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?
Spies, Ving, Tjaereborg are very strong brands in Scandinavia, at least as strong as Condor in Germany, with their own history going back to the 50'es.
They were bought into TC one by one, and it would have been stupid to rename them. Thomas Cook or Condor is in Scandinavia just random mostly unknown words written on some airliners which serve Spies, Ving and Tjaereborg customers.
Bought into TC. Yeah, or bought for own money. Now they say on TV news that for instance the Spies subsidiary has lent out roughly $75m to TC Holding - to keep TC running just a little longer. If that money, or most of that money, is lost (which is likely the case), then Spies' bottom line is today some $50m into the red. That is serious money for such a small company, even if they currently operate profitably.
Where is that debt? Unpaid hotels, fuel, airport fees? Loans in Scandinavian banks? Or what? Probably all of that and much more. Banks keep them floating right now. For how long? Nobody will buy a company with such debt. There is a real risk that TC Holding will pull at least part of the healthy subsidiaries down in the ditch - like a domino effect.