News Flash

Thomas Cook comes to Russia

Thomas Cook will take a 50.1% stake in Intourist, with the aim of gaining better access to the fast growing Russian tourist market. Thomas Cook will invest up to $45 million, comprising $10 million cash and $35 million in Thomas Cook shares, to create a joint venture which will manage the future joint venture with Intourist and its retail chain, operations will start operating in Feb 2011.
Intourist will retain its current management team but the financial side of the new joint venture and the Chairman of the Board of directors will be Thomas Cook appointments. The aim of the new partnership will be to improve the company's operations and expand its worldwide presence.
Intourist is believed to have approx 13-14 % share of the Russian market, and about 10% share of the most important tourist destinations such as Turkey and Egypt. In 2009, Intourist sent 650,000 passengers abroad and had a 30% increase in volume during the first 3 quarters of 2010.

Capital Tour Collapse

Capital Tour, the 7th largest tour operator on Russia, has temporarily suspended operations from November 17 due to a freeze on its bank accounts, by its main creditor, Moscow Credit Bank, which has refused to extend any more credit to the company. Thousands of Capital's client were not allowed on flights after the TO failed to pay for their airline tickets. The company ceased all operations as of November, 25th. Some analysts believe that Capital Tour is not the only large Tour operator in Russia to over extend itself financially.