Company Watch - TUI Travel Group

Dec 18, 2006

Boeing had not announced the TUI order. TUI will operate 56 aircraft next year and expand capacity 27%. It displayed a mockup of TUIfly.com's new all-yellow livery on its website. The new aircraft, which were not identified, will begin delivery in 2010 and will be replacing older leased planes until 2013. TUI still has 24 737s on order with Boeing, bringing its backlog to 65 aircraft. Dec 18, 2006

German tourism giant TUI AG unveiled a comprehensive "action plan" Friday that includes an order for 41 new aircraft from Boeing valued at $3.64 billion, its intention to cut costs next year by [euro]250 million ($330 million)--involving the elimination of 3,600 jobs--and the merger of its airline units under the new TUIfly.com brand. Dec 18, 2006

TUI to merge airlines, buy 41 aircraft, cut 3,600 jobs. TUI said regarding its cost-cutting program, savings of [euro]150 million will come from materials and [euro]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 more than 3,300 new jobs will be created "by certain segments" in 2008. It also intends to reduce corporate costs to [euro]70-[euro]80 million from [euro]112 million by 2008 and merge its TUI Deutschland operating business into TUI AG. It is targeting a 2008 profit of [euro]450-[euro]550 million. Dec 18, 2006

TUI confirmed speculation that Hapagfly and Hapag-Lloyd Express will combine under the new name "in order to secure access to the low-cost, Internet and modular tour growth markets," with the remaining five TUI airlines (Thomsonfly, TUIfly Nordic, Arkefly, Corsair and Jetair) joining the fold in 2008. The strategy will have an earnings impact of [euro]60 million by that time, the company said. "With TUIfly.com, a European brand, it will be easier to address customers. At the same time, the new brand...will be an essential element of TUI's new Internet strategy," it said. Dec 18, 2006

TUIfly.com could be the new name of the combined fleet of German carriers Hapagfly and LCC HLX. German media quoted a TUI management source as saying that the first repainted aircraft will be presented at a hangar in Hannover. TUI is expecting the combined airline to generate [euro]40 million in savings at the cost of up to 200 jobs. It operates 56 aircraft. Dec 15, 2006

Editor: Aram Gesar, eMail: edit@AirGuideOnline.com

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Dec 11, 2006

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