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Airlines

Name: TUI TRAVEL GROUP
7JetSet7 Code: TUG
Status: Operational
Region: EUROPE
City: LONDON
Country: ENGLAND
Employees
Web: tuifly.com
Email: info@tuifly.com
Telephone:
Fax:
Sita:
Background
(definitions)

Click below for data links:
TUG-2010-04-BOEING GOLDCARE
TUG-2015-05 - TUI Consolidation.jpg
TUG-MAP

The "TUI Group" also referred to as "TUI Travel" and an overall common brand of "TUIfly.com."

April 2006: The overall common brand: TUIfly.com (TUG) consists of:

Arkefly (HOL): Also called "TUI Airlines Nederland." The Dutch airline flies from Amsterdam to the Dutch Antilles, South America, Africa and to the sunny south of Europe.

(http://www.arkefly.com);
(http://www.arkefly.nl);
(http://www.arkefly.an).

TUIfly Nordic (TNS): From Sweden, Denmark, Finland and Norway, TUIfly Nordic (TNS) flies holidaymakers travelling with the tour operators Fritidsresor, Finnmatkat and Star Tour to southern climes.

(http://www.tuiflynordic.se);
(http://www.fritidsresor.se);
(http://www.startour.dk);
(http://www.startour.no);
(http://www.finnmatkat.fi).

Corsairfly (COR): The French company operates from Paris and other French cities to the Caribbean, the India Ocean, and Morocco.

(http://www.corsairfly.com).

Hapagfly (HAP): From 23 airports in Germany, Hapagfly (HAP) takes passengers to the most beautiful holiday resorts around the Mediterranean.

(http://www.hapagfly.com).

Jetairfly (TUB): A vast network of more than 60 airports in the Mediterranean, the Caribbean, on the Red Sea and the Canary Islands connect with Brussels at the heart of Europe.

(http://www.jetairfly.com).

Thomsonfly (TFY): With >40 airplanes (TFY) flies from 26 British airports to >87 destinations worldwide.

(http://www.thomsonfly.com).

Hapag Lloyd Express (HLX): North, South, East and West – the low-cost airline hlx.com (HLX) covers (almost) all of Europe.

(http://www.hlx.com).

December 2006: German tourism giant (TUI) (TUG) unveiled a comprehensive "action plan" that includes an order for 41 new airplanes from Boeing (TBC) valued at $3.64 billion, its intention to cut costs next year by -€250 million/-$330 million (involving the elimination of -3,600 jobs) and the merger of its airline units under the new "TUIfly.com" (TUG) brand.

(TUI) (TUG) confirmed speculation that Hapagfly (HAP) and Hapag-Lloyd Express (HLX) will combine under the new name "in order to secure access to the low-cost, Internet and modular tour growth markets," with the remaining 5 (TUI) (TUG) airlines (Thomsonfly (TFY), TUIfly Nordic (TNS), Arkefly (HOL), Corsair (COR), and Jetair (TUB)) joining the fold in 2008. The strategy will have an earnings impact of €60 million by that time, the company said. "With "TUIfly.com (TUG)," a European brand, it will be easier to address customers. At the same time, the new brand will be an essential element of (TUI) (TUG)'s new Internet strategy," it said.

The new airplanes, which were not identified, will begin delivery in 2010, and will be replacing older leased planes until 2013. The company still has 24 737s on order with Boeing (TBC), bringing its backlog to 65 airplanes. Boeing (TBC) issued a statement confirming TUI Group (TUG)'s order for 41 airplanes, but did not specify the type(s). It said the airplanes are worth $3.6 billion at list prices. TUI will operate 56 airplanes next year, and expand capacity +27%. It displayed a mockup of "TUIfly.com" (TUG)'s new all-yellow livery on its website.

Regarding its cost-cutting program, (TUI) (TUG) said savings of -€150 million will come from materials and -€100 million from personnel, meaning the loss of -3,600 jobs in the tourism division including -2,600 in the UK and -400 in Germany. It said >3,300 new jobs will be created "by certain segments" in 2008. It also intends to reduce corporate costs to €70 to €80 million from €112 million by 2008, and merge its (TUI) Deutschland operating business into (TUI) AG (TUG). It is targeting a 2008 profit of +€450 to +€550 million.

May 2007: The Tourism division of German company (TUI) (TUG) is to merge with First Choice (ATZ) of the UK to create one of the world's largest travel groups. Following the latest amalgamation, the new grouping will be known as "(TUI) Travel" (TUG) and will be based in the UK. (TUI) (TUG), which also owns the UK's Thomson Holidays, will have a majority 51% share, with existing First Choice (ATZ) shareholders controlling the remaining 49%. Certain hotel assets will stay with First Choice (ATZ), whose (CEO) Peter Long, will become (CEO) designate of the new company.

(We are creating one of the most profitable and efficient tourism groups in the world," said (TUI) (TUG) (CEO) Dr Michael Frenzel, who will become Chairman of (TUI) Travel (TUG). "At just the right time, 2 strong partners are joining forces: We are aiming at growth and simultaneously, we will make good use of the opportunities presented by the ongoing consolidation in the European travel market."

The new company will have a combined revenue of around 12.1 billion pounds, catering for 28 million passengers per year.

The European Commission (EC) opted to clear the proposed merger of Thomas Cook (JMA) and MyTravel (GUE)/(PRH) Group, which will combine to form the Thomas Cook (JMA)/(GUE)/(PRH) Group. The tie-up remains subject to several conditions, including approval from MyTravel (GUE)/(PRH) shareholders, court consent and the listing of (JMA)/(GUE)/(PRH)shares. Assuming they are satisfied, finalization is expected on June 19, the companies said.

Regarding the agreed-upon acquisition of First Choice (ATZ) Holidays by (TUI) (HAP)/(HLX), the (EC) expressed concern over the combined company's potential dominance in Ireland. Following last week's meeting with the Competition Case Team, First Choice (ATZ) agreed to consider specific undertakings to address that concern, including the potential sale of one of its Irish businesses. "First Choice (ATZ) and (TUI) AG (HAP)/(HLX) remain confident that the proposed merger will be cleared by the European Commission (EC)," the companies said, adding that they now expect the (EC) to announce its decision on whether to clear the proposed merger at Phase I, or extend it to a Phase II investigation on or before June 4. Both the combined (TUI) Travel (ATZ)/(HAP)/(HLX) and the Thomas Cook (JMA)/(GUE)/(PRH) Group will be headquartered in London.

(TUI) Group (TUG), the German tourism company that owns 6 airlines, placed firm orders for 11 787-8s and 50 737NGs collectively valued at $4.7 billion. The airplanes will be operated by Netherlands' Arkefly (HOL), Belgium's Jetairfly (TUB), UK's Thomsonfly (TFY), Germany's TUIfly (HAP)/(HLX) and Scandinavia's TUIfly Nordic (TNS). The airlines will use the 787s within Europe and on flights to Asia and North America, while the 737s will be used on short/medium-haul routes. The airplanes will be shifted among the airlines depending on need. No engine order for the 787s was announced. All 737s will be fitted with blended winglets.

Boeing (TBC) said it is working to create a training program that will allow (TUI) (TUG) pilots (FC) to transition from 737s to 787s "so that cross-training costs are minimized and fleet efficiency is maximized."

TUIfly (HAP)/(HLX) will increase capacity for the upcoming winter schedule by +12% (ASK) year-over-year, operating 240x-weekly flights from 17 German airports to 48 destinations in 15 countries. Grenoble will be a new destination. TUIfly (HAP)/(HLX) is expecting to transport 13.5 million passengers this year.

1 737-8K5 (35132, G-FDZD), delivery for ThomsonFly (TFY) operations.

June 2007: The European Commission (EC) approved the proposed merger of First Choice Holidays (ATZ) and the tourism division of the (TUI) Group (TUG), excluding certain hotel assets.

