Thomas Cook Group
Encyclopedia
Thomas Cook Group plc is a travel company created on 19 June, 2007 by the merger of Thomas Cook AG and MyTravel Group plc. At flotation on the London Stock Exchange
52% of the shares in the new company were held by the German mail order and department store corporation Arcandor
(former owners of Thomas Cook AG) and 48% owned by the shareholders of MyTravel. On 9 June 2009 Arcandor filed for bankruptcy
. The merger, which was backed by 99.9% of shareholders, took place through the formation of 'NewCo' which effectively purchased MyTravel and Thomas Cook and was then listed on the London Stock Exchange
under the name of Thomas Cook Group plc . It is a constituent of the FTSE 250 Index
.
It was announced on 8 October 2010 that Thomas Cook Group was to merge with The Co-operative Travel
to create the UK's largest travel network.
, a cabinet-maker, in 1841 to carry temperance
supporters by railway between the cities of Leicester
, Nottingham
, Derby
and Birmingham
.
In 1851, the founder arranged transport to the Great Exhibition of 1851. He organised his first tours to Europe
in 1855 and to the United States
in 1865. In 1865, the founder's son John Mason Cook began working for the company full time. In 1871, he became a partner, and the name of the company was changed to Thomas Cook and Son.
In 1884, John Mason Cook attempted to relieve General Gordon
from Khartoum
.
In 1924, the company was renamed to Thomas Cook & Son Ltd., after acquiring a limited liability
status. In 1928, the business was sold to the Compagnie Internationale des Wagons-Lits et des Grandes Express Européens, operator of the Orient Express
. In 1948, it was acquired by Britain's
mainline railway companies. It was then bought by a consortium of Midland Bank
, Trusthouse Forte and the Automobile Association
in 1972 and by WestLB
in 1995. In 1999, it merged with Carlson Leisure.
In 2000, the company sold off its worldwide foreign exchange business to Travelex to concentrate on tours and holidays.
After the market depression, particularly following the 2001 September 11 attacks, the company started a disinvestment
programme, disposing of subsidiaries and business ventures.
In 2002, the company was acquired by C&N Touristic AG, a German
group, who in turn changed its own name to Thomas Cook AG.
On 21 December 2005, Thomas Cook AG sold off Thomas Cook International Markets, a venture which includes 60% of the stake in Thomas Cook India
Ltd to Dubai Financial LLC, a part of the Dubai Investment Group
(DIG) which manages the financial and real estate interests of HH Sheikh Mohammed bin Rashid Al Maktoum
, ruler of Dubai
.
Then in 2006 Dubai Financial LLC acquired a license to use the Thomas Cook name in the Middle East. Thomas Cook Middle East consists of the Middle East region, which has experienced a boom in travel and tourism, especially in places like Dubai, Qatar
, Oman
and so on.
Also in 2006 Thomas Cook Canada
was sold to Transat A.T.
marking Thomas Cook's exit from the North American market.
In 2006, Thomas Cook AG became wholly owned by KarstadtQuelle
.
In July 2010, Thomas Cook Group bought German tourism company Öger Tours, which was owned by Vural Öger
.
On 22 November 2011, Thomas Cook shares lost about three quarters of their value on the London Stock Exchange after the company announced it was in talks with its banks about increasing borrowing by some £100 million but the shares recovered somewhat the following day. There were also reports that the company was planning to close 200 of its 1,200 travel agencies and foreign exchange offices.
, United Kingdom. The company began operating package holidays and launched its own in-house charter airline operating under the Airtours brand in the early 1980s.
In 1996, Airtours purchased Scandinavian Leisure Group (SLG) including award winning tour operators such as Ving
and airline Premiair
.
In the late 1990s, Airtours formed the North American Leisure Group, which operated several airlines and cruise lines from its offices in Canada and California, including Sunquest Air, Sunquest West and several others.
In 2002, Airtours Group PLC rebranded under the new company-wide banner of MyTravel Group PLC. This included a name change for Airtours International and Premiair to MyTravel Airways. Shops throughout Northern Europe were rebranded to MyTravel however UK retail outlets remained under the banner of Going Places.
