Collapse Of Thomas Cook UK Has No Affect On Thomas Cook (India)

Collapse Of Thomas Cook UK Has No Affect On Thomas Cook (India)

By ITA

The collapse of the 178 year old British tour operating firm Thomas Cook will have no impact on the Thomas Cook (India) Group.

This is because the Indian namesake of the British tour operator is an entirely separate entity since August 2012.

It was acquired by Fairfax Financial Holdings (Fairfax which is a Canadian multinational investment company. Therefore the closure of the iconic travel and tour operating company will not result in any impact in the business and operations of Thomas Cook (India).  

Currently, there is no stake of Thomas Cook UK in Thomas Cook (India) Limited as the entire ownership of the later is with Fairfax.

Following the news of the collapse of Thomas Cook UK, a statement from Thomas Cook (India) said: “The last seven years have been fruitful as we continue to grow and build our legacy as an independent entity after Fairfax Financial Holdings acquired a 77 per cent stake in Thomas Cook India Ltd. (TCIL) in 2012.”

Thomas Cook India also said that as of June 30, 2019, the cash and bank deposits balances of Thomas Cook (India) was at Rs 1,389 crore and it is adebt free company.  The average annual free cash flow of the company is about Rs. 250 crore, TCIL said.

The closure of its British namesake company has not impacted TCIL and it was business as usual on Monday. The company registered a 21 per cent growth in demand for the Durga Puja festive season primarily because of demand for its services from West Bengal and the surrounding source markets. The company also said that it has seen a more than 20 per cent demand for its services form travelers across Andamans, Kerala, and Himachal Pradesh, among other regions of India.

(Adapted from The Hindu Business Line)

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