TUI Travel PLC to start trading on Monday
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TUI Business Update.
It has been a holiday from hell so far for investors in TUI Travel, the company formed from combining the Thomson Holidays with the UK's First Choice. It is not easy, given the competition from low-cost airlines.
TUI said that it was also considering scrapping TUIfly, its struggling low-cost airline.
It has been a holiday from hell so far for investors in TUI Travel, the company formed from combining the Thomson Holidays with the UK's First Choice. It is not easy, given the competition from low-cost airlines.
TUI said that it was also considering scrapping TUIfly, its struggling low-cost airline.
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Airsurfer
Read nothing into a 5 year handling agreement other than that it has determined their costs over this period. I would place a LARGE wad that it has the standard 90 day termination clause within the agreement.
The CVT, BOH, DSA operations are developing loco markets. Do Tuifly/Thomsonfly have the background for developing this? or, are they specialist in a different sector?
Personally, I hope they stick with it but I would not put any money on the direction they are going on the basis of a small (and yes, it IS small in their terms) ground handling agreement at CVT.
GH
Read nothing into a 5 year handling agreement other than that it has determined their costs over this period. I would place a LARGE wad that it has the standard 90 day termination clause within the agreement.
The CVT, BOH, DSA operations are developing loco markets. Do Tuifly/Thomsonfly have the background for developing this? or, are they specialist in a different sector?
Personally, I hope they stick with it but I would not put any money on the direction they are going on the basis of a small (and yes, it IS small in their terms) ground handling agreement at CVT.
GH
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People here need to be totally aware that TuiFly is based in Germany and consists of HLX Express and one other I think. ThomsonFly is the low cost part of Thomson (now Tui Travel) and is just the seat only component part. Although some of ThomsonFly's low cost division is stand alone (BOH and CVT etc etc) some of the low cost bit operates on the charter 75's. Ie: Some of the 757s carry ThomsonFly low cost pax as well.
Im probably not explaining it very well, but Tui Fly and Thomson Fly are two different airlines owned (now) by the same company.
Im probably not explaining it very well, but Tui Fly and Thomson Fly are two different airlines owned (now) by the same company.
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The "question mark" I was refering to was the UK B737-300 operation - low cost airlines do not fit into Peter Longs portfolio. He will be doing his hardest to bring FC's margins back towards 5% instead of TOM's 2% - and he's achieved this by cutting back...and cutting back somemore...the very opposite of TOM, which is based on size...
Looking outside of the UK, Corsair..???? Mmmm..big savings to be had..
Looking outside of the UK, Corsair..???? Mmmm..big savings to be had..
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Will it definately be next March before FCA and TOM become one airline? I am flying with FCA to Punta Cana in December and really hope that I get to sample the First Choice long haul product before the airline disappears.
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Possibilities:
1) Merge all the TUI airlines in Europe + FCA (probably best under yet another unrelated brand) then spin it off as a seperate airline / company.
2) Same as above but keep long haul airline in the group.
3) Sell all airlines to an exisiting airline, lets say easyJet and enter into a long term deal with them to for TUI to provide hotels and other ancillaries to EZY and EZY to provide allocations and special rates on seats to TUI to sell on their packages.
4) Keep it all in house as now but continue the shift to medium and long haul
5) Use the new yellow planes to start a cargo operation in partnership with DHL
1) Merge all the TUI airlines in Europe + FCA (probably best under yet another unrelated brand) then spin it off as a seperate airline / company.
2) Same as above but keep long haul airline in the group.
3) Sell all airlines to an exisiting airline, lets say easyJet and enter into a long term deal with them to for TUI to provide hotels and other ancillaries to EZY and EZY to provide allocations and special rates on seats to TUI to sell on their packages.
4) Keep it all in house as now but continue the shift to medium and long haul
5) Use the new yellow planes to start a cargo operation in partnership with DHL
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Interesting one about EZY and hotels. Did you know that the hotel search engine on Easyjet.com is Hotelopia? And did you also know that Hotelopia is a Tui travel group company?
The airlines will become 'in effect' one airline when the AOC is merged about next April. This will not be an easy or quick process. Even after that, there is no firm decision on what will become of First Choice Airways or Thomsonfly (as airline brands). Anyone booked on either companys plane for the forseeable future will not notice any changes.
As regards the low cost part. It will be part of Peter Long's plan if he can make it make money, that is for sure. He did also say in one of his press releases that the merger will create an airline big enough to take on the locos. So it doesnt sound to me like he wants to start closing things down.
The airlines will become 'in effect' one airline when the AOC is merged about next April. This will not be an easy or quick process. Even after that, there is no firm decision on what will become of First Choice Airways or Thomsonfly (as airline brands). Anyone booked on either companys plane for the forseeable future will not notice any changes.
As regards the low cost part. It will be part of Peter Long's plan if he can make it make money, that is for sure. He did also say in one of his press releases that the merger will create an airline big enough to take on the locos. So it doesnt sound to me like he wants to start closing things down.
Last edited by Baron buzz; 28th Sep 2007 at 15:52. Reason: because im a tool
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First Choice also have a seat allocation on Thomsonfly selling holidays from Doncaster...this was announced last month so I assume that would be for Winter 07/08 and into Summer 08???
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Why don't they shut down the struggling TUIfly, pull out of Germany apart from the occasional charter and send the 737s over to Jetair, Thomsonfly-FCA and TUIfly Nordic? I would say Corsair but they aren't doing short-haul anymore are they? Simple solution isn't it ?!?
But I suppose Germany is where TUI started off so... probably not ?
What am I going to get for saying that ?!?
But I suppose Germany is where TUI started off so... probably not ?
What am I going to get for saying that ?!?
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I would not be suprised if thet try and do a deal and sell off or float TUIfly a bit like what Thomas Cook Group plc are doing with Condor/Air Berlin.
TC have been quite smart with that deal as DE were not making a profit, this way they own just under 30% of Air Berlin without the risk.
But will have to wait and see what TUI decide.
TC have been quite smart with that deal as DE were not making a profit, this way they own just under 30% of Air Berlin without the risk.
But will have to wait and see what TUI decide.