The company ran into financial difficulties in 2004 and needed to implement a debt-for-equity swap in order to restore its profitability.
On 6 March 2008, the company bought back its licence to operate the Thomas Cook Brand in the Middle East and Asia from The Dubai Investment Group for an amount estimated to be around 249 million euros.
In April 2008 Thomas Cook bought the luxury travel firm Elegant Resorts for an undisclosed sum. Elegant Resorts was sold by the founders Geoff Moss and Barbara Catchpole.
The company took over Preston-based Gold Medal International, owner of NetFlights, in a deal worth £87 million in December 2008.
On 8 March 2009 Thomas Cook signed a deal with Octopus Media Technology
to host, upload, and provide an online video player for Thomas Cook TV.
In Spring 2009 Thomas Cook UK signed a deal with International Entertainment Supplier The E3 Group, to exclusively supply entertainment to the group.
It was announced on 8 October 2010 that Thomas Cook Group was to merge with The Co-operative Travel
to create the UK's largest travel network. The deal will see the new network 70%-owned by Thomas Cook and 30%-owned by Co-operative Travel.
The new Thomas Cook Group PLC has seven Core Consumer Brands including Thomas Cook, Sunset, Airtours, Neckermann, Condor Airlines
, Ving, Direct Holidays and My Sunquest.
The company operates in five main divisions, UK, Northern Europe, North America, continental Europe, and German Airlines.
With a joint fleet, at merger, of 97 aircraft, 2,926 stores, 32,722 employees, and over 19.1 million annual customers, the new group became the second largest travel company in Europe and the UK, behind TUI Travel
, and the largest in the Scandinavian, French, Dutch, German and North American markets.
and Peterborough United football clubs. On 22May 2009, Manchester City announced that the six-year partnership with Thomas Cook would conclude at the end of the 2008/09 Premier League Season.
Thomas Cook has become a sponsor of the London 2012 Olympics. As one of the UK's biggest and most popular providers of package holidays, Thomas Cook has been appointed to provide "affordable and accessible" holidays and accommodation throughout the games. Thomas Cook's CEO commented: "More than a century after Thomas Cook escorted British travellers to the first modern Olympic Games in Athens in 1896, it is a privilege to once again have the chance to give British families and sports fans the opportunity to experience such a rare and special event in their own country".
Lloyds Banking Group
- 9%, Blackrock
Inc - 4.99%, AXA
SA - 4.8%, Massachusetts Financial Services Company - 4.65%, Standard Life
Investments - 4.14%
The remainder of the stock floats freely.
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
52% of the shares in the new company were held by the German mail order and department store corporation Arcandor
Arcandor
Arcandor AG is a holding company located in Essen, Germany that oversees companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was created in 1999 through the merger of Karstadt Warenhaus AG, which was founded in 1920, and Quelle...
(former owners of Thomas Cook AG) and 48% owned by the shareholders of MyTravel. On 9 June 2009 Arcandor filed for bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. The merger, which was backed by 99.9% of shareholders, took place through the formation of 'NewCo' which effectively purchased MyTravel and Thomas Cook and was then listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
under the name of Thomas Cook Group plc . It is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
It was announced on 8 October 2010 that Thomas Cook Group was to merge with The Co-operative Travel
The Co-operative Travel
The Co-operative Travel is the trading name of Co-op Group Travel 1 Ltd., a subsidiary of the Co-operative Group. The largest independent travel agent in the United Kingdom; it is a member of the Co-operative Travel Trading Group and is both ABTA and ATOL bonded...
to create the UK's largest travel network.
Thomas Cook AG
The company was founded by Thomas CookThomas Cook
Thomas Cook of Melbourne, Derbyshire, England founded the travel agency that is now Thomas Cook Group.- Early days :...
