Holidays firm Thomas Cook said on Wednesday it was managing to hold onto market share, rebuffing claims by TUI Travel that it has been benefiting from its arch rival's financial difficulties. The British firm, which secured a rescue package from lenders last November, said it continued to be adversely impacted by economic uncertainty across Europe and political upheaval in the Middle East and North Africa and expects 2012 to be challenging.
Europe's second biggest travel firm by sales also said it planned to sell its 77% stake in Thomas Cook India as it looks to bring down its debt of 890 million pounds. Shares in Thomas Cook India rose by 20 percent to Rs53.85 ($1.09) in Mumbai following the news, valuing Thomas Cook's stake at around $180 million. Shares in Thomas Cook Plc were up 3.9 percent to 13.5 pence at 0850 GMT. Thomas Cook's future has been in question since it asked lenders to come to its rescue twice in five weeks, sending its shares into freefall, after it warned of a possible debt default. Thomas Cook issued three profit warnings last year, culminating in the departure of Chief Executive Manny Fontenla-Novoa in August. It has been hit hard by tough trading conditions, especially in Britain, where its core customers base of families with young children has been particularly affected by tough economic conditions. It has also been affected by unrest in popular destinations such as Egypt, Morocco and Tunisia. Weihagen said the company expected to appoint a new chief executive by the end of March. Thomas Cook said it made a loss of 91 million pounds ($144 million) in the last three months of 2011, it fiscal first quarter, compared with a loss of 37 million pounds the year before. Tour operators normally make a loss in the half year that doesn't include the summer.
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