Monarch Choice or First Airlines??
 

Or basically just Monarch First!!

Have a read of this....

http://www.ft.com/cms/s/f8ed35b2-d36...b5df10621.html

:cool:

Not again.....
 

Here we go again.....:ugh:

Have to speak to the wife, she works for First Choice.
She if she can get hold of any goss.

Seems like the charter airlines/Travel companies are all in talks to merge.

I think it shows how much competion there is now with the airlines.

It's OK; I just asked her. She doesn't know anything about it.

very well done!!!
:D :D :D

She said basically the same to me as well.;)

WayHay :8

I have stumbled across the comedy store, Shame though I have seen more inteligence and humour in Borrat :8 ;) :D

Nice One Guys :}

Before this turns in to some sort of ... joke ... let's look at the serious elements of such a merger. Whilst regrettably there would obviously be job losses and route cuts as with any merger, from a business standpoint surely this makes a lot of sense, and fits in with the view that the industry is merging into fewer bigger players - which Globus will want to be a part of. This merger would allow Cosmos to merge with the mainstream First Choice market, creating a stronger player in the package tour market. From an airline perspective, which is what we're interested in here on PPRuNe, this would see two airlines with similar fleets merging, bringing in First Choice's successful longhaul product and regional bases with Monarch's Monarch Scheduled service to create a more competitive rival to the new Thomas Cook and TUIfly.

New today:

MAX

I would be very supprised if they get comption approval for that

TUI (Thomson) and First Choice merger ????
 

TUI and First Choice merger ?????

http://news.google.co.uk/news?q=tui+...=news&ct=title

FT. Sunday March 18 2007 19:24

Tui set for tour business merger.

By Roger Blitz in London and Ralph Atkins in Frankfurt.

The Tui board was on Sunday expected to agree to merge its tour operating business with First Choice a move that would see Europes four leading tour operators consolidate into two in just over a month.

The German-based operator, whose brands include Thomson Holidays of the UK and the pan-European Airtours, would take a 51 per cent stake in a business to be called Tui Travel, according to people close to the proposed deal, creating Europe,s largest tour operator.

First Choice would take the remaining 49 per cent and Peter Long, its chief exeuctive, would run the merged company, which would take over First Choice,s London listing. Michael Frenzel, chief executive of Tui, would be the new company,s chairman.

Tui shipping and other interests would be run separately from its Hanover base. Mr Frenzel has repeatedly resisted calls to split up the group.

Tui supervisory board was locked in talks which began on Sunday afternoon, but the company declined to comment.

The combined group, which unites the number one and number three tour operators in Europe, would have annual revenues of more than £10bn, and expect to have made synergies of £100m by the third year of operation.

The deal is a mirror image of the merger agreed by Thomas Cook and MyTravel, the second and fourth biggest operators whose merger was agreed last month.

The Thomas Cook-MyTravel merger, another German-British combination, killed off First Choices hopes of selling its tour package business, called Mainstream, to either party in order to focus on specialist and adventure holidays.

Both mergers could come to the attention of the European Commission which last looked at competition in the tour operating business in 2000. The industry has since been fundamentally changed by the impact of low-cost airlines and the internet which has revolutionised consumers behaviour in booking holidays.

Like other tour operators, Tui has been under pressure to boost the performance of its travel business activities. But Tuis shipping divisions have also faced restructuring costs and pricing pressures.

In December, Tui signalled it might report a loss for the year and announced that the group would skip a dividend payment. Earlier in the month, it had announced 4,000 job cuts, mostly at Thomson Holidays, reflecting the poor state of the UK travel market.

First Choice, with a market value of £1.4bn, earlier this month reported winter holiday revenues up 12 per cent and said it has exercised options to buy four Boeing 787 airliners to add to its fleet of 32 planes. It also paid £30m for three activity holiday companies.

JPMorgan last month said European tour operators could expect continued good growth and were adapting their strategies to changing circumstances.

In not sure just how true First Choice are to their word but this time last month they released a statement saying and I 'quote' "Talks regarding the possible sale of its Mainstream business have been terminated."

TUI also stated not so long ago that it had no interest in First Choice.
Besides which, if TUI and FC where to merge, I cannot see it getting much further then the EU Commission for Competition.

You never know though, but I can't see it happening.

It didn't take long for the rumour's to start again though did it?

I think the merging of the tour operators makes a lot of sense as they both target the same kind of customer, and Thomsonfly is well-established in the low-cost, shorthaul market, whilst First Choice have very efficiently marketed their longhaul product with the launch of some exciting destinations and a fresh product. From an airline operation point of view though, how well mixed are their fleets?

bmibaby.com.
Very well matched, TUI is all Boeing and FCA is mostly all Boeing, it has only 10 Airbus A320/A321 series aircraft left.:ok:

Tui & First choice to merge tour ops
 

TUI 'to merge tour operations with First Choice'

TUI was today reported to be on the verge of merging its tour operations with First Choice to create Europe's largest tour operator.

The expected deal follows Thomas Cook merging with MyTravel and will result in consolidation of Europe's mainstream tour operating businesses from four to two.

German TUI AG will take at 51% in a business to be called TUI Travel, reports this morning suggested. First Choice would take the remaining 49% with chief executive Peter Long running the merged company.

The new look group would have 7.2 million customers, sales of £12 billion and a market value of more than £3 billion.

But cost savings are bound to be sought as part of the deal, raising the prospect of further industry job losses.

First Choice had been talking to both MyTravel and Thomas Cook about the sale of its mainstream tour operating arm until the two rivals agreed to get together less than a month ago.

