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Thomas Cook chief vows to address concerns

London - Thomas Cook's Chief Executive Manny Fontenla-Novoa has acknowledged concern among investors over the company's recent trading performance in Britain but denied his own position is under pressure following a recent profit warning.

"Look, of course there are concerns about the UK and I share those concerns and I'm putting myself under pressure to ensure an improved performance in the UK," Fontenla-Novoa said in an interview with Reuters on Thursday.

"Are shareholders calling for my head? No, (but) they want to see the team delivering on strategy," he added.

Fontenla-Novoa has come in for criticism from analysts and investors after the group issued a profit warning earlier this month - the third time in twelve months it has given negative guidance on earnings.

The value of the group's shares has dropped by two-thirds since January as poor trading in the UK and unrest in the Middle East and Africa hit sales.

Thomas Cook received better news on Thursday when the Competition Commission backed the proposed merger of its UK retail business with that of the Co-operative group to create Britain's biggest retail travel business.

Fontenla-Novoa defended the group's strategy of expanding in the high street at a time when its existing shops have struggled, saying many customers prefer to have face-to-face contact when booking their holiday, which, for many, is their most expensive purchase of the year.

"The high street is the most important channel by far. There was actually last year a bit of market share gain by the high street (compared with sales online)," he said.

He added that the group had no plans to close shops in Britain following the Co-op deal which will create a UK travel retail business of over 1 300 shops.

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