navylad

They also have a long term wet lease from air tanker (the company that has the MOD transport contract so the plane can be pulled for military use).

PUCCI GALORE

I keep getting Come Ons from Norwegian and Flybe with more prices on sale. Mind you, I get these constantly from Vueling.

AlanA

Bond holders for Thomas cook have agreed an extension until the end of September to finalise a deal with FOSUM, a Chinese travel company.
So they may survive
https://www.ttgmedia.com/news/news/t...cue-deal-19321

Bohinjska Bistrica

You would have to imagine that if the FOSUM deal falls through it's curtains for Thomas Cook. Hopefully that can be avoided.

I see Norweigan have been given another reprieve as well with bondholders delaying, pwith the promise of an additional 5%. I honestly can't see a way out for them unless they have more or less immediately found a surprisingly quick method to stop burning through money. I hope they stay afloat as I found them to be very good, but they seem to be in a prelonged death spiral - never more than a few months away from needing to raise more money, which is then quickly lost.

Nicc HK

From the figures published and it is late here, the airline business is in the black the rest in the red. The questions are, 1 How are revenues/costs allocated? & 2. Cross border tax accounting?

Without the airline the group is in bad shape, but the airline ownership means non-EU ownership is an issue, catch 22.

Although LH is politically well connected, Condor is a problem and the only other realistic candidate IAG does not appear to be interested, yet I would argue should be the most logical partner on the airline side.

alex67500

My understanding from Norwegian's problem is a bond repayment early November, hence why they gave their LGW slots as collateral in the meantime. Any idea if that is the case?

Asking for a friend flying late October (they were really cheaper at the time, but the why shows on their bottom line now)

Bohinjska Bistrica

It seems that the bond repayment has been deferred, which gives some breathing space. An additional 5% was promised, although whether that ever materialises is I guess another matter!

In the meantime I think they are probably OK for at least a few months, but I - and I stress this is simply a personal view as I'm not an expert in such matters - would be wary of booking with them if the travel was more than six months away.

navylad

Latest on the Thomas Cook situation with the Sun

https://www.thesun.co.uk/travel/9944...e-deal-latest/

In essence, the airline needed a rescue deal, blaming brexit uncertainty, and has secured funding for it through selling off some of its business and by attracting investment, but decided it needed more as a contingency. Shareholders vote on the rescue package pushed back from mid to end of the month. License due for renewal on 1 Oct. Worth ensuring you have comprehensive insurance, utilising credit card protections and if possible to book as an ATOL protected package (which would give you a refund in the event of collapse or allow you to complete the holiday if already started).

rapidex

Typical. Pretty girls get all the best offers

aidy

I was there for years, you can’t look at those figures, even when the transfer pricing has been stripped out, the UK airline is solely dependant on the package holidays to fill the seats (seat onlys are very small 10-20 per flight) the German airline (Condor) is more independent and would survive on its own, the UK no chance.

navylad

Latest on Thomas Cook from the BBC

Thomas Cook races to secure more rescue funds https://www.bbc.co.uk/news/business-49761464

Creditors banks have demanded the airline find an addition £200m or the airline will fall into administration this weekend. The airline admit the next 24 hours are crucial but state there is a “reasonable prospect” of a deal. Meanwhile CAA stand by with Operation MATTERHORN to bring home 150k holidaymakers if the firm goes under.

Further update, BBC now reporting here Thomas Cook asks government for bailout in funding race https://www.bbc.co.uk/news/business-49761464 that they are approaching the government for a bail out.

rapidex

They may yet get away with this. Ryanair is not expecting the B737max to fly before March at the earliest. With the latest RR problems on the B787 that might be enough to push Norwegian over the edge. TC's airline is profitable, its just the rest of the business, but there may be a buyer lured for the airline with the difficulties at Norwegian.

milkyway88

Who would buy the airline?

IAG - Doesn't really fit with BA apart from the LGW slots and the A321's but could with LEVEL or Vueling
VS - Long Haul destinations fit with there business at MAN or LGW. The shorthaul could be used alongside their there holidays business and to start developing their european short haul operations alongside Flybe. However to major purchases and integrations in a few months would be difficult
LH- Does it make sense for them? I'm not sure that it fits their business model
Private Equity - Does it work as a stand alone airline without a major tour operator behind it? It might demand on if they have any useful assets to strip

Or do they judge it's better to let it go to the wall and pick up the useful pieces cheaply post administration like they did with Monarch?

rapidex

My guess would be VS would be a candidate. After their expansion statement regarding new LHR slots, and with the integration of Flybe progressing steadily, they have the financial backing.

cameramaker

If MT do go bust, wouldn't it make sense for IAG to purchase their LGW slots and some of their short haul aircraft?

It seems BA could do with a few more A321s and they're in the 220 configuration so would just need a bit of a livery job and recovering inside.