Apparently, they will get some of this cash quite soon from their other company, TUI Travel.
From Bloomberg News
Sept. 29 (Bloomberg) -- TUI Travel Plc, Europe’s largest tour operator, said it plans to sell 300 million pounds ($477 million) of convertible bonds to start repayment of a loan from controlling shareholder TUI AG and fund acquisitions.
The U.K. holiday company also obtained a new 140 million- pound loan facility from a syndicate of five banks and will repay 92 million pounds of the 900 million pounds it owes TUI tomorrow, Crawley, England-based TUI Travel said today.
“These actions remove the immediate refinancing risk, but they crystallize an increased financing cost and we will need to adjust forecasts to reflect this,” Evolution analyst Ivor Jones wrote in a note today. He has a “sell” rating on the stock.
TUI Travel fell less than 1 percent in London trading, while shares of parent company TUI gained as much as 8.5 percent in Frankfurt. TUI, which owns a 51 percent stake in the tour operator, needs funding to support the unprofitable Hapag-Lloyd container line, in which it holds the biggest stake.
One smart move on the part of TUI Travel is to cancel orders for new planes.
The tour operator said today it has canceled 10 of the 23 787 Dreamliner aircraft ordered from Boeing Co., while adding no-obligation purchase rights to buy a further 13 of the planes.
Container carriers need to be doing this. They just keep thinking by the time the new ships come out of the yard, business will have picked up.
They need to just keep their old ships running, and maybe try to negotiate a similar no-obligation purchase with shipyards.
I realize this is a new idea for shipyards. Boeing has been through the ups and downs many times, so by now they know how to handle these drops.
Shipyards will need to learn how to handle the downturn. Most of the ones around today haven't been through such lean years.