Special Events in the Quarter under Review

In the first quarter of 2009, TUI AG closed the sale of Hapag-Lloyd AG to ‘Albert Ballin’ Holding GmbH & Co. KG. The shipping company was sold at an enterprise value of €4.45bn. TUI AG, in turn, acquired a 43.33% stake in the bidding company. The sales transaction created a book profit of around €1bn within the Group.

With the transfer of ownership, TUI AG received an inflow of liquidity of €1.6bn. In order to guarantee the financial stability of the Hapag-Lloyd Group even after the transfer of ownership, TUI AG provides additional credit facilities with a total volume of up to €1.1bn for a limited period at customary market terms and conditions. TUI expects that most of these facilities will be used.

In the first quarter of 2009, TUI Travel PLC and Air Berlin PLC agreed a long-term strategic partnership for their German airline business. The centrepiece of the agreement is for Air Berlin to assume operational responsibility for TUIfly’s previous city business as of the 2009/10 winter schedule. Of the 38 aircraft TUIfly intends to utilise as of 2010, 17 aircraft including crews will be chartered to Air Berlin on the basis of a long-term lease agreement. 21 aircraft will continue to fly under the TUIfly brand and be utilised for TUI Deutschland.

In this connection, a cross-shareholding agreement is planned in which TUI Travel PLC will take a 19.9% stake in Air Berlin PLC and vice versa, Air Berlin PLC will take a 19.9% stake in Hapag-Lloyd Fluggesellschaft mbH (TUIfly). If this project obtains antitrust approval, it is to be implemented with economic effect as of 1 October 2009.