Goodrich (BFG) was selected by the (TUI) Group (TUG) to provide Maintenance Repair & Overhaul (MRO) nacelle system services and support across its group of airlines. In total, the carriers operate a fleet of approximately 120 airplanes.

July 2007: Jordan Aircraft Maintenance Ltd (JorAMCo) completed "C" checks on 2 TUIfly (TUG)/(HAP)/(HLX) 737-800s.

February 2008: German travel conglomerate (TUI) (TUG) announced that it signed a Memo of Understanding (MOU) with Lufthansa (DLH) to combine their Low Cost Carrier (LCC) subsidiaries under 1 "joint and independent holding company." (TUI) (TUG) owns TUIfly, the combination of Hapag-Lloyd Flug (HAP) and Hapag-Lloyd Express (HLX), while Lufthansa (DLH) partners with Germanwings (RFG) and Eurowings (EWG), along with Albrecht Knauf Industriebeteiligung. The latter also signed the (MOU), (TUI) (TUG) said. "Agence France Presse" said a mid-2009 time frame for finalization is (TUI) (TUG)'s target. No other details were released, and (TUI) (TUG) said a binding agreement will depend on "a due diligence process and negotiations of the specific details," as well as the approval of antitrust authorities. The combination is likely designed to counter the growing domestic influence of airberlin (BER), which has expanded with the acquisitions of (LTU) and dba (DBA).

Germanwings (RFG) and TUIfly (HAP)/(HLX) are not expected to conclude negotiations to merge their Low Cost Carrier (LCC) operations by the time the boards of Germanwings (RFG) parent, Lufthansa (DLH) and travel conglomerate (TUI) (TUG) meet in mid-March, delaying the prospective combination. German magazine "Focus" reported that the talks will not conclude before summer, and that antitrust approval could take an additional 4 months. (TUI) (TUG) had hoped to launch Germanwings (RFG)/TUIfly (HAP)/(HLX) operations in time for the 2009 summer schedule.

Meanwhile, TUIfly (HAP)/(HLX) said that it will trim its winter 2008 to 2009 schedule by axing 7 destinations, reducing its network to 50 gateways and 730x-weekly flights.

April 2008: The (TUI) Group (TUG) said that Monteray Enterprises, which is wholly owned by shipping magnate John Fredriksen, acquired an 11.7% stake in the company, with the purchase of 29.5 million shares. Fredriksen now is the largest shareholder in the travel company.

June 2008: (TUI) (TUG) acquired the remaining stake of Moroccan Low Cost Carrier (LCC) Jet4you (J4U). It owned 40% of (J4U), the Casablanca-based airline and purchased the remaining shares, "Agence France Presse" reported. (J4U) operates 5 737 Classics and plans to double its fleet by 2013. It reported €51 million/$78.7 million in revenue last year.

(TUI) Travel (TUG) signed an agreement with AerCap Holdings (DEA) and Deucalion Aviation Funds for the sale and leaseback of 19 owned airplanes within the (TUI) Travel (TUG) fleet for $526 million. The airplanes will be acquired through a 50/50 joint venture between AerCap (DEA) and Deucalion and will be managed by AerCap (DEA), which will receive servicing fees. (TUI) Travel (TUG) will continue to operate the 11 737-800s, 6 757-200s and 2 767-300ERs on 1 to 7-year operating leases with TUIfly (HAP)/(HLX), Thomsonfly (TFY), TUIfly Nordic (TNS) and Jet4You (J4U). (TUI) (TUG) will use the proceeds to reduce debt and said the deal had no impact on its discussions with Lufthansa (DLH) regarding a potential merger of Germanwings (RFG) and TUIfly (HAP)/(HLX), "on which we intend to update the market in due course."

August 2008: German travel, tourism and shipping conglomerate, (TUI) AG (TUG) slipped to a -€125.3 million loss in the 2nd quarter, reversed from a +€70.5 million profit in the year-ago period, owing to special items "arising in particular from the strategic realignment of flight operations." Those charges more than offset what TUI (TUG) called a "gratifying performance" by its tourism division and an increase in its container shipping business. It said it suffered a book loss of €102 million on a June sale/leaseback transaction covering 19 airplanes owned by (TUI) Travel, due to the unfavorable euro/USA dollar exchange rate. It took a €56 million charge "resulting from the measurement of individual airplanes still owned by (TUI) Travel, and the reversal of existing exchange rate hedging instruments" and another €73 million impairment was attached to the merger of Hapag-Lloyd Flug (HAP) and Hapag-Llloyd Express (HLX) into TUIfly (HAP)/(HLX).

Group revenue rose +27.3% to €4.74 billion, and costs climbed +26.4% to €4.45 billion. TUI (TUG)'s gross profit of +€292.7 million was up +41.4% from the +€207 million reported in the 2nd quarter of 2007. (TUI) Travel's 2nd-quarter turnover jumped +28.7% to €4.58 billion but (EBITA) sank to a -€159 million loss from a -€3 million deficit in the year-ago period.

Lufthansa (DLH) is in "constructive negotiations" with SN Airholding, parent of Brussels Airlines (DAT)/(EBA), about an equity investment worth 45% of the Belgian company with an option to take it over fully later. The confirmation follows speculation of a tie-up last spring after Chairman Etienne Davignon acknowledged that (DAT)/(EBA) was negotiating an alliance membership and stated without naming (DLH) that "a possible financial participation of a new shareholder could only be considered under the condition that the sustainable future, the identity and the autonomy of Brussels Airlines (DAT)/(EBA) are guaranteed." The airlines said in a joint statement that negotiations are intended to produce "a collaboration with Brussels Airlines (DAT)/(EBA) as a self-dependently operating airline within the Lufthansa (DLH) affiliated group." Negotiations are expected to conclude "over the next few weeks." (DLH) would acquire 45% of (DAT)/(EBA) Airholding for about €65 million/$95.6 million through a capital increase and hold an option for the remaining 55% that could be exercised after two years. The price would be linked to (DAT)/(EBA)'s performance.

The Virgin Group (VAA) is (DAT)/(EBA)'s largest shareholder at 29.9% as a result of the merger of Brussels-based Low Cost Carrier (LCC) Virgin Express with full-service competitor SN Brussels Airlines (DAT) in 2006.

(DLH)'s interest in Brussels Airlines (DAT)/(EBA) coincides with its confirmed interest in bidding for the Austrian government's stake in Austrian Airlines (AAL) Group. The German carrier also is talking with (TUI) Travel (TUG) and Thomas Cook Group (JMA) about a possible 3-way combination of their low-fare subsidiaries.

Thomas Cook (JMA), Lufthansa (DLH) and (TUI) (TUG) subsidiary, (TUI) Travel are in "early discussions" regarding a merger of their subsidiary carriers Condor Airlines (CDF), Germanwings (RFG), and TUIFly Deutschland (HAP)/(HLX), Thomas Cook (JMA) announced. "No commercial terms have been agreed. There is no certainty that any transaction will result and a further announcement will be made if and when appropriate," the company said. (DLH) owns 24.9 % of Condor (CDF), with the remainder held by Thomas Cook (JMA). Last month, AirBerlin (BER) pulled out of a deal to acquire Condor (CDF) in a share swap. (DLH) and (TUI) (TUG) signed a merger Memo of Understanding (MOU) in January.

October 2008: AirBerlin (BER) confirmed that it is discussing a possible merger with TUIfly (HAP)/(HLX), whose effort to combine with Condor (CDF) and Germanwings (RFG) was scuttled, when Condor (CDF) parent, Thomas Cook (JMA) withdrew last month. "There are talks, but no results," a (BER) spokesperson told "Bloomberg News."

February 2009: The Thomas Cook Group announced that it plans to acquire Lufthansa (DLH)'s 24.9% stake in its Condor Airlines (CDF) subsidiary for €77.2 million/$99.9 million under options granted in 2007. (CDF) transported just <7 million passengers last year but suffered a -10% year-over-year decline in January, a source close to (CDF) said. Thomas Cook (JMA) pulled out of negotiations to combine Condor (CDF), (TUI) Travel (TUG)'s TUIfly (HAP)/(HLX) and (DLH)'s Germanwings (RFG).

March 2009: (TUI) Travel (TUG) said it is holding "very constructive" negotiations with Boeing (TBC) regarding the delivery schedule for the 23 787s it has on firm order. "We are not seeking damages from (TBC), although the delay in the program has heavily impacted our expansion plans," (TUG) Aviation Director Christoph Mueller said. "The 787s are part of our strategy to introduce several new long-haul destinations which we cannot serve nonstop with our current fleet."

Manchester-based, First Choice Airways (ATZ), now part of Thomson Airways (TFY) following the 2007 merger of (TUI)'s Travel division with First Choice Holidays, was due to receive its 1st 787 last month. That delivery now has been delayed to March 2011. The travel group is not demanding compensation from (TBC) because "it's negative," Mueller argued. "We are in very constructive negotiations with (TBC) to try to improve the situation and move the foreseen delivery schedule forwards. We are optimistic these talks will lead to a solution."

Air Berlin (BER) and TUIfly (HAP)/(HLX) confirmed that they are in discussions regarding a long-awaited alliance. (BER) said that negotiations regarding a cross-shareholding with the (TUI) Travel (TUG) subsidiary are well under way, while a (TUG) spokesperson in Hanover said that talks are in an advanced stage. Other sources close to the negotiations said that (TUG) will take 20% of (BER) through a capital increase, with (BER) acquiring the same percentage of (HAP)/(HLX).

If the deal goes through, (HAP)/(HLX) will transfer its loss-making scheduled shuttle services to (BER) along with 19 of its 38 operating airplanes, which will fly under the (BER) brand but with (HAP)/(HLX) crews. (HAP)/(HLX)'s fleet is too large for its needs and the reduction would allow it to concentrate on its profitable European charter operation.

Later, (BER) reported a -€75 million/-$99.6 million loss for 2008, reversed from a +€21 million surplus the prior year, but buttressed its long-term future with the sale of a 15.3% stake to Turkey's (ESAS) Holding and a share swap with (TUI) Travel (TUG)'s TUIfly (HAP)/(HLX).

(ESAS) which operates Istanbul Sabiha Gokcen-based, Pegasus Airlines (PGS), acquired the stake held formerly by Len Blavatnik. The shares were sold in January but the buyer was not revealed until Sunday. The deal is subject to approval by German competition authorities. The price was not disclosed.

The long-rumored tie-up with TUIfly (HAP)/(HLX) was finalized this month. Each airline will take a 19.9% stake in the other on October 1, at which point (BER) will operate TUIfly (HAP)/(HLX)'s scheduled services, while TUIfly (HAP)/(HLX) will continue to operate its charter flights. (BER) will wet-lease 17 TUIfly (HAP)/(HLX) airplanes. TUIfly (HAP)/(HLX) will operate 21 planes on (TUI) Deutschland tourism flights. (TUI) Travel (TUG) Managing Director Central Europe Volker Bottcher said the deal will result in "very few" job losses, while (BER) (CEO) Joachim Hunold said the arrangement will "strengthen both companies" and give (BER) access to the "highly interesting markets" of Cologne, Stuttgart and Italy. (BER) said it expects €20 million in synergies.

(BER) is operating its city-to-city routes under the "City-Shuttle" brand in cooperation with Austrian partner Niki (NKI). (BER) currently operates 117 airplanes.

April 2009: Ryanair (RYR) confirmed that (TUI) UK (TUG) agreed to stop "screenscraping" its website in settlement of legal proceedings filed against it. The English High Court approved the cease-and-desist agreement that was signed by (TUI) (TUG) on March 26.

May 2009: (TUI) Travel (TUG) is expecting annual savings of -€40 million/-$54 million thanks to the new alliance between its TUIfly (HAP)/(HLX) operator and Air Berlin (BER), (TUI) (TUG) Chairman Michael Frenzel said in Hanover. (BER) will take over 17 airplanes from TUIfly (HAP)/(HLX) in order to operate scheduled shuttle services, while (HAP)/(HLX) will operate 21 airplanes on charter routes. Each company took a 19.9% share in the other and the cooperation is set to start on October 1, pending approval from competition authorities.

(TUI) Travel (TUG) Aviation Director Christoph Mueller will leave the company October 31. He resigned from the (TUI) board this month. (ARL) named Christoph Mueller (CEO), replacing Dermot Mannion, who stepped down in April. Mueller, 47, most recently served as (TUI) Travel (TUG)'s Aviation Director, a position that gave him responsibility for the company's 7 airlines. He joined (TUI) in early 2006. Prior to that, he was (DHL) Worldwide's (CFO) and a member of Duetsche Post's executive committee. (ARL) said he also has held senior positions with Daimler Benz Aerospace, Lufthansa (DLH), and Sabena (SAB).

September 2009: Air Berlin (BER) and (TUI) Travel will not implement the cross-shareholding agreement between (BER) and (TUI)'s German aviation business (TUG) that was announced in March, although they will forge ahead on their commercial accord as planned.

(TUI) (TUG)'s German airlines, Hapag-Lloyd Fluggesellschaft (HAP) and Hapag-Lloyd Express (HLX), fly under the TUIfly (HAP)/(HLX) brand. "(TUI) Travel will now either acquire a 9.9% stake in Air Berlin (BER) for a cash consideration of €33.5 million/$48 million, which it will sell over a period of time, or alternatively will pay (BER) €15 million [in compensation]. (BER) will no longer acquire a stake in TUIfly (HAP)/(HLX). (TUI) Travel will also no longer receive the right to nominate a non-executive director to the Board of (BER)," (TUI) (TUG) said, noting the amendment to the deal followed "discussions with the German Federal Cartel Office."

Whether (TUI) (TUG) will take the 9.9% stake in (BER) or pay compensation depends on the outcome of further talks with the competition authority, (BER) said. Under the initial agreement, (TUI) Travel was to acquire a 19.9% equity stake in (BER) for €64.8 million via a capital increase, while (BER) would buy 19.9% of TUIfly (HAP)/(HLX) for €36.3 million in cash. The transaction was subject to antitrust clearances and had an effective date of October 1.

The Federal Cartel Office objected to the original cross-shareholding, and more specifically feared that (TUI) Travel would gain too much knowledge of (BER)'s strategic plans if it was allowed to appoint a director to the (BER) board, "Dow Jones" reported.

The German regulator, however, did approve the takeover of TUIfly (HAP)/(HLX)'s scheduled Flight Operations by (BER), which will operate 13 TUIfly (HAP)/(HLX) airplanes in the coming winter season and 14 in summer 2010. (BER) (CEO) Joachim Hunold said the expansion would be "extremely important for business (C) customers in particular."

Central Europe (TUI) Travel Managing Director Volker Bottcher said the company would now concentrate on its tourist portfolio and that TUIfly (HAP)/(HLX) would command "a better competitive position within the European air travel market."

(TUI) Travel will sub-charter 1 additional airplane to a 3rd party this winter and will remove another airplane from the fleet next May. Accordingly, its German charter business will operate 23 airplanes from summer 2010.

Air Berlin (BER) announced that it will add 10 new destinations and 54 new nonstop services, especially from Cologne, Stuttgart and Memmingen/Munich West, starting November 1, following its takeover of TUIfly (HAP)/(HLX)'s scheduled flight operations. (BER) will add 13 (HAP)/(HLX) 737s to its schedule in the coming winter season and 14 in the summer 2010 schedule.

(TUI) Travel (TUG) said that it has engaged "in extensive discussions with Boeing (TBC)" regarding its 787 order book and "both parties" have agreed that 10 of its 23 firm orders will be cancelled while 13 purchase rights will be added. "This optimizes the flexibility around our long-haul capacity," (TUI) (TUG) said, adding that it now expects to take delivery of its 1st 787 Dreamliner in "early 2012." Manchester-based First Choice Airways (ATZ), part of Thomson Airways (ATZ)/(TFY) following the 2007 merger of (TUG)'s travel division with First Choice Holidays, originally was due to receive its 1st 787 in February 2009 and later postponed 1st delivery to March 2011.

(TUI) Travel (TUG) additionally announced a number of financing measures that will enable it to refinance its £900 million/$1.43 billion shareholder loan with (TUI) AG, which owns a 51.6% stake in the tour operator. The measures include raising approximately £440 million through issuance of a convertible bond and additional bank facilities. "The financing measures allow us to commence repayment of our shareholder loan in a proactive manner and will also allow us to continue to take advantage of attractive [merger and acquisition] opportunities," (CEO) Peter Long said.

The (TUI) Travel (TUG) cancellations will bring the number of axed 787 Dreamliner orders this year to 83. (TBC) maintains that the delayed program's 1st flight "is expected" by year end.

December 2009: (TUI) Travel (TUG), the tourism conglomerate that includes TUIfly (HAP)(/(HLX), Thomson Airways (ATZ)/(TFY), Arkefly (HOL), Corsairfly (COR) and Jet4you (TUB), among others, reported a -£24 million/-$39.6 million deficit in its fiscal year ended September 30, a +91% improvement from the -£267 million loss suffered in the prior year.

(CEO) Peter Long said the result was a reflection of "the effectiveness with which we have delivered merger synergies" and the fact that "the main summer holiday is an essential expenditure" for customers. (TUI) Travel (TUG) was created 2 years ago through the merger of (TUI) AG and First Choice Holidays. The company said it has realized £120 million in synergies so far and expects an additional £60 million in the current fiscal year. However, it also took £340 million in charges last year, including £143 million in merger expenses, a £124 million writedown of the value of 747s operated by Corsairfly (COR) and £32 million related to its revised share swap deal with Air Berlin (BER), which resulted in (TUI) (TUG) acquiring 9.9% of (BER).

Group revenue slipped -0.5% to £13.86 billion and the operating result swung to a +£37 million profit from a -£184 million loss in 2007 to 2008. The company's Mainstream Sector, which includes its aviation business, reported an underlying operating profit of +£305 million, up +10% year-over-year. (TUI) (TUG) said underlying results were from continuing operations and excluded "separately disclosed items," amortization, goodwill impairment and certain taxes.

April 2010: Boeing (TBC) announced that (TUI) Travel PLC (TUG), the world’s leading leisure travel company, is the launch customer for "GoldCare." The agreement to support the airlines' 787 Dreamliner fleet covers 13 airplanes currently on order by (TUI) (TUG). The 787s will be operated by Thomson Airways (TFY), Tuifly Nordic (TNS), Jetairfly (TUB), and Arkefly (HOL). The GoldCare contract is for a period of 12 years from the delivery date of each airplane.

Boeing (TBC) will provide (TUI) Travel (TUG) with GoldCare Enterprise, which encompasses the full portfolio of available GoldCare services.
GoldCare is Boeing (TBC)’s life cycle solution that provides maintenance, engineering and material management as a multi-year service managed by (TBC). GoldCare is made possible through (TBC)’s advanced e-enabling technologies.

“We are thrilled to be the launch customer for this service,” said Fraser Ellacott Director of Engineering, (TUI) Travel PLC (Thomson Airways (TFY). “We have developed this exciting concept with Boeing (TBC) and are confident that this service will optimize the efficiency of our airlines’ operations, reduce complexity, provide value to our stakeholders and allow us to continue to provide outstanding service for our customers.”

Support using GoldCare Enterprise will allow the airline group to focus on its passengers, knowing that its airplane assets achieve maximum utilization and are maintained to the highest standards by Boeing (TBC) through its GoldCare partners. “As the launch customer for GoldCare, (TUI) Travel (TUG) demonstrates the desire for and benefits of this program,” said Bob Avery VP Fleet Management for Commercial Aviation Services, Commercial Airplanes. “GoldCare will boost airplane reliability, reduce cost and improve efficiency throughout the life cycle of the airplane.

“(TUI) Travel is a strong development partner on this program and we look forward to our continued partnership as (TUI) Travel’s 787s enter service.” To deliver GoldCare, Boeing (TBC) leads a global team performing comprehensive material management, engineering and maintenance services at a predictable cost based on flight hours. GoldCare provides airlines with 24/7 operations center support using the latest technology to turn airplane operating data into diagnostic information that enhances efficiency and maximizes airplane availability.

The GoldCare team also includes (GE) Aviation (GEC), Hamilton Sundstrand, Honeywell (SGC), Moog Inc, Panasonic and Rockwell Collins. These original equipment manufacturers (OEM) will support the material, repair and overhaul (MRO) needs for the systems they provide on the 787.

July 2010: Royal Air Maroc (RAM) and (TUI) Travel (TUG) signed a letter of intent stipulating that (RAM) will take a majority stake in Jet4You (J4U), (TUI) Travel (TUG)'s Moroccan low-cost/charter carrier.

(J4U) operates 175-seat 737-400s and 189-seat 737-800s on a network spanning 7 Moroccan airports and 12 European cities, mainly in France but also including Barcelona, Geneva and Brussels South Charleroi. It has been 100%-owned by (TUI) (TUG) since 2008.

"The intention of any transaction is to build on the (J4U) market position as a low-cost hybrid carrier and its independent profile,” the 2 companies said in a joint statement, adding, “as and when any transaction is agreed a further statement will be issued.” According to Moroccan media, (RAM) would acquire two-thirds of the share capital of (J4U).

(RAM) noted that the agreement is “part of the contribution to the enhancement of tourist flows to Morocco, and it’s a good fit to the business strategy of the company that aims at providing more travel options to its customers.”

(J4U) was established in 2005 by a group of Moroccan private investors and (TUI) (TUG), holding respectively 60% and 40% of the share capital, as a competitor to Atlas Blue (BMM), (RAM)’s Low Cost Carrier (LCC). (RAM) integrated Atlas Blue (BMM) into its mainline operations last year but apparently sees the need to reestablish an independent (LCC).

The Moroccan government in December 2006 signed an "open skies" agreement with the European Union (EU), removing all capacity restrictions between the (EU) and Morocco and thus opening the market for unrestricted services to the country by European (LCC)s, including Ryanair (RYR) and easyJet (EZY). The Air Arabia (ABZ) Group also operates an (LCC) in Morocco, Air Arabia Maroc (AAM), which is based in Casablanca and launched operations in April 2009. It offers services to 11 European destinations. (J4U) has its main base at Casablanca as well.

October 2010: Corsairfly (COR) elected Pascal de Izaguirre, (CEO).

January 2011: The British Airline Pilots’ Association (BALPA) scored a victory by winning a vote to represent pilots (FC) at Jet2.com (JT2). (BALPA) now represents pilots (FC) at all major UK-based airlines, including British Airways (BAB), Virgin Atlantic (VAA), easyJet (EZY), FlyBe (BEE), Monarch Airlines (MON), and (TUI) (TUG)’s Thomson Airways (ATZ)/(TFY).

(TUI) Travel (TUG) ordered 2 A330-300s for its French airline subsidiary Corsairfly (COR), which will operate the airplanes on long-haul routes from Paris to the French Caribbean islands, North America and to Indian Ocean destinations. The airplanes will be configured in 2 classes with a total of 362 seats.

“We are delighted with this decision by (TUI) Travel (TUG) to buy A330 airplanes,” (COR) Managing Director Pascal de Izaguirresaid. “We already experience excellent performance from the A330-200s we currently operate and these new airplanes (with a track record of spectacular efficiency, reliability and low operating costs) will allow us to perfectly match our new strategy. Moreover, airplane commonality, unique to Airbus (EDS), will allow us to meet our restructuring program target.”

March 2011: Amentum Capital delivered one new 737-800 to the (TUI) Travel Group.

September 2011: Rolls-Royce (RRC) has won a contract from leisure travel company (TUI) Travel PLC (TUG) to provide (Trent 700) engines to power two A330 airplanes which will also be covered by TotalCare® long-term support services. The airplanes will be operated by TUI (TUG)’s subsidiary, Corsairfly (COR) and the contract also includes TotalCare® services for 2 additional A330s already in service with the airline.

April 2012: (TUI) Russia & the (CIS) (TUG) will form a joint venture (JV) with Surgut-based, Kolavia Airline (KLV), effective May 1. The new (JV), called "MetroJet," will operate under the (TUI) brand and will offer service from Russia to Turkey, Egypt, and Spain. Further details on the re-branding will be announced later in the month, the company said.

(KLV) ceased operations in September 2011 following a fatal fire in January 2011 on a Tupolev Tu-154, while the airplane was on the Surgut taxiway. It has continued to operate since then as a charter airline with 4 A321s.

(TUI) Airline Management (TUG) (the 5th largest airline in the region) operates a fleet of 155 airplanes in Europe. Members operate scheduled flights and charter flights to >150 destinations worldwide, departing from >60 airports in 9 European countries. The group includes carriers such as TUIfly (HAP)/(HLX) in Germany, Thomsonfly (ATZ)/(TFY) in the UK, TUIfly Nordic (TNS) in Scandinavia, ArkeFly (HOL) in the Netherlands, JetairFly (TUB) in Belgium, and Corsairfly (COR) in France.

The (TUI) Travel Group (TUG) has purchased Boeing (TBC)’s 5-year Maintenance Performance Toolbox for its Boeing fleet, comprising 737-800s, 737 Classics, 757-200s, 767-300ERs and 747-400s. The Maintenance Performance Toolbox will allow (TUI) Travel (TUG)’s airline subsidiaries: Arkefly (HOL), Corsair (COR), Jetairfly (TUB), Thomson Airways (ATZ)/(TFY), and TUIfly Nordic (TNS) in Europe, and its joint venture Sunwing Airlines (SWG) in Canada, to improve their dispatch reliability through the use of e-enabled technologies that run on the system.

“We anticipate improving our maintenance operation efficiencies through better tracking of line maintenance records and up-to-the-moment technical information,” Thomson Airways (ATZ)/(TFY) Technical Director Jason Mahoney said.

October 2012: Singapore-based, (BOC) Aviation (SIL) will lease 2 Embraer E190s to (TUI) Travel (TUG) for its Belgian Jetairfly (TUB) subsidiary. The E190s will be delivered in the 1st half of 2013. The E190s, which will be configured with 112Y slimline seats in a single class layout, will provide more capacity on lower-demand routes.

Jetairfly (TUB) Chairman Elie Bruyninckx said, “With the E190, we can reduce the number of costly triangle and intermediate-stop flights that are necessary with our larger airplanes to consolidate loads in smaller markets. That means more nonstop flights and shorter travel times for our passengers.”

November 2012: The (KfW) (IPEX)-Bank is financing the acquisition of an A330-300 for (TUI) Travel (TUG), which was delivered in mid November. The A330-300 will be leased to Corsair (COR), a (TUI) Travel (TUG) subsidiary. The (KfW) (IPEX)-Bank is sole financier and security trustee.

June 2013: (TUI) Travel (TUG) has signed a commitment for 40 Boeing 737 MAX-8s and 20 Boeing 737 MAX-9s, plus options on a further 90 737 airplanes valued at $6.09 billion at list prices.

September 2013: Jeppesen, a part of Boeing (TBC) Digital Aviation, recently agreed to a new five-year service contract with (TUI) Travel PLC (TUG), a leading international leisure travel company, featuring all the Group’s airline operations. Through the new agreement, Jeppesen will provide multiple services for the airlines to optimize flight planning capabilities and reduce operating costs.

A newly enhanced Jeppesen flight planning solution will be integrated into operation by (TUI) Travel (TUG) through the agreement. Components of this system include Jeppesen JetPlanner, a Windows based user interface that provides a complete end-to-end flight planning and dispatch solution, powered by the Jeppesen JetPlan engine. Additionally, Jeppesen’s (NOTAM) Management Tool software processes (NOTAM) information quickly and efficiently to reduce the time required for preflight planning operations, while providing real-time situational awareness to (TUI) Travel (TUG)’s dispatchers.

An upgraded Jeppesen flight planning optimisation engine will maximise route efficiency to reduce fuel burn and operating costs for the airlines. In all, the Jeppesen Flight Planning solution will provide (TUG)’s airlines with simplified, consolidated access to flight data through an intuitive user interface.

“As (TUI) Travel (TUG) Flight Operations continue to expand, our complete Flight Planning system will adapt to this evolving landscape and deliver optimised flight plans and access to critical data,” said Tim Huegel Director, Jeppesen Aviation Portfolio Management. “We will continue to work closely with the Group to understand their needs and will provide solutions to increase operational efficiency and reduce costs.”

The Jeppesen JetPlan flight planning engine has been trusted by business and commercial aviation operators for >30 years. Enhancements to JetPlan route optimisation functions work to quickly comply with Eurocontrol routing requirements and determine flight plans that maximise efficient fuel consumption and flight scheduling.

“The enhanced route optimisation capabilities provided by Jeppesen are attractive to us, considering our flight schedules in the increasingly complex and costly European airspace system,” said Tim Kowalski Head of the (TUI) Group Operation Centre, within TUIFly and the Project Manager responsible for Jeppesen migration within the airlines. “Jeppesen will provide us with cost-effective flight plans and adaptive solutions that will be key components of our continued success moving forward in a competitive business environment.”

November 2013: (TUI) Travel (TUG) has completed an order for +2 additional Boeing 787-8 airplanes. The new 787 Dreamliners, scheduled for delivery in 2016, will bring the group’s fleet of the type to 15.

(TUI) Travel operates 6 airlines, 4 of which operate, or will operate, 787 services: Thomson Airways (ATZ)/(TFY), Arke (HOL), (TUI) Fly Nordic (TNS) and Jetairfly (TUB).

At current list prices, the 2 787s are worth $422 million, although the group says it received a discount as a result of various concessions, allowances and support from Boeing (TBC).

Peter Long, (TUI) Travel (TUG)’s (CEO), said: “We have developed our strategy by putting the customer at the center of everything we do.
“The 787 Dreamliner is another example where we have led the way by enhancing the customer experience and improving environmental efficiencies, both of which differentiate us from other tour operators.” The 787s will most likely be used on long-haul leisure routes.

December 2013: Boeing (TBC) has selected UK-based leisure carrier (TUI) Travel (TUG) as a partner for the next part of its "ecoDemonstrator" program, which aims to accelerate creation and production of sustainable technologies for airplanes. (TBC) has selected its 757 for the program, which will spend the next year being fitted with a selection of innovative technologies and begin technical validation and operational testing in 2015. Also in 2015, the ecoDemonstrator 757 flight test airplane will visit a number of cities in Europe to showcase the new environmental technologies. At the end of the development program, the businesses will test a recycling method for improving recovery and reuse of the airplanes’s materials.

(TUI) Travel Deputy (CEO) Johan Lundgren said: “The ecoDemonstrator program sets a benchmark in research and development (it has the potential to drive meaningful change in the industry and we look forward to being a part of the program). It is a fantastic example of innovation which plays a significant role in mapping out the future of air travel, not just for Boeing (TBC) and (TUI) Travel (TUG), but for the industry as a whole.”

(TUI) Travel (TUG) has a historically strong relationship with Boeing (TBC). On November 19, (TUG) completed an order for +2 787-8s, taking its total commitment to 15 of Boeing’s newest airplane. In May, (TUI) Travel (TUG) committed to buy 60 737 MAX airplanes, with 90 options. In addition, (TUG) will also retrofit its 737 NG airplanes with Aviation Partners Boeing (APB) new Split Scimitar winglets, with modified airplanes flying from March 2014.

June 2014: (TUI) Travel (TUG) has reorganized its 5 tour operator airlines, which will now operate as one division. This will be led by Chris Browne, previously Managing Director Thomson Airways (ATZ)/(TFY), who has been named Chief Operating Officer (COO) (TUG) Aviation Division. John Murphy becomes Managing Director Thomson Airways (ATZ)/(TFY).

July 2014: 787-8 (37227, G-TUIE), (GEF) leased to (TUI) Travel (TUG) and sub-leased to Thomson Airways (ATZ)/(TFY).

January 2015: News Item A-1: Boeing (TBC) delivered a new 737-800 and a 787-8 Dreamliner (36426, G-TUIG) to the (TUI) Travel Group (TUG). The 787-8 was sub-leased to Thomson Airlines ((ATZ)/(TFY).

March 2015: Boeing (TBC) has begun several months of flights with its ecoDemonstrator 757 to evaluate new technologies to improve commercial aviation's efficiency, reduce noise and carbon emissions. Boeing (TBC) is collaborating with UK-based leisure carrier, the (TUI) Group (TUG) and (NASA) (NAS) on ecoDemonstrator 757 tests.

On the left wing, Boeing (TBC) said it will evaluate technologies to reduce environmental effects on natural laminar flow as a way to improve aerodynamic efficiency. As an example, the ecoDemonstrator 757 will test a Krueger shield that can protect the leading edge from insects.

Boeing (TBC) is under contract with (NASA) (NAS)’ Environmentally Responsible Aviation (ERA) Project to test 2 technologies on the ecoDemonstrator 757. On the right wing, (NASA) (NAS) will test bug-phobic coatings to reduce the residue left by bug strikes on the leading edges of airplane wings; the goal is to enable more drag-reducing laminar flow over the remainder of the wing.

On the vertical tail, (NASA) (NAS) and Boeing (TBC) are testing active flow control to improve airflow over the rudder and maximize its aerodynamic efficiency. Based on wind-tunnel testing, active flow control could improve the rudder's efficiency by up to +20% and may allow for a smaller vertical tail design in the future.

The (TUI) Group (TUG) is collaborating with Boeing (TBC) as a way to reduce carbon emissions. (TUG), which includes 6 airlines, is preparing for a low-carbon future by reducing its environmental impact and encouraging its suppliers and customers to do the same.

Later this year, Boeing (TBC) said it will announce additional tests with the ecoDemonstrator 757, which was leased for testing purposes. After the flights are complete, (TBC) will work with the Aircraft Fleet Recycling Association and the lessor, Stifel’s airplane finance division, to recycle the 757 using environmental best practices.

May 2015: News Item A-1: The (TUI) Group (TUG) has placed a firm order for a single Boeing 787-9, plus 1 option, and has switched 2 of its smaller 787-8s already on order for the larger variant.

Boeing (TBC) said the order was valued at $257 million at current list prices. Following the changes, the (TUI) Group (TUG) will operate a fleet of 13 787-8s from this summer and will add the 3 787-9s within the next 3 years.

“Adding the 787-9 to our order book enables the (TUI) Group’s airlines to continue to develop its long-haul network, giving access to new and exciting leisure destinations,” (TUI) Group Managing Director Aviation Henrik Homann said.

The 787-9 can hold an additional 40 passengers, compared with the 787-8, and has an additional 830 km/450 nm range.

The (TUI) Group (TUG) is parent to 6 airlines: TUIfly (HAP)/(HLX), Thomson Airways (ATZ)/(TFY), TUIfly Nordic (TNS), Jetairfly (TUB), Corsair (COR), and Arke (HOL), which operate 144 mid- and long-haul airplanes across a network of >180 destinations.

The (TUI) Group (TUG) also has 60 737 MAXs on order.

News Item A-2: The (TUI) Group (TUG) plans to rebrand its 5 airlines under a single “TUI” brand as part of its roadmap for growth initiative to be achieved by 2018.

Beginning in the fall 2015, the (TUI) Group (TUG) said it will use the single branding for its airlines. (TUG) currently operates around 140 medium- and long-haul airplanes in various markets under different brand names: TUIfly (Germany) (HAP)/(HLX), Thomson Airways (UK) (ATZ)/(TFY), Arke (Netherlands) (HOL), Jetairfly (Brussels) (TUB), and TUIfly Nordic (Sweden) (TNS).

Each carrier will maintain its separate air operator’s certificate (AOC) and will remain responsible for its own crew and flight planning, but will operate under “one central organization.” Also, maintenance should be concentrated under one organization.

According to a company statement, crew and fleet would be more efficient when switched between different bases and nations, depending on demand. This should increase effectiveness of the airlines. (TUG) hopes to deliver operational efficiency improvements worth €50 million/$57 million per annum by 2018.

“A strong one-brand policy will make it considerably easier to use the airplanes of the European fleet and the crews across the individual countries, as demand requires it,” (TUG) said. “The resulting increase in the effectiveness of (TUG) airlines is to enable (TUG) to deliver operational efficiency improvements worth 50 million euros per annum by 2018.”

The (TUI) Group (TUG) said the strategy will generate more synergies by joining business units and would raise shareholder value.

Just recently, the (TUI) Group (TUG) placed a firm order for a single Boeing 787-9, plus 1 option, and has switched 2 of its smaller 787-8s already on order for the larger variant.

News Item A-3: Lufthansa Systems will provide Information Technology (IT) solutions for 5 holiday airlines of the (TUI) Group (TUG), which include the complete range of Lido/Navigation solutions (paper-based and electronic charts as well as continually updated navigation and airport data). From the summer of 2015, the (TUI) airlines will also use the NetLine/Sched schedule management solution to optimize their fleet and slot planning. The holiday airlines of the (TUI) Group (TUG) operate a fleet of around 140 airplanes.

News Item A-4: See attached: - "TUG-2015-05 - TUI Consolidation.jpg"

August 2015: Tour operator, the (TUI) Group has disposed of its remaining shares in Air Berlin (BER) a spokesman has confirmed. The firm has been gradually watering down its stake in the airline from a peak of 9.9% to <3% late last year.

In 2009, (TUI) Travel (TUG) and Air Berlin (BER) signed a strategic partnership agreement in which each party was to have acquired 19.9% of each other's shareholdings.

While the equity swap did not happen, Air Berlin (BER) did take over all of TUIfly (Germany) (HAP)/(HLX)'s domestic German routes as well as those to Italy, Croatia, and Austria. In addition, (BER) agreed to wet-lease 5 737-700s and 9 737-800s from TUIfly through to 2019.

October 2015: (TUI) (UK&I) announced Thomson Cruise Managing Director Helen Caron and Digital Director Jeremy Osborne will join the UK Board, effective immediately.

June 2016: UK leisure operator, Thomson Airways (ATZ)/(TFY) has taken delivery of its 1st Boeing 787-9, taking its total 787 fleet to 10 airplanes.

The 787-9 touched down at Manchester Airport in northern England on June 28, after flying in from Boeing’s Charleston factory in South Carolina. (ATZ)/(TFY) is scheduled to rebrand as "TUI" in autumn 2017; therefore the 787-9 is painted in the new "TUI" livery.

(ATZ)/(TFY) will initially operate the 787-9 on short-haul routes and its 1st passenger flight will be between Manchester and the Spanish city of Malaga on July 1. The 787-9 will make its long-haul debut between Manchester and Montego Bay, Jamaica, on July 15.

“This 787-9 airplane is key to expanding our long-haul program,” (ATZ)/(TFY) Managing director John Murphy said. This winter, Thomson Airways (ATZ)/(TFY) will launch holidays to Sri Lanka, followed by St Lucia, which will join its network next summer.

The 787-9 includes +45 more seats than the 787-8, taking its total capacity to 345 passengers. (ATZ)/(TFY) will be taking delivery of up to 4 787-9 Dreamliners before June 2019, so there will be 9 787-8s and 5 787-9s in the fleet.

Thomson Airways (ATZ)/(TFY), which was the UK 787 launch customer, operates a fleet of 63 Boeing 737, 757, 767 and 787s to >88 destinations in 30 countries.

July 2016: European leisure travel specialist the (TUI) Group (TUG) has converted options on 10 Boeing 737 MAX 8s and 1 787-9, valued at $1.4 billion at list prices.

The options, which were firmed at the Farnborough Airshow, are from a 2013 order for 60 737 MAXs plus 60 options. This leaves (TUG) with 50 outstanding MAX options and 70 firmed airplanes, with deliveries slated to begin in 2018 and run over a 4-year period. These airplanes will be deployed primarily on Mediterranean routes.

The 737 MAX 8s will be powered by (CFM) International’s (LEAP-1B) engines, under a powerplant deal valued at $200 million.

(TUG) already operates 13 787-8s, mainly to the Caribbean, and has recently taken delivery of its 1st 787-9. This latest order marks (TUG)’s 4th (GEnx)-powered 787-9, and its 17th 787 overall, leaving it with +1 more option yet to be firmed.

Speaking at Farnborough, (TUI) Group Head of Northern Region, Hotel Purchasing & Aviation Platform, David Burling said that operating modern airplanes, such as the 737 and 787 is very much a part of (TUG)’s strategy. “As a group, we believe in investing in new airplanes for the operational, customer and environmental benefits.”

Burling was unfazed by the disruption caused by the UK’s "Brexit" decision to exit the European Union (EU), which he said could take 2 years to unfold. “When we do the original [fleet] planning, we build in flexibility. (TUG) and the travel industry in general is very flexible. We will adjust and cope with whatever happens.”

(TUG) will be the 2nd European operator to operate the 737 MAX. It was also the UK launch customer for the 787-8 in 2013. (TUG) has selected GoldCare component services for its 737NG and 737 MAX fleets.

October 2016: News Item A-1: "Etihad, TUI Group Plans New Leisure Airline" by (ATW) Kurt Hofmann hofmann.aviation@netway.at, October 5, 2016.

The Etihad Aviation Group and German holiday giant (TUI) (HAP)/(HLX) are in discussions to create a European leisure airline group, which is expected to operate 58 airplanes on point-to-point services to key tourist markets. The partners detailed plans to combine the leisure operations of the airberlin (BER) group and German carrier TUIfly (HAP)/(HLX) into a new airline group, serving destinations from Austria, Germany, and Switzerland.

The new holding company could be based in Austria, with (EHD) and (TUI) Group each taking a 24.9% stake. The remaining 50.2% is expected to be held by an Austrian foundation, to ensure Austrian majority ownership and maintain international traffic rights.

The still-to-be-named airline is planning a fleet of 14 Boeing 737s (currently operated by TUIfly (HAP)/(HLX) for airberlin (BER) under a wet-lease agreement), 27 TUIfly (HAP)/(HLX) 737NGs, as well as 17 Airbus A320 family aircraft from Austrian airberlin (BER) subsidiary FlyNiki (NKI).

(TUI) (HAP)/(HLX), Etihad (EHD) and airberlin (BER) said they intend to finalize an in-principle agreement in due course, subject to regulatory approvals, but it is understood the partnership could be completed within the following 2 weeks. An announcement is expected October 26. It is also understood TUIfly (HAP)/(HLX) pilots (FC) will be offered jobs with Etihad Airways (EHD).

“TUIfly (HAP)/(HLX) hasn’t grown in recent years. Also, TUIfly (HAP)/(HLX) has no long-haul airplanes in its fleet, but the focus of the (TUI) (TUG) tourism business is [long-haul] destinations in Asia, for example.” As (EHD) is a long-haul carrier, the cooperation could see (EHD) flying (TUG) holidaymakers to long-haul destinations.

In a letter to employees, TUIfly (HAP)/(HLX) supervisory board Chairman Henrik Homann said (TUI) Deutschland (HAP)/(HLX)’s profits and results have been impacted for many years by substantial overcapacity in the airline industry and TUIfly (HAP)/(HLX)’s above-market cost structure. “We own too much flight capacity and we’re producing it at a cost which is significantly higher than market prices. As a result, flight services in Germany for our tourism products are often available from our competitors at considerably lower prices than those offered by TUIfly to (TUI) Deutschland, with adverse impacts on our profitability and results in that source market,” Homann said.

TUIfly (HAP)/(HLX) is part of (TUI) Group (TUG), which has a portfolio of 6 European airlines and around 140 airplanes, a distribution network of >1,800 travel agencies and online portals, around 300 hotels, and 14 cruise liners.

It is understood the other (TUI) Group (TUG) airlines are not part of the deal. These comprise UK-based Thomson Airways (ATW)/(GUE) (63 airplanes), Sweden’s TUIfly Nordic (TNS) (8 airplanes), (TUI) Airlines Belgium (21 airplanes), (TUI) Airlines Netherlands (HOL) (10 airplanes) and France’s Corsair International (COR) (7 airplanes).

News Item A-2: "TUIfly (HAP)/(HLX) to Shut Down Flight Operations October 7 after ‘Massive’ Flight Crew (FC) Shortage," by Kurt Hofmann hofmann.aviation@netway.at, October 6 2016.

German leisure carrier TUIfly (HAP)/(HLX) has decided to completely shut down flight operations Friday, October 7 after many airplane flight crew (FC) called in sick on short notice October 6, a spokesman confirmed. The action follows concerns about a partial merger between the 2 companies.

On October 7, TUIfly (HAP)/(HLX) had to cancel 47 out of 110 planned flights and airberlin (BER) canceled 90 flights. (HAP)/(HLX) canceled 108 flights, comprising 54 flights leaving from Germany and 54 from tourism destinations throughout Europe.

(HAP)/(HLX) again will charter airplanes from other carriers to bring tourists back. The company said it is working to reduce the impact on passengers after many flight crew (FC) members again called in sick on short notice.

(HAP)/(HLX) also said it expects further flight cancellations.

January 2017: * Abu Dhabi-based the Etihad Aviation Group and German holiday company the (TUI) Group (TUG) will reportedly name the planned European leisure airline group FlyNiki (NKI), a source involved in the negotiations said. The source said the new (NKI) operations should start by the end of March or April, beginning with the European summer season. The new leisure airline group will be headquartered in Vienna. (NKI) is expected to operate 60 aircraft on point-to-point services to key tourist markets.

March 2017: airberlin (BER), which has transferred its leisure routes to Austrian subsidiary FlyNiki (NKI), said the 1st (NKI) Dusseldorf - Palma de Mallorca service began on March 26.

The switch is part of a rescue program for Oneworld (ONW) Alliance member airberlin (BER), which announced the sale of 49.8% FlyNiki (NKI) to Abu Dhabi-based Etihad Airways (EHD) for €300 million/$320 million in December 2016.

