Thomas Cook has enlisted three banks to sell their Aircraft to overcome the group losses racked up in 2018, with the net debt at £389m.
According to Reuters, the company has enlisted Credit Suisse, Morgan Stanley and Bank of America Merrill Lynch to explore the possible sale of its airline business.
The banks have valued, the Thomas Cook’s Airline unit around 500-600 million pounds, and said “Lufthansa, Ryanair and easyJet were all vying for bits of the airline business, but that no one wanted the whole unit, and that Thomas Cook had an ageing fleet which would need a massive investment programme to replace it.”
Airline operates a fleet of 103 aircraft, and was able to grow its overall capacity in 2018 across Europe, after the collapse of some regional airlines including Monarch and Air Berlin.
Sale of its profit making unit will allow the group to concentrate on its high-margin hotel, currency exchange and tour operating business and provide greater financial flexibility.