Thomas Cook Group plc Statement

Holiday House, Sandbrook Park

Thomas Cook Group plc Proposals for Integration of its UK and Ireland Business

Thomas Cook Group plc today, Tuesday 26 July, announced its proposed UK and Ireland location, retail and branding strategies. These plans are a key step in the integration of the former MyTravel and Thomas Cook businesses, which merged on 19 June 2007, contributing to the achievement of synergies of at least £95M (140M Euros).

Under the proposals announced today, the Group's divisional head office would be in Peterborough, with 6 UK sites to close.

The retail network is currently being reviewed with a view to reducing the network by 150 stores to around 800 stores.

It is proposed that the main retail brand would be Thomas Cook, with the Going Places brand retained in towns that will have more than one store.

The company expects that if the proposals go ahead, an estimated 2500-2800 roles will ultimately be affected.

The Group’s key holiday brands will include, Airtours, Direct Holidays, Manos, Panorama, Sunset, and Thomas Cook, as well as specialist brands.

The combined aircraft fleet will operate under the brand of Thomas Cook Airlines.

The integration process is expected to involve the closure of six sites and a number of stores, the Group has stressed to employees that where possible redeployment opportunities will be offered to all affected staff.

Manny Fontenla-Nova, Joint Chief Executive of Thomas Cook Group plc said: “Today’s announcement is about a significant UK reorganisation. As many as possible of those who are affected by today’s news will be offered the opportunity of redeployment within the business, we are absolutely committed to retaining the skills and experience of all our workforce. However, we appreciate that some employees will either not want to take up our offer of redeployment or will not be able to do so. For those employees we will provide appropriate redundancy packages and full support.

“It is only a week since the merger was completed. Our priority has been to communicate integration proposals to our employees as soon as we could. Today we have put in place a comprehensive employee consultation programme to support our people through the integration process. We will do everything we can to support those employees who are affected through the next few months.”

Subject to consultation, it is proposed that the business will operate from sites in:

• Peterbrough – Conningsby Road (UK and Ireland Head Office)
• Manchester Airport Hangar One (Airline Operations)
• Bradford – Aldermanbury (Holidays Division and Customer Support Functions)
• Accrington – The Globe Centre (Call Centre)
• Falkirk – Central Park (Call Centre)
• Glasgow – Granite House (Call Centre)
• Brighton – Locksview (Specialist Tour Operations)
• Birkenshaw (Distribution Warehouse)

Under the proposals, the following sites may close:

• Rochdale – Holiday House (Head Office)
• Manchester Airport – Commonwealth House (Airline Operations)
• Manchester – Lloyds House (Specialist Call Centre)
• Helmshore (Holidays Division and Customer Support Functions)
• Birmingham (Call Centre)
• Denton (Distribution Warehouse)