Thomas Cook going bump.
Discussion
business types
how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
Glasgowrob said:
would certainly get people booking again if it was government backed
I don't think it would - the public are fickle and hypocritical and therefore don't care who actually owns a company. Money talks and if Thomas Cook products are not as competitive as others (TUI group or Jet2) then they are doomed regardless of the ownership.In terms of the value of it - the cost of repatriation is likely irrelevant compared to the forward bookings that exist. There is the whole year ahead of families already booked that need funding somehow and presumably there are a hell of a lot of unsold holidays as well. Does anyone believe that they can sell those holidays in the current climate with no cash flow (value of the £ etc)
I think it was obvious a year ago that holiday companies were going to go the wall and investing in them was a high risk strategy. Is the risk any lower now looking forward - no, if anything it is higher.
I can't see who would want to take this risk but then I haven't got the £1B probably needed to do so.
Glasgowrob said:
business types
how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
Is that even legal under EU competition laws? Govts are not meant to interfere in the free market and give state aid. how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
How long before Tui sues due to unfair advantage?
Oh well, whether they go under or not, I've booked Jet2 flights home for an hour later than planned from the same airport and arriving at the same airport as the TC ones. Now I've done that, you can guarantee they'll survive and I'll be £400 lighter for nothing, but I can't be stuck here beyond Wednesday, so that's that.
Glasgowrob said:
business types
how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
The market cap [share equity] is approx £53.m. The kicker is that when a company is taken over, the new owner assumes the debt approx £1.7b. Given that in the first half of the year the company reported a loss of £1.5b, it is very hard to see the company as a going concern.how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
Glasgowrob said:
business types
how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
This is a terrible idea. We should not have bailed out the banks, and we shouldn't bail out Thomas Cook. Capitalism as a system works, like so many other things in life, via negativa - it's not so much that the well run companies make squillions, but that the badly run ones go bankrupt. It has to be allowed to happen.how much do you reckon it would cost to buy thomas cook outright?)
more or less than the £600million to repat the the customers home.
could UK plc buy thomas cook out same as the banks then get it back on an even keel, save jobs and possibly turn a small profit into the bargain.
would certainly get people booking again if it was government backed
Heaveho said:
Oh well, whether they go under or not, I've booked Jet2 flights home for an hour later than planned from the same airport and arriving at the same airport as the TC ones. Now I've done that, you can guarantee they'll survive and I'll be £400 lighter for nothing, but I can't be stuck here beyond Wednesday, so that's that.
Yeah, it’s certainly cost you but sometimes you have to be proactive and sort yourself out and worry about the cost later. There are plenty of sheep you’ll just turn up at the airport and then do their best Daily Mail sad face when there’s no flights and all other operators are charging wallet raping costs to get people home.At least you can now enjoy the rest of your holiday worry free.
Enjoy the Sun!
Shame to see it happen. Sad to see it when Monarch folded, an icon of travel gone but after a week everyone forgot what happened. With all the press about the difficulties it almost confirms their fate. If it wasn't reported in the news then things might be alright.
They have been struggling for months and months now, working in the industry their finances are widely known. They have tried desperately to tap into long haul and have it subsidise the short haul/package side. It has only bought them some time and completing with the likes of Virgin, it hasn't worked.
Markets have changed and it's a long way down the line before companies feel it. I could walk into a Thomas Cook on the high street, pick something out of the brochure and pay a £(£££?) picked out of the air. Not really knowing what I am buying.
Or, easyjet, trip advisor and book the hotel with the best reviews, unlimited personal research, tailored to exactly what you want, online with a few clicks and can compare all the prices at your own leisure. No brainer really. Price and (less so) convenience trumps everything, this is why ryanair are thriving and companies like Thomas Cook are swimming to stay afloat.
They have been struggling for months and months now, working in the industry their finances are widely known. They have tried desperately to tap into long haul and have it subsidise the short haul/package side. It has only bought them some time and completing with the likes of Virgin, it hasn't worked.
Markets have changed and it's a long way down the line before companies feel it. I could walk into a Thomas Cook on the high street, pick something out of the brochure and pay a £(£££?) picked out of the air. Not really knowing what I am buying.
Or, easyjet, trip advisor and book the hotel with the best reviews, unlimited personal research, tailored to exactly what you want, online with a few clicks and can compare all the prices at your own leisure. No brainer really. Price and (less so) convenience trumps everything, this is why ryanair are thriving and companies like Thomas Cook are swimming to stay afloat.
CharlieH89 said:
Package holidays charge £2.50 a person for ATOL protection when you book.
