p14 pink sep26 24/9/08 19:43 Page 14
City & finance
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Alitalia seeks
late bids to
avoid collapse
BELEAGUERED airline Alitalia was still waiting
for bids to save it from insolvency as TTG went
to press.
The administrator responsible for overseeing
the sale of Italy’s flag-carrier resorted to taking
out an advertisement in the press in a last-ditch
attempt to secure a buyer.
It has invited offers for Alitalia by September
30. But that could be too little, too late.
Alitalia will lose its operating licence if Italy’s
aviation authority does not have an offer or cost-
cutting plan by September 25, according to reports.
The likelihood of keeping Alitalia in the family
of Italian-owned businesses also seems unlikely,
despite prime minister Silvio Berlusconi’s hopes
it would not fall under foreign ownership.
Shops help Co-op
The list of potential foreign suitors includes Air
France, British Airways and Lufthansa.
Alitalia has not made a profit since 1999 and
its workforce of 19,000 is highly unionised. reap £150m sales
Tricia Holly-Davis.
However, managing director Mike
Tui reshuffles its
ONE year on from the merger of Greenacre remained cautious about
Travelcare and The Co-operative the second-half performance given the
student division
Travel, the group has reported first- challenging economic environment.
half profits of £7.9m. The collapse of XL Leisure Group
Half-year sales reached £150m, cost the Co-op £1.5m and Greenacre
THE STUDENT Travel and Adventure Group divi- while profit after interest was £12.2m, believes the travel industry has not
sion of Tui Travel’s Activity sector has appointed up from £2.7m last year. Mike Greenacre been fully exposed to the crisis hitting
Paul Hawkes as finance director. Finance director Paul Hemingway City institutions, which last week saw
Hawkes has worked within Tui’s group corpo- credited the results to “significant banking behemoth Lehman Brothers
rate finance team for more than three years. success” in the retail shops division. go bust and Hbos taken over.
As head of mergers and acquisitions, Hawkes He said this boosted performance, “The travel industry, like much of
was heavily involved in all the group’s the division having been the first the UK industry generally, faces huge
student-related acquisitions in the UK and North within The Co-operative Travel to be challenges,” he said.
America over the past two years. completely rebranded. “The financial issues of the last few
The appointment will allow Karen Watson to “This has played a major part in weeks have created major concerns
take up her new role as commercial director for increasing our profile on the high Paul Hemingway about investments and savings among
the Gap and Experiential businesses. Comprising street,” said Hemingway. most of the population. Increases to
entirely of newly acquired companies, this is a Within its direct business division, Future fuel bills and the instability of of oil prices will
key role within the division. Travel Homeworking bolstered performance, also impact on consumers’ holiday plans.
Paul Williams recently moved into the role of with a 49% upsurge in profitability. “With the marketplace showing significant
finance director for the School Ski businesses Co-operative Travel Management, the firm’s changes, we will need to use all of our consider-
and Alison Spearink continues as divisional business travel arm and fastest-growing business able resources to achieve our year-end goals,”
finance manager for Activity & Education. unit, also helped to buoy sales. said Greenacre.
14 26.09.2008
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