Ryanair has posted a loss recently. So the age of £20 flights to Spain is ending as the market contracts and re-gears itself for profitability. There is simply too much capacity from too many providers to weather worsening economic conditions.
Edited by captain_cynic on Thursday 16th May 11:20
croyde said:
Over a year ago, I did exclaim to our local carpet fitter that his prices seemed a bit high.
'Brexit mate!' was his answer.
I'll admit that I'm a remainer who is so sick of this slow plaster removal from a hairy leg of a process that I just want it done.
Companies left, right and centre are using Brexit as an excuse to do what they were going to do anyway but needed a scapegoat.
Yep. 'Brexit mate!' was his answer.
I'll admit that I'm a remainer who is so sick of this slow plaster removal from a hairy leg of a process that I just want it done.
Companies left, right and centre are using Brexit as an excuse to do what they were going to do anyway but needed a scapegoat.
Can anyone, hand on heart, say that they've chosen not to travel abroad for a holiday because of the UK deciding to leave the EU? b
ks.p4cks said:
croyde said:
Over a year ago, I did exclaim to our local carpet fitter that his prices seemed a bit high.
'Brexit mate!' was his answer.
I'll admit that I'm a remainer who is so sick of this slow plaster removal from a hairy leg of a process that I just want it done.
Companies left, right and centre are using Brexit as an excuse to do what they were going to do anyway but needed a scapegoat.
Yep. 'Brexit mate!' was his answer.
I'll admit that I'm a remainer who is so sick of this slow plaster removal from a hairy leg of a process that I just want it done.
Companies left, right and centre are using Brexit as an excuse to do what they were going to do anyway but needed a scapegoat.
Can anyone, hand on heart, say that they've chosen not to travel abroad for a holiday because of the UK deciding to leave the EU? b
ks.k out of it on the 1800 mile trip at some point! Went MTBing in Scotland instead.
captain_cynic said:
Shar2 said:
Nothing to do with the on going 737Max trouble then. Yep, let's blame everything on Brexit. How about just blaming the politicians for making a right royal cock up of it all.
Erm... None of the Thomas Cook airlines have a 737-MAX in their fleet.None of their four airlines even have a 737 of any generation in their current fleet.
captain_cynic said:
Thomas Cook's other problem is that they were trying to vertically integrate as a single travel provider selling packages on their own airlines with their own hotels. This business model of being an all inclusive travel agent doesn't work in the modern world where the average traveller can book their own flights and accommodation via the internet for far less. This business model is dying, but it's a death being hastened by Brexit, without it Thomas Cook could stumble on for years in it's current form or even manage sense it's own mortality and reinvent itself.
Interesting that Jet2 seems to be going the other way - if you book one of their packages, they fall over themselves to give you bags, transfers etc, but if you book flight only, it's something like £40 each way for a bag & kids have to pay adult fares from age 2, on their packages I think child seats are free. Also noticed from looking for a holiday recently that TUI in particular seem happy to flog you a package with their hotel, but EasyJet or Thomas Cook's flights rather than either their own aircraft or a Sunwing/Norwegian hire-in.The package vs DIY thing might be different outside of London though - from regional airports you're more likely to find a bucket & spade trip with someone like Jet2/Thomas Cook or, if you're lucky, EasyJet/Ryanair rather than being able to choose from Iberia/BA/all the LoCos competing on the same route.
Diversion said:
Why would Brexit stop people going on holiday?
We have a couple of European holidays booked for later this year just as we have for the past few years
We're not going abroad to the place we've been for eight years as when we went to book again through our friendly travel agent the price of the overall holiday was 50% higher than the previous year, justified through "higher flight costs due to less availability of flights as airlines are not flying as many planes due to Brexit". (A quick look on Expedia confirmed that at the time, there were indeed only a few flights per day on the Manchester - Palma route, rather than the usual 8 or 9 on School half term Saturdays).We have a couple of European holidays booked for later this year just as we have for the past few years
So we're off to the Isle of Man as we didn't have the money to pay the extra to go to Spain.
Edited to add the money grabbing airline that had increased it's prices was.............................Thomas Cook!!!!!!!
Edited by StanleyT on Thursday 16th May 12:46
Glasgowrob said:
more like £300 million loss when you take out the writedown
Exactly.It's probably the press taking a figure that best sensationalizes the news.
Shrinking you business by closing shops and getting rid of staff will always carry a high one off cost but if they want to survive, they it has to be done.
