| Journal: TWUK | Section: |
| Title: | Issue Date: 14/08/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Airtours sells properties to raise £250m
AIRTOURS is to raise £250 million by selling hotels after admitting it is reliant on the UK to save its profits for the year.As the operator revealed pre-tax losses of £74.6 million for the last nine months against £7million last year, finance director David Jardine said it will sell and lease back around 20 properties in its Scandinavian Leisure Group.
The cash will offset restructuring costs in its Europe and North American businesses.
Airtours also said it has abandoned takeover talks with German company LTU after last month’s profits warning.
“We are losing money through FTi and LTU is also losing money,” said Jardine. “A commercial alliance with the airline is still a possibility.”
He admitted it was relying on the UK to perform well this year and said bookings to the end of June were 16% up.
Capacity has been cut by FTi which is expected to have losses of £85 million this year. Jardine said buying the last shares in FTi, expected to get clearance this month, will enable it to cut losses by 50% next year and break even in 2002.