Thomas Cook predicts collapse of 15 travel operators

Thomas Cook’s chief executive is predicting that as many as 15 British travel companies face collapse in the coming three months.

Manny Fontenla-Novoa, the Thomas Cook CEO, is saying that the January-March period is a time when cash flow is at its lowest point in the year, and that those companies without adequate banking facilities will be in a struggle to survive.

According to figures released by the Civil Aviation Authority (CAA), 33 travel operators failed in 2008, which is eight more than failed in 2007. In addition, 26 airlines collapsed.

“If companies can survive the next three months they should be fine, but this period is crucial,” Fontenla-Novoa said.

The travel executive added that a number of airlines are also in danger of failing during the economic downturn, but did not elaborate on which ones he thought were most at risk.

Countries hit hardest by the weakening pound have been Greece and Spain, as the pound and euro have approached parity. Countries outside the euro zone have seen a sharp rise in the number of visitors from the UK, with Thomas Cook reporting bookings to destinations such as Turkey being up by 20 per cent over last year.

Thanks to www.telegraph.co.uk for the above quotes, for more information on this article please visit their website.

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