Thomas Cook chief executive resigns

Sam Weihagen, Manny Fontenla-Novoa’s deputy, will become interim CEO while a successor is found Manny Fontenla-Novoa, the chief executive of Thomas Cook, has resigned from the company, paying the price for hitting shareholders with three profits warnings in a single year. Thomas Cook announced on Wednesday that Fontenla-Novoa had left the holiday company “with immediate effect”. A permanent replacement has not been lined up – Sam Weihagen, Fontenla-Novoa’s deputy, will become interim CEO while a successor is found. It is understood that Fontenla-Novoa offered to step down on Tuesday, following a review of the company’s recent disappointing performance . “The board felt that Manny should take responsibility for recent events, and accepted his resignation,” a company insider explained. In a brief statement Fontenla-Novoa, who had run the group since June 2007, said: “Thomas Cook and its people have a sound heritage and I have been proud to have been part of the company.” The holiday industry has suffered a series of blows in recent months. The economic crisis has hit consumer confidence, with many families cutting back on discretionary spending such as overseas holidays. The political unrest in the Middle East and North Africa also deterred holidaymakers from travelling to the region. Last month, Thomas Cook announced it was reviewing its UK business after admitting that operating profits for this year would be £60m below expectations . This review appears to have concluded that a new chief executive was needed. Thomas Cook also told investors it remained on track to achieve current expectations for this financial year. Thomas Cook Travel & leisure Graeme Wearden guardian.co.uk

Posted by on August 3, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.