Thomas Cook has held talks about selling a stake in its airline, raising the prospect of the 177-year-old travel giant being broken up.
Industry sources said it had held internal discussions on how to split its airline from its tour operator to free up cash, which would be used to pay down a big debt burden and fuel expansion.
Work on a possible separation is thought to be at an early stage, with nothing likely to happen imminently. However, an eventual move could reinvigorate the company after years of turmoil.
Thomas Cook has long wrestled with how to pay down debt and fund growth amid fierce competition from budget airlines and holiday booking websites.
Under former boss Harriet Green, it partially repaired its finances in