The collapse of the world’s largest and oldest travel firm Thomas Cook, resulted in bad news for Thomas Cook India.
The Indian unit of Thomas Cook says that the collapse of the UK company will not affect its business and operations, however the use of the twin name has resulted in bad branding for the unit.
The company in a statement said: “Thomas Cook PLC (UK) has no relationship with Thomas Cook India as we were acquired by Canada based Fairfax Financial Holdings (Fairfax) in 2012. We are completely independent of Thomas Cook UK & hence the news of their situation does not impact us. Please be reassured that all your bookings and transactions will continue to be smooth and we look forward to having you enjoy your trip with Thomas Cook India.”
The negative public image may force it to change rebrand itself and maybe also change its name.
Madhavan Menon, chairman and managing director of Thomas Cook India said that the company has the right to use the brand name ‘Thomas Cook ‘ till 2024, but it could review the same in coming days.
Thomas Cook (India) Ltd was acquired by Fairfax Financial Holdings after a 77 per cent stake sale in 2012 by Thomas Cook UK. The transfer to Fairfax dissolved Thomas Cook UK’s stake in Thomas Cook (India) Ltd.
Currently Fairbridge Capital (Mauritius) Limited – a Fairfax company owns nearly 67 per cent stake in the company while the rest is held by the public. The Thomas Cook India Ltd is debt-free. The group generates an average annual free cash flow of around Rs. 250 crores.
Source : Various