TUI Travel PLC and Air Berlin PLC are to enter into a long-term strategic partnership for their German flight business. A corresponding agreement was signed today. The agreement is based on a cross ownership in which TUI Travel PLC through a subsidiary, will have an interest of 19.9 percent in Air Berlin PLC and vice versa Air Berlin PLC will hold 19.9 percent of Hapag-Lloyd Fluggesellschaft mbH/TUIfly. The Supervisory Boards of Air Berlin, TUI Travel PLC and TUI AG have already approved of the plan. Provided the competition authorities approve of our intention, the transfer of economic responsibility will take effect as of 1 October. Until then nothing will change for the customers of both airlines. When the agreement is coming into effect the former TUIfly city routes will be operated under the flight number and product standard of Air Berlin . The tourism business will be marketed unchanged under the TUIfly brand.
The central component of the agreement is for the previous city flight business of TUIfly to be transferred to become the commercial responsibility of Air Berlin starting with the winter flight schedule 2009/10. Of the in total 38 aircraft that TUIfly will operate from 2010, 17 planes will be chartered to Air Berlin via a long term wet lease (i.e. including the crews). The remaining 21 aircraft will be operated in future under the TUIfly brand purely for TUI Deutschland tourism flights.
The advantages of the alliance from TUI’s point of view:
Peter Long, CEO TUI Travel PLC:
“I am delighted to have agreed a commercial deal which not only optimises our tour operator programme in Germany but also minimises the disruption to our colleagues within TUIfly, who despite the recent uncertainty, have continued to deliver an excellent performance in the airline. Going forward, I look forward to a successful strategic partnership with Air Berlin.”
Volker Böttcher, Managing Director Central Europe TUI Travel PLC:
For the staff at TUIfly the alliance with Air Berlin represents the best possible way to go. This means TUI Travel keeps a majority interest in the airline a nd o nly a very few jobs will be lost. That is something that nowadays cannot be valued too highly .
The advantages of the alliance from Air Berlin ’s point of view :
Joachim Hunold, CEO Air Berlin :
This strategic alliance gives Air Berlin access to three economically highly interesting markets: Cologne , Stuttgart and Italy . In this manner, Air Berlin can expand its European as well as its domestic route network, which is especially important to our business passengers. At the same time the position of TUIfly and Air Berlin will improve in this challenging economic environment.
Joachim Hunold:
The corporate integration will strengthen both companies, allowing them to further expand their positions in a consolidated European airline market.
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