Special Events after the Closing Date

Closure of Europe’s airspace by ash cloud from volcanic eruption in Iceland
As a result of a volcanic eruption in Iceland, large parts of Europe’s airspace were closed from 15 to 21 April 2010 due to the volcanic ash cloud. The associated flight disruptions had an adverse impact on the scheduled implementation of the TUI Group’s tourism business. In total, more than 180,000 TUI customers in resorts were af­fect­ed. Holiday extensions or alternative return options from their holiday regions were organised for customers in resorts. Furthermore, more than 175,000 TUI trips were cancelled; these customers were offered to cancel their holidays free of charge. The cumulative cost resulting from the airspace closure for the TUI Group’s earnings currently amounts to around €100m. The largest portion relates to the activities of the TUI Travel Group. As the earnings effects associated with the closure of airspace are one-off in nature, they will be disclosed separately in the interim statement for the third quarter of 2009/10.

TUI Travel PLC issues convertible bond
On 19 April 2010, TUI Travel PLC successfully placed £400m of convertible bonds. The bonds have a maturity of seven years and will be used to refinance maturing bank facilities in advance of the due date and create leeway for acquisitions.

TUI AG has subscribed for 50% of the convertible bonds. The purchase of the convertible bonds has been fully refinanced via a three-year financing arrangement with Deutsche Bank. A mechanism has been put in place to always secure TUI’s voting rights majority in TUI Travel in the event of any third party conversions.