MYTRAVEL ‘GUARANTEES’ JOBS

MYTRAVEL has issued a memo to shop staff reassuring them their jobs are safe as fears continue over the group’s fate.

The news comes a week before MyTravel’s full-year results and an expected statement to the City as to what direction the operator will take in light of its financial troubles.

The memo also coincided with unofficial news MyTravel had taken payment for two-thirds of its deposits by last Friday’s deadline.

The decision to write directly to MyTravel staff is thought to have been prompted by fears over job security following continued speculation over the group’s future.

The leaked document reads: “We do not foresee any reduction whatsoever in the number of our sales staff in the UK. We regard our frontline selling staff as the most important people in our organisation and you make a massive contribution to our success. Your performance in all our distribution channels, since the start of August right up to yesterday’s bookings, has been absolutely terrific and we cannot thank you enough.”

The news came as John Boyle expressed an interest in buying back Direct Holidays, which he sold to MyTravel for £80.7 million in 1998.

However, it is unlikely the company would be sold as it is profitable.

An analyst added: “Direct Holidays is so interwoven with Airtours it would be virtually impossible to separate it out. Plus, why sell it if it’s profitable?”

Speculation is also rife that MyTravel’s banks were looking to appoint their own accountants to double check its books. One analyst said: “In this sort of situation it would not be unusual for the banks to appoint their own experts to look into the situation.”

PricewaterhouseCoopers and KPMG both denied any involvement.

Meanwhile, Thomas Cook confirmed its credit insurer Euler had withdrawn cover for payments owed by MyTravel to Thomas Cook for sales made through its Going Places and Travelworld network.

This has forced MyTravel to settle debts of tens of thousands of pounds with Thomas Cook on a daily basis, although this will have less impact as November and December are quiet for bookings.

First Choice said it is reviewing the situation, despite speculation it has made its payment dates more frequent.

The Financial Services Authority confirmed it is monitoring MyTravel and will consider if investors were kept fully informed of the company’s finances. A spokesman said: “We’re not interested in accounting irregularities or black holes. We just look at what they disclosed to investors.”