| Journal: TWUK | Section: |
| Title: | Issue Date: 17/07/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Loss-making operations in France and Belgium deemed ‘non-viable’
AROUND 100 jobs are expected to be axed as Airtours looks to close its loss-making operations in France and Belgium.Group managing director Tim Byrne said the businesses were too small to be viable and will lose £15m this year.
“In Belgium for example, around 80% of sales are in summer with the majority of holidaymakers travelling in June,” said Byrne.
“This makes it very hard to fill aircraft seats and hotel beds in other months.
“You have to work extremely hard to make £2m which is just not worth it.
“We acquired the French and Belgium businesses when we bought Cresta and Bridge and at the time we said we would give them two years. We have done that.”
He said consultation was taking place with staff.
“The share price would have remained higher had we not reshaped the businesses and kept the loss-making operations,” said Byrne.
“But over time, the City would have asked where the growth was. We wanted to take more of a medium to long-term decision.”
However, Airtours’ Dutch operation will remain and come under the control of the Scandinavian Leisure Group.
Byrne said the move will lead to cost savings.
Costa Cruises is also suffering, he said, although underlying trading was strong.
“Profits translated into sterling will be adversely affected by the weakening of the euro,” he said. “We expect our recorded share of Costa’s profits to be below last year’s.”
Costa Cruises: profits are expected to be below last year’s level