QUOTE Actually, we did make that decision at Easter, only because it was going to be driving a brand new (someone else's) 60k motorhome back from Italy on British plates back to UK, and I did not trust some of the Euro Neanderthals to not smash fk out of it on the 1800 mile trip at some point!
Went MTBing in Scotland instead. ENDQUOTE
Wow is that likely? Does jonny foreigner hate the uk for voting leave? Why, missing the money we have to put into the eu? I hadnt considered that when I will be driving through france in July for a few weeks.
Went MTBing in Scotland instead. ENDQUOTE
Wow is that likely? Does jonny foreigner hate the uk for voting leave? Why, missing the money we have to put into the eu? I hadnt considered that when I will be driving through france in July for a few weeks.
egor110 said:
Tankrizzo said:
Whilst I think that some companies do blame Brexit for their own woes, this is an obvious case to me where Brexit is bound to have a direct impact. I know a fair few people who put their holiday plans back a bit this year because of what might happen.
Why not go to a non e.u country ?oyster said:
egor110 said:
Tankrizzo said:
Whilst I think that some companies do blame Brexit for their own woes, this is an obvious case to me where Brexit is bound to have a direct impact. I know a fair few people who put their holiday plans back a bit this year because of what might happen.
Why not go to a non e.u country ?The best flight deals I've been able to find recently have been to SE Asia, places like Thailand, Malaysia and the Philippines. £450 return on a decent airline is pretty damn good and once you're on the ground, things are cheap.
Those who can't tolerate a 10 hour flight are simply travelling less overall.
croyde said:
Just this second had a message from EE telling me that calls from the UK to Europe have dropped from pounds or more/minute to 19p/min and texts are only 6p, if you are a pay monthly subscriber.
They don't appear to be bothered by Brexit then.
That makes them one of the more expensive carriers for EU roaming... I'm with Plusnet who are using EE's network and EU roaming is free (I.E. uses your plan's allowance), that's pay monthly with no contract. They don't appear to be bothered by Brexit then.
For the last 3 years me and Mrs Snuffy have had two one week holidays a year, all to Eu countries (Malta, Cyprus and Madeira (I know Madeira is not a country before anyone points that out)).
My criteria for selecting the holiday company are: Hotel we want, price we are happy with and flight times (flight times and hotel are the most important). On each occasion I've looked at Jet2, EasyJet Holidays, TUI and Thomas Cook. And we have been with Jet2, EJ and TUI. Never TC - why ? Because their options were ste. So on a poll of one (i.e. me) I can see why TC are doing badly - they are crap.
My criteria for selecting the holiday company are: Hotel we want, price we are happy with and flight times (flight times and hotel are the most important). On each occasion I've looked at Jet2, EasyJet Holidays, TUI and Thomas Cook. And we have been with Jet2, EJ and TUI. Never TC - why ? Because their options were s
te. So on a poll of one (i.e. me) I can see why TC are doing badly - they are crap.I know a lot of people who were holding back before Brexit was pushed back.
We hadn't booked in case the dog could no longer travel, we were going to drive as we had a new rescue dog.
However, whilst Thomas Cook have put their prices up flights, hotels and villas for those who like to book themselves have gone down considerably.
Our flights to Alicante last year were £1350 return for 3, this year they are under £600 and we are going a week into school holidays, that would have been £1900 last year, hence we took him out 2 days early.
There are loads more deals on apartments and hotels, and loads of choice for villas too.
Thomas Cook are making James Villas look cheap, they have lost the plot imho.
We hadn't booked in case the dog could no longer travel, we were going to drive as we had a new rescue dog.
However, whilst Thomas Cook have put their prices up flights, hotels and villas for those who like to book themselves have gone down considerably.
Our flights to Alicante last year were £1350 return for 3, this year they are under £600 and we are going a week into school holidays, that would have been £1900 last year, hence we took him out 2 days early.
There are loads more deals on apartments and hotels, and loads of choice for villas too.
Thomas Cook are making James Villas look cheap, they have lost the plot imho.
Fundoreen said:
Weird how people would avoid EU destinations. I guess its the shame of making eye contact with people that realize you secretly hated them all along.
I'm in Greece right now with my youngest grandson, as. I have been on every single oneof his Birthdays. No hatred for any europeans from , or for us here.
Absolutely no avoidance or shame in the mutual eye contact.
Lots of mutual and heartwarming welcomes though.
As for weirdness that seems to be eminating from your hate filled Remoaner mind.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff