Mantegazza: Cosmosair is weakest link

Operator seeks new ways to strengthen its beach holidays operation

Mantegazza: Cosmosair is weakest link

Shaping the future: Mantegazza would not rule out job cuts

Report by JULIET DENNIS

COSMOS has admitted its beach holidays operation Cosmosair is its weakest link as rumours return that the company is up for sale.

Chief executive Fabio Mantegazza told Travel Weekly the company was discussing ways to strengthen Cosmosair, which uses sister company Monarch for 60% of its flights.

It could mean specialising in certain destinations or airports.

“Cosmosair cannot continue to pretend it is able to compete on every front with all the operators that are vertically integrated,” he said.

“If it was just a stand-alone operator, it would be a lot easier, but there is the question of supporting Monarch – that’s the reality of the business. We cannot say we will not specialise within resorts.”

Monarch has put a freeze on non-essential spending since the September 11 attacks, but a spokeswoman said no tour operators had changed their contracts for winter or summer 2002 charters. She added bookings for the scheduled Monarch Crown Service were strong.

Rumours have again surfaced that Cosmos is up for sale with one source claiming one of the big four vertically integrated operators made an unsuccessful bid to buy the company in the last month.

“The bid by one of the Big Four was rejected, but venture capitalists are also interested,” said the source.

Mantegazza, who denied managing director Nigel Wright’s future was any less secure than other staff members, did not dispute sales were down by 14% this summer.

“We’re not taking away the same number of people as last year. A drop in sales was anticipated in the business plan, partly because we discounted less.”

He admitted the operator was likely to reduce capacity next year by up to 20% and that the US attacks meant Cosmos faces a tougher market.

Mantegazza put his closer involvement in the running of the business down to “difficult times”. “We have been looking at ways to cut costs for a long time now. I can’t guarantee jobs will not be lost.

“I am not worried about the future, it is a question of shaping it. The family is wealthy enough to withstand any crisis in the group,” he said.

He admitted operators had put in bids to buy Cosmos in the past but denied it was for sale.