Cooks and TUI Threaten UK Government

Thomas Cook's head - Manny, Fontenla-Novoa speaking prior to the meeting between Transport Supremo Geoff Hoon and TUI - threatened that they could force the government's hand by reducing the amount of ATOL bonded travel. In what would seem to be an initially high handed threat - it may prove hollow in the end and he is only playing to the peanut gallery on this one.

What is the issue? Cooks and TUI want a flat rate fee but charged to the customer for ATOL coverage. At the moment they are paying less than GBP1 and they like it that way. Their costs under the current discussed proposals could rise by GBP5 million approx each.

Asked how the big two could force action, Fontenla-Novoa said they must keep it on the agenda of consumers and “chip away” at airline opposition to a universal protection scheme.

If you put this in context they are already dramatically reducing their ATOL business next year because of its lack of profitability. Now that the big 4 are a Monolithic 2 - they can try and throw their weight around.

I doubt this will be more than a PR exercise for them both. But in the end - there should be some form of coverage even if its a mandatory insurance policy paid for by the consumer.

Cheers

European Tours - Savage cuts at TUI and T Cook

Ouch... this is yet another set of stats you don't want to hear.

TUI group will slash its Tours in 2009 season by 27%. this is on top of Cook's cuts of 15%. The cuts will primarily occur in the packaged short haul (read Spain) markets.

So if this happens - who can benefit from this? Strangely enough there are several sets of winners.

The LCCs will really benefit. Again a little wierdly it will be the non-Spanish airlines. Spanair, Clickair/Veulling and even Iberia are all hurting. Futura and XL (UK) are of course gone and LTE is very sick. So it will be Air Berling, Ryanair and Easyjet.

Also to benefit will be YouTravel.

Chaps its your advantage take it!