Merger will create the biggest such chain in Britain.

Airport news for Flights,Travel on 11/10/2010.

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Two of the UK’s high-street travel heavyweights are to merge their store networks. Though they will retain their separate branding, the merger of the high-street travel chains of Thomas Cook and the Co-operative Group will create a combined network of 1,204 travel agencies. This will result in the biggest travel network in the United Kingdom.

The merger will be handled by creating a new joint subsidiary company. Thomas Cook will control 70 per cent of this new firm. Co-operative will hold the remaining 30 per cent. The merger is expected to result in cost savings but many jobs will go as a result.

A representative of Thomas Cook said the merger could see hundreds of jobs being cut. Thomas Cook CEO Manny Fontenla-Novoa said even if some stores are close, it would not be a big number. He confirmed that the deal would inevitably lead to a certain amount of consolodation as the overlapping areas of the combined businesses are rationalised. The two firms currently have roughly 9,000 staff in their existing travel shops.

Under the merger, shops run by Co-operative will start selling products from Thomas Cook. Both companies said this would provide a major opportunity to boost sales. Seventy shops under the Going Places subsidiary of Thomas Cook will take the Co-Operative Travel brand but the online travel operations of Thomas Cook are not part of the merger.

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