TUI / Thomson buy Coventry Airport
TUI, the German travel giant that owns Thomson Holidays and Lunn Poly, will reveal an unusual departure today when it acquires control of West Midlands International Airport — otherwise known as Coventry airportThe deal, announced to staff last night, is believed to be the first instance of a tour operator taking on ownership and management of an airport.
The acquisition comes just weeks before TUI launches Thomsonfly, a low-cost airline with four aircraft flying out of Coventry to eleven holiday destinations in the Mediterranean and the Channel Islands, starting from March 31.
The company’s website is advertising flights to destinations such as Nice, Venice and Marseille from £8.99 excluding taxes and charges, and for £13.99 to Malaga. The cheapest flights, starting at just £3.99, are to Jersey.
TUI, which entered the UK in 2000 through the £1.8 billion acquisition of Thomson Travel Group, is expected to press ahead with plans by the airport’s owners, Air Atlantique, to update the site and build a £3 million terminal.
Despite its proximity to East Midlands airport, home to bmibaby, the budget offshoot of bmi, TUI is confident of strong bookings from the five million people who live within an hour’s drive.
Air Atlantique, best known as a cargo carrier, took over the airport in 1998 from Coventry City Council with a 150-year lease. But sharp criticism has been directed at its management of the airport and TUI’s arrival should improve the odds on Warwick District Council approving the new terminal.
It is understood that TUI has become increasingly frustrated at the threat to Thomsonfly’s plans posed by the breakdown in relations between Air Atlantique and the local authorities. The company is believed to view taking over the airport as the best way of preserving its position.
A source close to TUI said that the tour operator had no intention of buying any other airports and described the cost of buying and redeveloping the airport as “minimal in the context of the size of the company”.
Last edited by LTNman; 19th Feb 2004 at 07:07.