Tormented British travel agency Thomas Cook has signed a deal with budget airline easyJet to book many seats on flights run by easyJet as part of its package holidays for next summer, the Sunday Times reported.
The alliance, which is expected to be announced sometime this week, will include 80,000 trips, representing 3% of Thomas Cook’s capacity. The UK’s second biggest travel company was recently forced to turn to banks for an additional £200 million of loans, to scale back the size of the airline in an effort to slash costs.
It is believed that it is the first time that easyJet has sold its seats in bulk to another company.
Thomas Cook fell into crisis in November after which it turned to banks for loans, fuelling fears of a collapse. However, the travel company hired former Premier Farnell boss Harriet Green to change the course of the company.
To reduce its £1 billion debt, Thomas Cook has so far sold part of its aircraft fleet, five Spanish hotels and its Indian arm. The newly-joined Green is currently apprising herself of the situation and is planning a big makeover. But the outcome of the overhaul will not be known until next year.
easyJet is also not having the best of its time. easyJet’s founder, Sir Stelios Haji-Ioannou, and its directors have been at loggerheads over the past few months, which has dwarfed the other developments in the company.