24 APR 2019: Thomas Cook, has yet again had a difficult year and is exploring options including a sale of the business in a year where its market capitalization plummeted 80 percent.

According to Sky News, private equity groups along with Chinese group Fosun International, are among the companies said to be interested in parts, or the whole, of Thomas Cook.

Fosun, which is already Thomas Cook’s largest shareholder with a 17 percent stake. It also owns Club Med after paying more than US $1 billion for the French resort group in 2015.

Any takeover plans could be complicated by EU rules that require airline carriers to be owned by European investors. Thomas Cook’s tour operation, which makes up the majority of group revenues, could be bought by an international investor.

Earlier this year Thomas Cook announced a “strategic review” of its airline business, including a possible sale. Lufthansa, at the time expressed an interest in buying the long-haul operations of Thomas Cook’s German airline unit, but said it would not offer any further comment.

The Financial Post reported that Richard Clarke, an analyst at Bernstein, said a disposal of the carrier would free up the rest of the business to be bought. “A Chinese or US company would not be able to buy Thomas Cook in its current state, but could if the airline is split off,” he said.

“There may be potential buyers [of the airline business] we have not heard of so far, but there is always a possibility they will just sell what is valuable — the aircraft and slots at busy airports — to free the rest of the business to be bought by anyone,” said Clarke.

Thomas Cook issued two profit warnings last year apparently having a difficult year due to weak demand, increased competition and the UK heatwave. Changing travel habits have also played a part, said Peter Fankhauser, Thomas Cook’s chief executive.

Thomas Cook has indicated all options are on the table.

Just a brief look back …

In 2012 Harriet Green was hired as CEO by Thomas Cook – a company then battling for its survival. In her two years there, she was widely praised for the company turnaround which increased its worth to £2 ($3.4) billion, compared to less than £150 ($260.6) million when she took the reins at the failing company.

Curiously, Green unexpectedly quit as chief executive of Thomas Cook after just two years, and it was widely reported that she did so not of her own choosing, despite the company turnaround, investor confidence, and an award for businesswoman of the year. At the time Thomas Cook’s chairman said the group needed a leader with more knowledge of the leisure industry.

Green was replaced by Peter Fankhauser.