Merger of 2 large travel companies

Thomas Cook of Germany and MyTravel of Britain have merged in a bid to create a European competitor in the market.

The merger will see the name of the company remain as Thomas Cook. Thomas Cook is well known brand that has been around since 1841. The German retailer will hold 52% of the merged companies.

Thomas Cook will become the Thomas Cook Group and is based in London. The new company is said to be listed on London’s Stock Exchange.

First Choice Holidays will not be persued by MyTravel at this stage. Work has already begun to merge the companies inventory and internet services.

It’s been suggested that the company will be able to save £75 million from the deal.

Thomas Cook started in Loughborough selling rail excursions. The company has moved along way since those days and now provides 1000’s of destinations across the world. It also has over 2 dozen planes. At the end of the year it’s profits were reported with sales of €7.78 billion.

With a fleet of 31 planes MyTravel was started in 1972. The company controls many brands including Airtours, Going Places, and Direct Holidays. It’s reported sales in were 2.8 billion.

The merger will be huge but unfortunately means there would be job cuts among combined employees totalling 32 thousand.

The merger isn’t definite yet and the final decision will be made from a combination of the clearances, shareholders and other purchases.

www.thomascook.com