Iconic British travel company Thomas Cook went down on Monday taking all of 22,000 jobs with it, but Thomas Cook India has said it is business as usual here. The company said in a statement that it is a totally different entity and that the collapse of the UK firm will have no impact on it.
What saved the day for Thomas Cook India Group is the fact that it had become a completely different entity in 2012 when Canada's Fairfax Financial Holdings acquired a 77 percent stake in it.
"Post transfer of its entire stake in Thomas Cook (India) Limited to Fairfax, Thomas Cook UK ceased to be the promoter of Thomas Cook (India) Limited from the said date and since then, Thomas Cook UK has had no stake in Thomas Cook (India) Limited," Thomas Cook India said in a statement.
Stating that the happenings at Thomas Cook UK "have no correlation" to the Indian operations, the company added that it has been continuing, and building, its "legacy as an independent entity" in the last seven years.
"It is important that we clarify for the record that Thomas Cook (India) Limited is financially strong, profitable and maintains a positive outlook in the travel and tourism sector and continues to witness strong growth."
The UK travel giant said on Monday it filed for bankruptcy after last-minute efforts to secure a $250 million funding from private investors in the UK failed. Even as the 178-year-old company went belly up, more than 150,000 passengers were stranded, prompting the UK government to announce a massive plan to repatriate thousands of people holidaying overseas.
Things came to a head after marathon meetings the company leadership held with creditors came to a nought on Sunday.
Thomas Cook India is financially sound
Meanwhile, Thomas Cook India confirmed that the company remained financially sound. "It is important that we clarify for the record that Thomas Cook (India) Limited is financially strong, profitable and maintains a positive outlook in the travel and tourism sector and continues to witness strong growth," a company statement said.
According to Moneycontrol, Thomas Cook India Group had cash and deposits worth Rs 1,389 crore as of June 30. Shares in Thomas Cook India Ltd had taken a drubbing in the morning trade, tanking 4.15 percent after the news of the collapse of UK business was announced.
Thomas Cook India had seen a 21 percent rise in bookings in the latest holiday season. However, industry experts warned that the demise of the world's oldest travel company will have repercussions in the travel market including a near-term rise in airfares.
"Thomas Cook Group was a big player in the leisure segment. With the collapse of the oldest travel company, it will impact the travel in the short term but in the hindsight, it gives room for other players to expand their horizons," an expert told the Business Line.