Airberlin (BER) reported a 2015 3rd-quarter loss of -€45.6 million/-$51.2 million, reversed from a +€56.2 million profit in the year-ago quarter. “I expect the 4th quarter will also deliver very negative results,” according to a (BER).

FlyNiki (NKI) will operate from Dusseldorf to 16 destinations in Spain, Portugal, and the Canary and Greek Islands. Palma de Mallorca, for example, will be served by 7 non stop daily flights.

Airberlin (BER) launched its 1st route in 1979 from Berlin to Palma de Mallorca.

Airberlin (BER) (CCO) Götz Ahmelmann said, “It is a matter of great importance to us that we are handing over the baton to our partner FlyNiki (NKI) who will operate flights to holiday destinations on our behalf. For airberlin (BER), this marks an important milestone on its way to becoming a network carrier with a focused global route network and a unique portfolio of premium services,” he said.

“FlyNiki (NKI) is set to become the number 1 holiday airline in German-speaking countries,” (NKI) (CCO) Julio Rodriguez said.

As a result of this move, FlyNiki (NKI) will become the 3rd-largest airline in Dusseldorf after the Lufthansa Group and airberlin (BER), both in terms of passenger numbers and aircraft movements.

FlyNiki (NKI) will base 8 out of 21 Airbus A321s in Dusseldorf. 4 aircraft will be based in Zurich, taking over leisure routes from airberlin (BER)’s Swiss subsidiary Belair, which reportedly could close down in 2017. 5 A321s will be based in Vienna and the remaining ones will be spread out over several German airports such as Munich or Hanover.

FlyNiki (FKI) will wet-lease 2 Boeing 737-800s from Slovakia-based Go2Sky to cover summer peaks.

Airberlin (BER) will use Dusseldorf as a hub. During the summer 2017, (BER) will fly to 38 destinations from Dusseldorf including routes to the USA and the Caribbean.

FlyNiki (FKI) is part of a planned European leisure airline group to be established by the Etihad Airways Group and German holiday company the (TUI) Group (TUG), pending regulatory approval. The new leisure airline group, which was announced in October 2016, is expected to be headquartered in Vienna. The carrier plans to operate 60 aircraft on point-to-point services to key tourist markets and would have a 35% market share in the Germany/Austria/Switzerland leisure business.

June 2017: "Etihad, (TUI) Group Calls Off Plans for New Leisure Airline" by Kurt Hofmann hofmann.aviation@netway.at, June 8, 2017.

The Etihad (EHD) Aviation Group and German holiday company the (TUI) Group have ended plans to establish a new European leisure airline group. “I can confirm that negotiations on this project, which have been on hold since the end of 2016, have ended.”

In October 2016, the partners detailed plans to combine the leisure operations of the airberlin (BER) group and German carrier (TUI)fly (HAP)/(HLX) into a new airline group, serving destinations from Austria, Germany and Switzerland. (BER) was expected to operate 58 aircraft on point-to-point services to key tourist markets.

The Etihad Aviation Group also confirmed it terminated negotiations with the (TUI) Group, saying it has taken this decision following many months of negotiations in good faith. However, Etihad (EHD) said the parties had been unable to reach agreement on the final nature of such a joint venture (JV).

A source close to Austria-based FlyNiki (NKI) said the news from Abu Dhabi came as shock. Both brands: TUIfly (HAP)/(HLX) and FlyNiki (NKI) already operate in parallel with around 60 aircraft in the current summer period. “It is a clever strategy to create a strong European leisure-airline because there is too much capacity in Germany. But FlyNiki (NKI) is not available anymore,” (TUI) (TUG) board member Sebastian Ebel said June 7. “We will continue to push ahead with the repositioning of TUIfly (HAP)/(HLX) in order to develop a long-term perspective for the airline and its employees.”

According to Etihad (EHD), the leisure operations of the airberlin (BER) group will now continue to operate as a separate business unit under the FlyNiki (NKI) brand. Further details of this structure will be announced by airberlin (BER). (NKI)’s operating schedule remains unchanged with all bookings being honored; however, customers should contact (NKI) directly for any further information.

On December 5, 2016, Oneworld (ONW) Alliance member airberlin (BER) announced the sale of 49.8% of its Austrian subsidiary FlyNiki (NKI) to Abu Dhabi-based Etihad (EHD) for €300 million/$320 million), an investment that is important for financially troubled airberlin (BER).

At this point in time, it remains unclear what will happen with the €300 million (EHD) has already given to airberlin (BER).

The original plan had called for (TUI) AG (TUG) to hold 24.8% of shares in the (JV), with (EHD) holding a 25% stake. The remaining 50.2% shares will continue to be held by FlyNiki (NKI).

Fleet:
(definitions)

Click below for photos:
TUG-757-ECODEMONSTRATOR-2015-03.jpg
TUG-787-2010-04

June 2017:

THE TUI TRAVEL GROUP (TUG) CONSISTS OF:

ARKE (HOL) ALSO REFERRED TO AS "TUI AIRLINES NEDERLAND."
CORSAIRFLY (COR)
HAPAGFLY (HAP) - NOW TUIFLY.COM (HAP)
HAPAG LLOYD EXPRESS (HLX) - NOW TUIFLY.COM (HLX)
JET4YOU (J4U)
JETAIRFLY (TUB)
THOMSON AIRWAYS (ATZ)/(TFY)
TUIFLY NORDIC (TNS)

Management:
(definitions)

DR MICHAEL FRENZEL, CHAIRMAN, (TUI) TRAVEL GROUP.

HENRIK HOMANN, MANAGING DIRECTOR AVIATION, (TUI) GROUP (TUB).

PETER LONG, CHIEF EXECUTIVE OFFICER (CEO) (TUI) TRAVEL GROUP (TUB).

JOHAN LUNDGREN, DEPUTY (CEO).

TUI AIRLINE MANAGEMENT (TUG):

DR RALF CORSTEN, CHAIRMAN (HAM) (TUI) GROUP (TUG) (1999-10).

KEVIN HATTEN, (CEO) (TUI) GROUP (TUG) (kevin.hatten@tui-airlines.com)
(nicole.pruesse@tui-airlines.com) (2002-12).

PASCAL DE IZAGUIRRE, (CEO) (2010-10).

MS CHRISTINE BROWNE, CHIEF OPERATING OFFICER (COO) (TUI) GROUP (TUG) AVIATION DIVISION (2014-06).
Chris was previously Managing Director, Thomson Airways (ATZ)/(TFY).

DR RAINER KAESELAU, DIRECTOR FLEET MANAGEMENT (TUG)
(rainer.kaeselau@tui-airlines.com) (2002-12).

CHRISTIAN COMMISSAIRE, DIRECTOR FLIGHT OPERATIONS,
(christian.commissaire@tui-airlines.com)
(corinna.hermstorf@tui-airlines.com). (2002-09)

CAPTAIN THOMAS SCHEEL, DIRECTOR FLIGHT OPERATIONS (Thomas.Scheel@hlx.com).

BERNARD NEWTON, DIRECTOR TECHNICAL
(bernard.newton@tui-airlines.com). (2002-09).

STEVE WOODS, DIRECTOR BUSINESS DEVELOPMENT.

CHARLES GURASSSA, EXECUTIVE CHAIRMAN (TUI) NORTHERN EUROPE & PREUSSAG AIRLINES (2001-10).

PETER ROTHWELL, (CEO) (TUI) NORTHERN EUROPE (2001-10).

FRASER ELLACOTT, DIRECTOR ENGINEERING (TUG)/(TFY) (2014-06).

CHRIS MOTTERSHEAD, MANAGING DIRECTOR, (TUI) UK (2001-12).

CAPTAIN JOHN MURPHY, MANAGING DIRECTOR THOMSON AIRWAYS (ATZ)/(TFE).

VOLKER BOTTCHER, MANAGING DIRECTOR, CENTRAL EUROPE.

 
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