Brexit, significant risks, airline, travel industry

Thomas Cook Group plc – Annual report – 30 September 2017

Industry: travel and leisure

OUR MARKETS TODAY (extract)

POLITICAL AND REGULATORY ENVIRONMENT (extract)

We expect Brexit to impact the regulatory framework in which we operate for both our UK business and our wider Group operations, and we are actively planning and preparing for this. Most importantly, the UK’s current membership of Europe’s Single Aviation Market will change upon the UK’s withdrawal from the EU, as will the UK’s access to EU employment markets, including the country’s ability to place temporary workers in EU Member States without additional barriers.

With regards to maintaining access to the Single Aviation Market, we continue to make the case for the extension of existing aviation arrangements through a transitional agreement that retains the current framework. This would provide welcome certainty for customers and businesses alike. Having already begun the sale of flights and holidays in the post-Brexit era, we now require urgent clarity from the UK Government and EU institutions on a transitionary agreement. We continue to make the case for a comprehensive EUUK air transport agreement in the longer-term.

We are working with UK and EU governments to highlight the benefits of the Posted Workers Directive and to advocate that these benefits are replicated in a future trade agreement, or bilateral arrangements between the UK and EU Member States.

RISK MANAGEMENT (extract 1)

OUR PRINCIPAL RISKS AND UNCERTAINTIES

The table below lists the principal risks and uncertainties as determined by the Board that may affect the Group and highlights the mitigating actions that are being taken. The content of the table, however, is not intended to be an exhaustive list of all the risks and uncertainties that may arise.

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RISK MANAGEMENT (extract 2)

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