Neilson/Thomas cook

Jastem found something about travel insurance on MoneySavingExpert.com for the travel insurance thread and when I followed the link there was also a load about Thomas Cook and what you are and are not covered for if they go bust after you've booked a holiday with them:

http://www.moneysavingexpert.com/news/travel/2011/11/qa-how-safe-is-thomas-cook

Here is a small extract of what it said (I went to a lecture recently about archiving websites which explained how loads of really interesting material is lost and why links stop working):

I've booked a Thomas Cook flight or hotel outside a package. Am I covered?

Hotel bookings. You are not covered by Atol, Abta or package holiday protection if Thomas Cook goes bust. You may have protection if you paid on plastic, see the 'Did you pay on credit or debit card?' section below.

Flights booked online. You are not covered by Atol, Abta or package holiday protection if Thomas Cook goes bust. You may have protection if you paid on plastic, see the 'Did you pay on credit or debit card?' section below.

Flights booked at a Thomas Cook shop. These will be Atol-protected. If Thomas Cook goes under, you can continue your holiday if abroad or get a refund if still in the UK. Ally

Dave Mac wrote:Note that Thos Cook are not loss making, they made £124m Operating Profit in year 2010.

They reported a pre tax loss back in March of -£269M

andyhull wrote:

Dave Mac wrote:Note that Thos Cook are not loss making, they made £124m Operating Profit in year 2010.

They reported a pre tax loss back in March of -£269M

OP is not the same as PBTI.

Loss is a loss, which is why they are in the pooh.

Tony_H wrote:Loss is a loss, which is why they are in the pooh.

May I remind you that your favourite airline was in much deeper pooh, but they changed CEOs, and reverted to profitability.

The point about examining Operating profit, is that it allows you to look at the health of the business ~ and to separate out the reasons for it's adverse situation. It is much easier to identify basket cases.

TC may end up going AWOL; equally, if they get their cost base right, they may well reverse their fortunes. They will need to generate some cash, and they have assets to do that, and they will need to double their profit ~ not easy in a falling market.

andyhull wrote:

Dave Mac wrote:Note that Thos Cook are not loss making, they made £124m Operating Profit in year 2010.

They reported a pre tax loss back in March of -£269M

This was just before they announced a further warning and the CEO was replaced. Since then they've re-financed already, and have gone back for a 2nd package; so I am lead to believe.

Profit wibble all you like, they are in debt to the tune of £1billion, and that is the brown stuff alright.

BTW, not my favourite airline, never have been.