The promotion of Manny Fontenla-Novoa to Thomas Cook AG chairman and group chief executive has fuelled speculation that Thomas Cook could acquire First Choice’s mainstream business.
Fontenla-Novoa – who began at Thomas Cook in a basement print room aged just 18 – admitted: “The big four can only handle the future as they are with difficulty. If you look at recent performances, all the signs for consolidation are there but I cannot say how quickly it will happen.
“The vertically integrated model is still hugely profitable; everyone’s talking about the death of the package holiday but it remains profitable.”
Fontenla-Novoa pledged the UK business, which employes 11,000 of the group’s 23,000 staff, would not suffer despite his expanded role that now sees him in charge of 33 tour operators and 2,400 agencies in France, Germany, the US and Egypt.
He said the UK board has been strengthened recently by three appointments in sales and distribution, financial services and marketing.
Fontenla-Novoa believes he can replicate in Europe the ‘holy grail’ 5% margin he has achieved in the UK, although he conceded it would not happen overnight.
He said making job cuts had been the worst part of heading the UK operation, while he was most pleased of achieving good profitability and turning Thomas Cook into a business fit for the future.
“When I took over we had no confidence and they talked of Thomas Cook as a sleeping giant, but not anymore.”