TUI’s chief executive of aviation Kenton Jarvis:
“In the UK we’re looking to add capacity,” Jarvis explains. “So we’ll be adding a lot of seats in the UK – 10, 12, 13, 14 aircraft will come in to add that capacity in the UK, because obviously Thomas Cook had 33 aircraft [in the country], so if we take our natural 30-35% market share that gives us a good opportunity to grow there.”
For its 2020 fiscal year, beginning 1 October 2019, the operator expects “an underlying EBIT range of between approximately €950 million [$1.05 billion] to €1.05 billion, which includes an approximate €130 million cost impact from the 737 Max grounding, assuming a scenario whereby the Max returns to service by end of April 2020”. Should the Max not return by end-April, however, and TUI “has to plan for a continued grounding for the remainder of FY20”, the group assumes “a further cost of between approximately €220 million to €270 million”.Neither scenarios take into account potential compensation from Boeing.
TUI aviation chief Kenton Jarvis on Boeing 737 Max grounding and Thomas Cook’s collapse