Thomas Cook AG (former)

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For other uses, see Thomas Cook (disambiguation).

This article contains historical information about Thomas Cook AG until its merger with My Travel - for the new company see - Thomas Cook Group

Thomas Cook AG was the parent company of Thomas Cook, Condor Airlines and other such subsidiaries until 12 February 2007 when Thomas Cook AG announced that it had merged with MyTravel Group PLC. The new combined company was named Thomas Cook Group plc.

It was originally incorporated on November 1, 1997 as "C&N Touristic AG" but the name was changed following the 2002 acquisition of Thomas Cook. The group is jointly owned by Lufthansa and Karstadt, However Karstadt took control of the company two days before Christmas 2006 by buying the half-share owned by Lufthansa, the German airline. Karstadt paid €800m (£540m), though Lufthansa will for at least the next two years retain a stake in Condor Airlines, Thomas Cook's in-house airline in Germany.

[edit] Worldwide

Thomas Cook Worldwide had 5 wholly owned subsidiaries Thomas Cook UK, Thomas Cook Netherlands, Thomas Cook France, Thomas Cook Belgium, Thomas Cook Destinations and majority holdings in Condor Flugdienst and TC Touristik. Thomas Cook used to have a franchise agreement in the Middle East - Specifically in the United Arab Emirates through a licensee agreement it had with a local group called the Al Rostamani Group. The venture was terminated after The Thomas Cook brand name was sold to Dubai Holdings which plans to use it in the Middle East.

In the United Kingdom, Thomas Cook conformed to the model of a 'vertically integrated travel company' operating an airline, a retail arm and also a tour operator. This tour operator division was previously known as Thomas Cook Tour Operations but in early 2006 was restructured as the 'Holidays Division', incorporating the previously separate Thomas Cook Signature brand alongside the Thomas Cook, JMC and Sunset brands. The 'Specialist Products' division included Uptrips (including the Club 18-30 brand), Style, Neilson Active Holidays and Sunworld Ireland.

In 1999, Thomas Cook AG sold off its worldwide Foreign Exchange business to Travelex to concentrate only on tours and holidays. After the market depression, particularly following September 11, 2001 attacks, Thomas Cook AG had started a disinvestment programme by disposing off some of its subsidiaries and business ventures to follow a highly flexible business model and become an asset light company with minimum capital tie up. The business focused on Europe for the sale of package holidays and tailor-made holidays for customers specific requirements.

On December 21, 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. Thomas Cook India, a profitable venture, which offered a broad band of services like package tours, currency exchange and travel insurance besides hotel and flight reservations. Thomas Cook India had been in existence for 124 years and operated 60 offices across various locations. Thomas Cook India had branches in Sri Lanka and Mauritius and reported sales of €23.3 million. After the take over by Dubai Financial LLC, Thomas Cook India took over LKP forex, one of India's leading foreign exchange houses and The Travel Corporation of India (TCI) India's leading travel and tourism corporation.

Following this, Thomas Cook Overseas Limited, a wholly owned subsidiary of Thomas Cook UK was sold off, this time again to Dubai Financial LLC. (Thomas Cook Overseas Ltd consisted of 19 travel agencies, 22 currency exchanges in Egypt with 371 employees and during the 2005 business year had a turnover of just under €6 million).

Thomas Cook AG soon entered the market again, this time to sell off two more of its subsidiaries - Thomas Cook Thailand and Thomas Cook Middle East both to Dubai Financial LLC. Thomas Cook Middle East consists of the Middle East region, which experienced a boom in travel and tourism, especially in places like Dubai, Qatar, Oman and so on. Thomas Cook Lebanon S.A.L. had started in June 2004 providing travel and financial services. The company also operates a travel agency and a currency exchange in Beirut. Dubai Financials planned an aggressive expansion strategy for its newly acquired arms.

Thomas Cook Canada was sold to Transat A.T in 2006, marking Thomas Cooks exit from the North American market in terms of its own retailer.

On 12 February 2007, Thomas Cook AG announced that they had agreed terms on a merger with MyTravel Group PLC. The merger was subject to shareholders of MyTravel giving their approval at an Extraordinary General Meeting. The parent company of the enlarged group was named Thomas Cook Group plc with its headquarters in the UK and listed in London.[1]

[edit] Companies

The companies in Thomas Cook AG include:

Clearance by the European Competition Commission was granted on 4 May for the merger of Thomas Cook and Mytravel forming the new Thomas Cook Group PLC (TCG) www.mytravelgroup.com

[edit] References

  1. ^ MyTravel Group plc (2007-02-12). "MERGER OF MYTRAVEL GROUP PLC AND THOMAS COOK AG TO CREATE A LEADING INTERNATIONAL LEISURE TRAVEL COMPANY". Press release. Retrieved on 2007-02-12.