, a cabinet-maker, in 1841 to carry temperance
Temperance movement
A temperance movement is a social movement urging reduced use of alcoholic beverages. Temperance movements may criticize excessive alcohol use, promote complete abstinence , or pressure the government to enact anti-alcohol legislation or complete prohibition of alcohol.-Temperance movement by...
supporters by railway between the cities of Leicester
Leicester
Leicester is a city and unitary authority in the East Midlands of England, and the county town of Leicestershire. The city lies on the River Soar and at the edge of the National Forest...
, Nottingham
Nottingham
Nottingham is a city and unitary authority in the East Midlands of England. It is located in the ceremonial county of Nottinghamshire and represents one of eight members of the English Core Cities Group...
, Derby
Derby
Derby , is a city and unitary authority in the East Midlands region of England. It lies upon the banks of the River Derwent and is located in the south of the ceremonial county of Derbyshire. In the 2001 census, the population of the city was 233,700, whilst that of the Derby Urban Area was 229,407...
and Birmingham
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...
.
In 1851, the founder arranged transport to the Great Exhibition of 1851. He organised his first tours to Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
in 1855 and to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1865. In 1865, the founder's son John Mason Cook began working for the company full time. In 1871, he became a partner, and the name of the company was changed to Thomas Cook and Son.
In 1884, John Mason Cook attempted to relieve General Gordon
Charles George Gordon
Major-General Charles George Gordon, CB , known as "Chinese" Gordon, Gordon Pasha, and Gordon of Khartoum, was a British army officer and administrator....
from Khartoum
Khartoum
Khartoum is the capital and largest city of Sudan and of Khartoum State. It is located at the confluence of the White Nile flowing north from Lake Victoria, and the Blue Nile flowing west from Ethiopia. The location where the two Niles meet is known as "al-Mogran"...
.
In 1924, the company was renamed to Thomas Cook & Son Ltd., after acquiring a limited liability
Limited liability
Limited liability is a concept where by a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership with limited liability. If a company with limited liability is sued, then the plaintiffs are suing the company, not its...
status. In 1928, the business was sold to the Compagnie Internationale des Wagons-Lits et des Grandes Express Européens, operator of the Orient Express
Orient Express
The Orient Express is the name of a long-distance passenger train service originally operated by the Compagnie Internationale des Wagons-Lits. It ran from 1883 to 2009 and is not to be confused with the Venice-Simplon Orient Express train service, which continues to run.The route and rolling stock...
. In 1948, it was acquired by Britain's
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
mainline railway companies. It was then bought by a consortium of Midland Bank
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
, Trusthouse Forte and the Automobile Association
Automobile Association
Automobile Association may refer to:*Australian Automobile Association in Australia.*Automobile Association of South Africa*Canadian Automobile Association in Canada.*Dominion Automobile Association in Canada....
in 1972 and by WestLB
WestLB
WestLB AG is a European commercial bank based in Düsseldorf in Germany which is partly owned by the German state of North Rhine-Westphalia. The letters LB in the name stand for Landesbank. The Landesbanken are a group of state owned banks unique to Germany...
in 1995. In 1999, it merged with Carlson Leisure.
In 2000, the company sold off its worldwide foreign exchange business to Travelex to concentrate on tours and holidays.
After the market depression, particularly following the 2001 September 11 attacks, the company started a disinvestment
Disinvestment
Disinvestment, sometimes referred to as divestment, refers to the use of a concerted economic boycott, with specific emphasis on liquidating stock, to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change...
programme, disposing of subsidiaries and business ventures.
In 2002, the company was acquired by C&N Touristic AG, a German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
group, who in turn changed its own name to Thomas Cook AG.
On 21 December 2005, Thomas Cook AG sold off Thomas Cook International Markets, a venture which includes 60% of the stake in Thomas Cook India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
Ltd to Dubai Financial LLC, a part of the Dubai Investment Group
Dubai Group
Dubai Group is an investment company based in the United Arab Emirates, and a subsidiary of Dubai Holding. Originally founded in 2000 as The Investment Office, the company was renamed Dubai Group in 2005...
