Thomas Cook have announced that the company plans to sell off and leaseback 17 of its fleet of 90 aircraft in a bid to raise vital funds to reduces its debts.
The sale and leaseback agreement would release a total of £182.9 million, from eleven Boeing 757 aeroplanes and six Boeing 767 aeroplanes. The money would be “retained by the Group” and used towards the company’s debts.
Speaking of the sale and lease of planes, Sam Weihagen, CEO of Thomas Cook stated: “Today’s announcement demonstrates the progress which we continue to make to strengthen the Group’s financial position, with the aircraft disposals providing substantial additional liquidity.
“As expected, the first half seasonal losses have widened however, summer bookings have improved in recent weeks.”
The group have recorded a tough start to annual sales, since the announcement that the company was struggling last year. Currently bookings are down by 9.0 per cent when compared to the same time last year – even with a 17 per cent reduction of the number of holidays that the company has to sell. Yet with the reductions, Thomas Cook still has 19 per cent of all holidays to sell for this year in its commercial properties and online.
In a statement, the company spoke of their decline and the plan to restructure the company to ensure its survival: “Since early 2010, the Group has been subject to a number of exceptional external shocks, most notably the closure of European airspace due to volcanic ash clouds in April 2010, and more recently the political and civil unrest in the important MENA destinations, the combination of which, alongside the underperformance of the UK business, have significantly reduced the Group’s profitability and financial flexibility.
“The Group’s management has already taken action through the implementation of a UK turnaround plan to stabilise the UK business and drive improved profitability over the medium term.”
Do you think the sale of Thomas Cook’s aircraft will help the company to survive? Or do you think the trust in the operator has already gone and so people will favour booking their holiday elsewhere?
Previous Post
Sleeping at your Office Desk? Here’s Why…