I’m guessing there is a shortfall with how much they have in reserve?
Where is the £600m quote coming from?
The government, i believe the dept for transport, but it doesn't say what that includes I’m guessing there is a shortfall with how much they have in reserve?
Where is the £600m quote coming from?
borcy said:
CharlieH89 said:
Package holidays charge £2.50 a person for ATOL protection when you book.
I’m guessing there is a shortfall with how much they have in reserve?
Where is the £600m quote coming from?
The government, i believe the dept for transport, but it doesn't say what that includes I’m guessing there is a shortfall with how much they have in reserve?
Where is the £600m quote coming from?
The following paragraph from BBC reporting reads as though TC are saying "give us 200M now, or you (the gov) will face a bill of 600M later."
In other words, TC trying to blackmail the gov into bailing them out.
"First - and most important - I'm told that the government does not recognise the choice being presented as being between spending £200m on a cash injection to save the company versus a bill of £600m to repatriate UK holiday makers."
..and this from Sky News..
"A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation.
One insider described the widely reported £600m tab, however, as being "a gross overestimate of the cost to taxpayers".
"executives" being TC, not gov officials.
Edited by JonChalk on Sunday 22 September 09:08
Heaveho said:
Oh well, whether they go under or not, I've booked Jet2 flights home for an hour later than planned from the same airport and arriving at the same airport as the TC ones. Now I've done that, you can guarantee they'll survive and I'll be £400 lighter for nothing, but I can't be stuck here beyond Wednesday, so that's that.
You should have gone to sky .....https://news.sky.com/story/thomas-cook-collapse-wo...
Who plans a holiday and only takes enough medication for 6 days .....
Obviously 9000 Uk staff out of a job is less of a concern for most holiday makers, in this instance I think the govt should help out.
JonChalk said:
I'm not sure.
The following paragraph from BBC reporting reads as though TC are saying "give us 200M now, or you (the gov) will face a bill of 600M later."
In other words, TC trying to blackmail the gov into bailing them out.
"First - and most important - I'm told that the government does not recognise the choice being presented as being between spending £200m on a cash injection to save the company versus a bill of £600m to repatriate UK holiday makers."
..and this from Sky News..
"A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation.
One insider described the widely reported £600m tab, however, as being "a gross overestimate of the cost to taxpayers".
"executives" being TC, not gov officials.
I guess the monarch repat flights might well give a good idea of cost. There was something like 100,000 to bring back. The following paragraph from BBC reporting reads as though TC are saying "give us 200M now, or you (the gov) will face a bill of 600M later."
In other words, TC trying to blackmail the gov into bailing them out.
"First - and most important - I'm told that the government does not recognise the choice being presented as being between spending £200m on a cash injection to save the company versus a bill of £600m to repatriate UK holiday makers."
..and this from Sky News..
"A request for emergency government funding was made by Thomas Cook earlier this week, with executives arguing that the cost to taxpayers would be dwarfed by the bill incurred by the repatriation.
One insider described the widely reported £600m tab, however, as being "a gross overestimate of the cost to taxpayers".
"executives" being TC, not gov officials.
Edited by JonChalk on Sunday 22 September 09:08
Edit, here's an article about monarch. 60m quid
https://www.bbc.co.uk/news/business-41477267
Edited by borcy on Sunday 22 September 09:28
stevemcs said:
..in this instance I think the govt should help out.
..and set a precedent to all businesses that it doesn't matter if your poor decisions, shoddy management and lack of planning leading to £1.5Bn loss in six months; someone (the taxpayer) will bail you out?Who operates a highly variable business in the current climate with massive debts / losses and expects to bailed out by someone else?
It's no different to the "too big to fail" argument used by arrogant banks, just before their poor decisions, shoddy management and lack of planning led to their forced bailouts.
Clearly, at the holidaymakers level, it's immensely distressing, but that doesn't mean I have to pay to repatriate someone who made a poor judgement when selecting their holiday?
Glasgowrob said:
You do wonder if it hadnt been reported in the media whether they would survive
Problem is the last few days it's been all over the press and no one is going to book a thing with them so short term cashflow is gone
9 billion turnover is what £25 million a day
Id imagine that's halved easily the last few days piling extra pressure on
To be fair, the news they are struggling has been in the media for months if not over a year. Most people have an attitude that if they perceive it to be a ‘big’ company, it will never fail.Problem is the last few days it's been all over the press and no one is going to book a thing with them so short term cashflow is gone
9 billion turnover is what £25 million a day
Id imagine that's halved easily the last few days piling extra pressure on
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