The fall of the dominoesBack to Forum
Thomas Cook collapses
…..and all for GBP200. The government has refused that quantity to keep the company operating so (on their own reckoning) now have to pay out GBP600. Families suffer, the taxpayers are lost and unemployment benefit has to be forked out………..and all for political pigheadedness and rigid dogmatic posturing. Madness.
1 user thanked author for this post.23 Sep 2019
Another one is slipping down the greasy pole….
–“Adria Airways flights grounded in cash squeeze”, (Travel Weekly, 24-9-19)
–“Adria Airways suspends flights on Tuesday and Wednesday and is desperately looking for additional funds”, (Aviation24.be 23-9-19)
……..and yet another candidate appears,
–“Air Serbia Temporarily Suspends New York JFK Flights”, (Simple Flying 24-9-19)24 Sep 2019
The figures of £200 million and £600 million while originally quoted suddenly changed to £250 million and “very worst case” at £600 million but probably nearer £150 million. Thomas Cook were a basket case for several years trying to restructure themselves in a “bricks” environment when a lot of package holidays were switching to on-line or just “self packaging” using LCC and hotel booking websites. The £250 million would have kept Thomas Cook afloat for another year or two and then guess what…..24 Sep 2019
The figures of £200 million and £600 million while originally quoted suddenly changed to £250 million and “very worst case” at £600 million but probably nearer £150 million. Thomas Cook were a basket case for several years trying to restructure themselves in a “bricks” environment when a lot of package holidays were switching to on-line or just “self packaging” using LCC and hotel booking websites. The £250 million would have kept Thomas Cook afloat for another year or two and then guess what…..
The figures quoted by transtraxman are of course total nonsense, as has been covered on the TC thread. The cost to the Government is likely to be +/- £100m as widely reported in the media and government ministers. While the gross cost is higher, much of it will be picked up by ATOL and credit card companies not by the taxpayer.
That also rather deflates the wider (rather sensational) argument about a bail out – if you were the government would you rather pay out £100m to get everyone home or throw £200m of public money down a bottomless pit? It’s quite clear however sad that TC was finished. Many hoteliers it seems have not been paid a cent this season, interest of £170m a year to pay and reported today that the first 3m holidays sold each year only cover debt servicing.
Thankfully ministers have had the good sense not to throw £200m at a problem that would have recurred again in a couple of months. Remember if the business was viable then Fosun or another shareholder would have produced the money. They didn’t.24 Sep 2019
“Aigle Azur To Be Liquidated After French Court Rejects Final 2 Bids”, (Simple Flying 27-9-19)
This leads me to the conclusion that other airlines will not bid for bankrupt airlines or parts of them. They will, however, go for their custom and pick up the slots, the aircraft and the personnel that interest them.And it is most likely to be the same in every case.28 Sep 2019
It’s reported by Aviation24.be that Adria will operate a very few flights to FRA in the coming days.
It remains to be seen what will happen next week.28 Sep 2019
Given the recent news of an IAG “profit warning” is that a reason to think that British Airways will be the next domino to fall…. Certainly with their recent behaviour it looks as if there is something “pear shaped” about their performance…29 Sep 2019
Latest news on Monday afternoon September 30.
Adria Airways has filed for bankruptcy.30 Sep 2019
…………..not to forget that XL is now also history.
“XL Airways ceases operations”, (Aviation24.be 30-9-19)
This closure with that of Aigle Azur thus reduces competition in Paris for French BEE, Corsair, and LEVEL, who are fighting for the same market. It is bad news for some but good for others.
It is not to be forgotten that the same website announces the bankruptcy of “Thomas Cook Retail Belgium” which according to management was a profitable company and went bust for the want of €5 million (“The management very much regrets that it was unable to find a solution for this profitable company”). So the effect of the parent company Thomas Cook´s bankruptcy is wider than could have been.
Thus ends the third quarter.30 Sep 2019
…..and we continue.
This is maybe not a big airline – it only has 9 B737s on 11 routes in Peru and Bolivia – but they all count.
“Peruvian Airlines suspends all flights and closes offices”, (Flight Global 4-10-19)
“The move comes after government authorities impounded the airline’s bank accounts earlier in the week”.5 Oct 2019