London - Arabstoday
Thomas Cook’s new chief executive said technology would be the salvation of the struggling British tour operator and gave herself nine months to deliver a turnaround plan to end over a year of poor performance. The company posted an underlying operating loss of 26.5 million pounds ($41.3 million) in the three months ended June, versus a profit of 20.1 million pounds in the same period last year despite a lift in foreign bookings from Britons exasperated with rainy weather at home. Harriet Green, who joined the 171-year-old company from electronic parts distributor Premier Farrell in July, told reporters that she would be able to “bring a fresh pair of eyes” to existing industry problems. “I don’t think moving from one industry (to another) is so much of a challenge. There are many things that are actually very similar and in my view of business, all roads ultimately lead to technology,” she said. Thomas Cook has been hit hard by tough trading conditions, particularly in Britain where its core customer base of families with young children is suffering in the economic downturn. It has also been affected by unrest in popular destinations such as Egypt, Tunisia and Morocco. In May it reported half-year pretax loss of 328.3 million pounds and completed the sale and leaseback of 19 of its planes as it struggled to find cash. “In our view they (new management) face a very difficult turnaround task. We expect early views from the new team in November and a detailed plan to be announced in the Spring,” Numis analysts said. Thomas Cook said foreign holiday bookings had picked up in recent weeks after subdued demand in April and May, as the sodden European summer drove rain-weary Britons, Germans and Russians to seek the sun in Greece and Tunisia. From:Gulftoday