(DIG) which manages the financial and real estate interests of HH Sheikh Mohammed bin Rashid Al Maktoum
Mohammed bin Rashid Al Maktoum
Mohammed bin Rashid Al Maktoum , also Sheikh Mohammed, , is the Prime Minister and Vice President of the United Arab Emirates , and absolute monarch of Dubai.-Personal life and education:...
, ruler of Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
.
Then in 2006 Dubai Financial LLC acquired a license to use the Thomas Cook name in the Middle East. Thomas Cook Middle East consists of the Middle East region, which has experienced a boom in travel and tourism, especially in places like Dubai, Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
, Oman
Oman
Oman , officially called the Sultanate of Oman , is an Arab state in southwest Asia on the southeast coast of the Arabian Peninsula. It is bordered by the United Arab Emirates to the northwest, Saudi Arabia to the west, and Yemen to the southwest. The coast is formed by the Arabian Sea on the...
and so on.
Also in 2006 Thomas Cook Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
was sold to Transat A.T.
Air Transat
Air Transat is an airline based in Saint-Laurent, Montreal, Quebec, Canada, operating scheduled and charter flights, serving 60 destinations in 25 countries. The airline is owned and operated by Transat A.T. Inc. During the summer season its main destinations are Europe and in the winter season the...
marking Thomas Cook's exit from the North American market.
In 2006, Thomas Cook AG became wholly owned by KarstadtQuelle
KarstadtQuelle
Arcandor AG is a holding company located in Essen, Germany that oversees companies operating in the businesses of mail order and internet shopping, department stores and tourism services. It was created in 1999 through the merger of Karstadt Warenhaus AG, which was founded in 1920, and Quelle...
.
In July 2010, Thomas Cook Group bought German tourism company Öger Tours, which was owned by Vural Öger
Vural Öger
Vural Öger is a German politician of Turkish descent, and Member of the European Parliament with the Social Democratic Party of Germany, part of the Socialist Group and sits on the European Parliament's Committee on Foreign Affairs.He is a substitute for the Committee on Transport and Tourism, a...
.
On 22 November 2011, Thomas Cook shares lost about three quarters of their value on the London Stock Exchange after the company announced it was in talks with its banks about increasing borrowing by some £100 million but the shares recovered somewhat the following day. There were also reports that the company was planning to close 200 of its 1,200 travel agencies and foreign exchange offices.
MyTravel Group PLC
The company was founded by David Crossland in 1972 when he purchased a series of small travel agencies in LancashireLancashire
Lancashire is a non-metropolitan county of historic origin in the North West of England. It takes its name from the city of Lancaster, and is sometimes known as the County of Lancaster. Although Lancaster is still considered to be the county town, Lancashire County Council is based in Preston...
, United Kingdom. The company began operating package holidays and launched its own in-house charter airline operating under the Airtours brand in the early 1980s.
In 1996, Airtours purchased Scandinavian Leisure Group (SLG) including award winning tour operators such as Ving
Ving
Ving may refer to:*Ving , a vodka mix drink made with Jamaican Ting grapefruit soda*Ving Rhames , an American actor*Ving'hawe, an administrative ward in the Mpwapwa district of the Dodoma Region of Tanzania...
and airline Premiair
Premiair
Premiair is an Indonesian Air Charter Operator. The company is headquartered at Halim Perdanakusuma Airport in Jakarta.In 2008, Premiair was upgraded to Indonesia's top safety rank.-Fleet:...
.
In the late 1990s, Airtours formed the North American Leisure Group, which operated several airlines and cruise lines from its offices in Canada and California, including Sunquest Air, Sunquest West and several others.
The company ran into financial difficulties in 2004 and needed to implement a debt-for-equity swap in order to restore its profitability.
Post-merger
The merger between Thomas Cook and MyTravel was completed in June 2007.On 6 March 2008, the company bought back its licence to operate the Thomas Cook Brand in the Middle East and Asia from The Dubai Investment Group for an amount estimated to be around 249 million euros.
In April 2008 Thomas Cook bought the luxury travel firm Elegant Resorts for an undisclosed sum. Elegant Resorts was sold by the founders Geoff Moss and Barbara Catchpole.
