Manny gets the basics out of the way. Why has Thomas Cook merged with MyTravel?
1 - Thomas Cook and MyTravel had gaps in their portfolios.
2 - Complimentary brands. No overlap.
3 – There will be a far greater geographical spread of products.
4 – Debt free balance sheet.
On the 19 June Thomas Cool Group PLC will be born. The new company’s strategy?
1 – Integrate businesses (get 18,000 people in the UK to focus)
2 – Strengthen package business
3 – Grow independent travel segment through tailored products/dynamic packaging
4 – Extend financial services business (e.g. foreign exchange)
5 – Active role in future consolidation (“which will happen”)
“Staff strategy” – the key tenet of any merger – will be announced on June 21, Manny says.
He also refuses to answer any question regarding the staff or what will happen to the headquarters of both companies – Thomas Cook in Peterborough, MyTravel in Rochdale.
Manny goes on to give some background to the merger. Apparently Thomas Cook received an offer for “another company”, which was rejected by shareholders.
Of course most people in the industry expected a deal with First Choice – it clearly didn’t happen. Manny fusses a little by saying how much he likes and respects Peter Long (First Choice) and how they’ve seen one another a few times since the deal fell through.
The reality is that the MyTravel merger happened very quickly. Three weeks, in fact.
“It was done in a hurry. We had to decide quickly. It was a deal we wanted.
They wanted it.”
“I upset Peter [Long] and my son [who works for Scottish Widows, a majority
shareholder]”
Manny insists the deal is not “a takeover”. He might need to work harder on assuring delegates and the industry this is not the case.
He also mounts a firm defence of High Street shops (although he admits some will close as a result of the merger).
“In a VI [vertically integrated] group they are not a problem. You can still run
a very profitable business shops.”
Despite looking distinctly uncomfortable whenever staffing crops up in conversation, Manny does rather well.
And the “TUI” count for the entire session? Two. Unless you count “the other deal”, which was also mentioned twice.
Kevin May, editor, Travolution
