Elshad wrote:What was the reason for Thomas Cook (Airlines) having so many subsidiaries like Scandinavia, Balearics, Belgium etc.? I understand the need for Condor to be separate as it has its own history but the rest seem like paper exercises / accounting tricks. Why didn’t they merge them?
One very strong reason, if we're solely talking about the airlines and not the package holiday brands that supplied most of the airline passengers, is traffic rights. As long as you only want to take people to destinations within the European Common Aviation Area, or to countries that have openskies agreements with the EU, then the entire European operation could be run by one airline. As soon as you add countries outside that list, you're dependent on the terms of the bilateral air service agreements between the countries at each end of the journey. Many of these still specify that the flight must be operated by airlines registered in one of the two countries involved. Now all the bilaterals involving any of the Scandanavian countries have always permitted airlines and aircraft from Norway, Sweden and Denmark to be considered as registered in all of them, this was negotiated decades ago because of the way SAS is structured.
Thomas Cook Belgium stopped flying 2 years ago, and operations were sold to Brussels Airlines, which of course already had the necessary nationality for bilaterals.