The company took over Preston-based Gold Medal International, owner of NetFlights, in a deal worth £87 million in December 2008.
On 8 March 2009 Thomas Cook signed a deal with Octopus Media Technology
Octopus Media Technology
Octopus Media Technology is a London based company that provides an Online Video Platform for professional use. It was Founded in 2006 by Andrew Eborn who now acts as CEO, with the aim of improving the quality of streaming video, available to commercial companies...
to host, upload, and provide an online video player for Thomas Cook TV.
In Spring 2009 Thomas Cook UK signed a deal with International Entertainment Supplier The E3 Group, to exclusively supply entertainment to the group.
It was announced on 8 October 2010 that Thomas Cook Group was to merge with The Co-operative Travel
The Co-operative Travel
The Co-operative Travel is the trading name of Co-op Group Travel 1 Ltd., a subsidiary of the Co-operative Group. The largest independent travel agent in the United Kingdom; it is a member of the Co-operative Travel Trading Group and is both ABTA and ATOL bonded...
to create the UK's largest travel network. The deal will see the new network 70%-owned by Thomas Cook and 30%-owned by Co-operative Travel.
Operations
Condor Airlines
Condor Flugdienst GmbH, usually shortened to Condor, is an airline based in Germany, operating scheduled leisure flights to the Mediterranean, Asia, Africa, North America and the Caribbean as part of Thomas Cook Group...
, Ving, Direct Holidays and My Sunquest.
The company operates in five main divisions, UK, Northern Europe, North America, continental Europe, and German Airlines.
With a joint fleet, at merger, of 97 aircraft, 2,926 stores, 32,722 employees, and over 19.1 million annual customers, the new group became the second largest travel company in Europe and the UK, behind TUI Travel
TUI Travel
TUI Travel PLC is a FTSE 250 international leisure travel group listed on the London Stock Exchange. It was formed on 3 September 2007 by the merger of First Choice Holidays PLC and the Tourism Division of TUI AG, which owns 55.09% of the company, operating in 180 countries and serving 30m...
, and the largest in the Scandinavian, French, Dutch, German and North American markets.
Sponsorship
Thomas Cook is a main sponsor of Manchester CityManchester City F.C.
Manchester City Football Club is an English Premier League football club based in Manchester. Founded in 1880 as St. Mark's , they became Ardwick Association Football Club in 1887 and Manchester City in 1894...
and Peterborough United football clubs. On 22May 2009, Manchester City announced that the six-year partnership with Thomas Cook would conclude at the end of the 2008/09 Premier League Season.
Thomas Cook has become a sponsor of the London 2012 Olympics. As one of the UK's biggest and most popular providers of package holidays, Thomas Cook has been appointed to provide "affordable and accessible" holidays and accommodation throughout the games. Thomas Cook's CEO commented: "More than a century after Thomas Cook escorted British travellers to the first modern Olympic Games in Athens in 1896, it is a privilege to once again have the chance to give British families and sports fans the opportunity to experience such a rare and special event in their own country".
Ownership
Thomas Cook plc's 5 major shareholders as of August 2011.Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
- 9%, Blackrock
Blackrock
Blackrock is a suburb of Dublin in County Dun Laoghaire-Rathdown, Ireland. It is northwest of Dún Laoghaire.-Location and access:Blackrock covers a large but not precisely defined area, rising from sea level on the coast to at White's Cross on the N11 national primary road. Blackrock is bordered...
Inc - 4.99%, AXA
AXA
AXA S.A. is a French global insurance group headquartered in the 8th arrondissement of Paris. AXA is a conglomerate of independently run businesses, operated according to the laws and regulations of many different countries. The AXA group of companies engage in life, health and other forms of...
SA - 4.8%, Massachusetts Financial Services Company - 4.65%, Standard Life
Standard Life
Standard Life plc is a long term savings and investment business, with headquarters in Edinburgh and operations across the globe. It has 1.5 million shareholders in more than 50 countries and over 6 million customers.-History:...
Investments - 4.14%
The remainder of the stock floats freely.