Wholesalers

Webjet hit hard by Thomas Cook’s demise, as Qantas called on for support

Huntley Mitchell

Huntley Mitchell

Webjet has revealed exactly what impact the collapse of Thomas Cook will have on the company, and it’s not pretty.

In a statement to shareholders yesterday, Webjet – of which Thomas Cook is a customer via its WebBeds B2B business – said it will lose between $150 million and $200 million in total transaction revenue that would have otherwise been realised.

Furthermore, Thomas Cook owed Webjet approximately €27 million ($43.9 million) in outstanding receivables, which the online travel giant said will be treated as a one-off expense.

In announcing its FY19 results last month, Webjet indicated that the earnings of its WebBeds business would grow by $27 million to $33 million in FY20 from a range of drivers, including Thomas Cook.

“The impact of Thomas Cook’s collapse is expected to reduce this expectation by up to $7 million in EBITDA,” the company said.

Meanwhile, Qantas has been called upon to provide support for customers affected by Thomas Cook’s demise, which is estimated to be 600,000. Some have been reportedly locked out of hotel rooms and held hostage by resorts seeking compensation.

“We have been approached for support and we’re assessing what help we may be able to provide,” a Qantas spokesperson told Travel Weekly.

The multimillion-dollar bonuses that were paid to Thomas Cook executives are also in the limelight, with The Telegraph reporting that they raked in more than £20 million ($36 million) over the past five years despite long-held fears about the company’s future.

Peter Fankhauser has been payed £8.3 million ($15.3 million) since becoming CEO in 2014, including a £2.9 million ($5.3 million) bonus in 2015.

According to The Telegraph, chief financial officers Michael Healy and Bill Scott have together been paid around £7 million ($12.9 million) since 2014, while the company’s non-executive directors were payed more than £4 million ($7.4 million) during this time.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Tourism

The Travel Industry Hub creates online community

Are you sick of attending webinars where everyone leaves straight after they end, leaving no chance to network and chat? Well, TTIH is doing something about it.

Share

CommentComments

Aviation

Brisbane Airport achieves global COVID-safe accreditation

While the health and safety protocols at Brisbane’s quarantine hotels are being questioned, at least the airport’s got it together.

Share

CommentComments

Hotels

Nail-biting images emerge of youths taking selfies on Sydney hotel ledge

Bloody kids these days and their death-defying selfies. Back in our day, the cameras were so big that we’d be lucky to get one up a staircase, let alone onto the ledge of a building.

Share

CommentComments

Destinations

South Australia changes border restrictions for travellers from NSW

by Huntley Mitchell

Finding it hard to follow of all the constantly-changing domestic border restrictions? Travel Weekly has done some of the deciphering for you here.

Share

CommentComments

Cruise

Royal Caribbean extends cruise suspension, announces US$40m funding pool for agents

Despite what the headline suggests, the cruise group isn’t offering agents to take a dip in a literal pool of cash, much to our disappointment.

Share

CommentComments

Wholesalers

The Travel Corporation’s Aussie CEO to depart as part of major exec changes

Here’s some very big news right here for your Friday, with TTC’s Fiona Dalton set to fly the coop after just three months in the top role.

Share

CommentComments

Aviation

Indonesian socialite books out entire flight to Bali to avoid COVID-19

The grandson of a pharmaceutical tycoon reckons booking out an entire commercial flight is cheaper than chartering a private jet.

Share

CommentComments

Hotels

Opening date revealed for W Melbourne

Have you been waiting with bated breath for Marriott to reveal the opening date for its new Melbourne property? Well, you can now rid yourself of all that anxiety.

Share

CommentComments

Travel Agents

CTM boss in legal stoush with Brisbane City Council over $20 million property plan

Jamie Pherous has become entangled in a legal battle with the council over a swimming pool he wants to build at his new property on Brisbane River.

Share

CommentComments

Wholesalers

Get in quick! Trafalgar launches ‘Break Out & Break Free’ sale

It appears 2021 is the year of the sale, with Trafalgar joining the already long list of travel brands spruiking their discounted wares.

Share

CommentComments

Aviation

Unions take Qantas to High Court over JobKeeper “wage theft”

by Ali Coulton

Having lost on appeal in the Federal Court late last year, the unions are now taking their JobKeeper fight against Qantas to the High Court.

Share

CommentComments

Cruise

Carnival to ditch 19 ships, as company posts $2.8 billion quarterly loss

Carnival Corporation has added another ship to the pile of vessels that it will offload in order to stay afloat beyond the COVID-19 pandemic.

Share

CommentComments