News

EC asks for AITO view over Thomas Cook/Carlson deal


THE European Commission has turned to the Association of Independent Tour Operators for guidance as it continues to probe the merger of Thomas Cook and Carlson.



AITO was approached by the merger task force to comment on the plans and suggest how the alliance could damage the industry.



The response will be analysed by the EU before it makes its ruling.



“We were asked for our comments and have told the EU we want it stopped,” said AITO chairman Paul Chandler. “We are prepared to travel to Brussels if it means getting our views over in a more forceful way. This merger simply has to be anti-competitive.”



The EU has until March 8 to give Thomas Cook and Carlson an indication and a further two weeks to make a final judgement.



In a three-page submission, AITO said the merger would lead to the vertically integrated companies strengthening their stranglehold on the charter airlines.



“More than 90% of charter capacity is in the hands of six operators,” said Chandler. “It will be five if this merger goes ahead. This would be totally unacceptable.



“The multiples also have 75% share of the market which would rise further with this merger because of directional selling.”



A Thomas Cook spokeswoman said: “We were not aware of the letter but are not surprised. Anyone is within their rights to give their views.”



Meanwhile, an answer is expected this week to a parliamentary question on transparency tabled by Chandler’s MP Keith Darvill.



n Carlson Leisure Group’s national head of buying Cheryl Powell has left the company as speculation mounts that its UK retail team will be merged with Thomas Cook (Travel WeeklyFebruary 3).



Powell has taken up the position of national commercial manager at Holiday Hypermarkets. She will not be replaced by Carlson.


Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.