The recommended merger will see the new group called Thomas Cook plc with its headquarters in the UK and listed in London.
The travel industry continues to consolidate with the news that MyTravel, the one time Airtours, is to merge with Thomas Cook, the world”s oldest tour operator and in most recent times solely owned by German stores group KarstadtQuelle. The move will tie together MyTravel Airways, Thomas Cook Airlines, Condor and Condor Berlin, which KarstadtQuelle took over when it purchased Lufthansa”s 50% of Thomas Cook late last year. The combined fleet will total nearly 70 aircraft and is totally Airbus with the exception of Condor, which operates Boeing 757 and 767 ”planes.
In its last financial year, ended 31 October, MyTravel made a pre-tax profit of ”43.8m (”65.7m) compared with a ”17.4m (”26.1m) deficit in 2005 having lost money in each year since 2001. The merger is subject to approval from the anti-trust authorities and the shareholders of MyTravel plc as well as the final closing of a previously announced transaction with Lufthansa, an earlier Thomas Cook shareholder. KarstadtQuelle will hold 52% in the new company and will consolidate it fully. The MyTravel shareholders will hold 48%.
At the time, Peter McHugh, chief executive, also made it clear that MyTravel might seek other strategic acquisitions in 2007. ”The possible acquisition of (rival) First Choice”s mainstream business and certain related operations is one of a number of opportunities we are evaluating,” he said. First Choice appears still to be up for sale.