TUI/ First Choice
 

BBC are reporting this morning a merger between the two companies.

But is it a first choice?

Does not leave many choices for the public who still wish a 'traditional' holiday. ThomasCook/MYT or Thomson/FC - thats about it !

seems strange that at TUI were being told the shorthaul market is shrinking and we need to offer more web based seat only sales and they are tieing up with another shorthaul operator!! at TUI they are trying to change the cabin crew terms and conditions and bring them back to cap371, which is what i believe FC work to!!doesn't sound too healthy for the staff at TUI!

Shrinking! go north young man, go north.....



http://www.youtube.com/watch?v=xltubD9wRYE

Would be nice to get some info from the company. Who has the majority stake FC or TUI?

TUI 51% FC 49%

Wonder what this will mean for the supposed 757 fleet shrinkage at TFly.... Believe FC have got another 18 or so!

Cheers,
Shortcut

Stock Exchange Announcement
 

The Boards of First Choice Holidays PLC ("First Choice") and TUI AG ("TUI") are pleased to announce the creation of one of the world's leading travel groups, TUI Travel PLC
TUI Travel PLC is being created through a recommended merger of First Choice and the Tourism division of TUI, excluding certain hotel assets ("TUI Travel")
The new group will have approximately 27 million customers in 20 source markets. It will be headquartered in the UK and application will be made for TUI Travel PLC's shares to be admitted to listing on the Official List and to trading on the London Stock Exchange
TUI Travel PLC will have proforma revenues of £12.1 billion (€17.6 billion), EBITDA of £554 million (€809 million) and EBITA of £325 million (€475 million)
First Choice and TUI believe that the Merger will deliver pre-tax cost benefits of at least £100 million (€146 million) per annum to be fully realised within three years of completion. The cost synergies are prior to any benefits expected from the existing TUI Travel restructuring programme
TUI Travel PLC will be chaired by Dr. Michael Frenzel (Chief Executive Officer of TUI), deputy chaired by Sir Mike Hodgkinson (Chairman of First Choice) and managed by Chief Executive Officer Peter Long (Chief Executive of First Choice), Deputy CEO Peter Rothwell (CEO TUI Northern Europe) and Chief Financial Officer Paul Bowtell (Group Finance Director of First Choice)
The strong strategic fit of the businesses combined with a leading management team provides the opportunity to create one of the world’s most profitable travel groups by delivering sustainable revenue and long-term earnings growth while deriving cost advantage from leveraging both synergy opportunities and economies of scale to enhance margins
TUI Travel PLC will have extensive content, multiple distribution channels and the cost advantage to compete in a dynamic and rapidly changing travel market. TUI Travel PLC will also be able to provide customers with the flexibility and choice they demand.
TUI Travel PLC will be 51 per cent. owned by TUI and 49 per cent. owned by the existing shareholders of First Choice (calculated on a fully diluted basis)
TUI will also contribute €875 million (approximately £600 million) of net financial debt, including all pensions liabilities currently associated with TUI Travel, to the new group
The Merger will be effected through the acquisition by NewCo of both First Choice and TUI Travel (First Choice by means of a scheme of arrangement). It is expected that the Merger will be completed in the third quarter of 2007
The Merger is conditional, inter alia, upon the approval of First Choice Shareholders and approval by the relevant anti-trust authorities. The Board of First Choice and the Supervisory Board of TUI have approved the Merger. While TUI shareholder approval is not required, First Choice shareholder approval will be sought at the Court Meeting and an Extraordinary General Meeting to be convened in due course. The directors of First Choice unanimously intend to recommend to First Choice Shareholders that they vote in favour of the Merger, as they intend to do in relation to their own shareholdings.

TUI Travel will focus on four areas:

*Content - mainstream package holidays, including long haul, a specialist portfolio of niche businesses and a significant bed adn flight bank accessed vai the internet.

*Distribution - the new group will "maximise interent sales and content" while building dtrong brand awareness and loyality through its portfolio of large consumer brands.

*Cost competitiveness - it will introduce a flexible leasing structure to its European aircraft fleet, "leveraging the low overheads in the specialist portfolio".

*Acquisition - group will continue to invest in small to medium-sized bolt-on acquisitions within specialist segments in order to build leadership positions in higer margin niche areas.

Current TUI Northern chief financial officer Will Waggott will become group commerial director of the new company while Hapag-Lloyd Flug chairman Christoph Mueller will become aviation director. First Choice group finance director Paul Bowtell will be chief financial officer.

On the basis that TUI paid £1.8bn for Thomsons some years ago and added it to their German operation it doesn't seem to have been a good deal for the TUI.

I wonder if heads will role in Germany?

I guess this explains why Tfly didnt bother ordering the 787.:}

MAX:cool:

Their press release says the airline will have a combined fleet of 23 Boeing 787's.

Predictable that First Choice was going to join forces with someone after the TCX/MYT merger. Couldn't have found a bigger friend in the business.

olbalboy,

FCA have been moving away from shorthaul over the last five years. with 6 767's currently flying and 12 787's on order theyre not predominantly a short haul operator.They have been trying to get away from the typical short haul market and move into more specialist markets. More importantly FCA has had many consecutive years of profitability in a dog eat dog market.

Good luck to all the people at FCA and TUI.

The guys from First Choice must be pleased. Hopefully they will get all of our T+C's and Balpa agreements.

Thomson UK has been miss-managed at the top, interesting to see FC CEO Peter Long has beaten the less brilliant Peter Rothwell into the top spot. Unfortunately Christoph Muller (ex Swiss air, Sabina) is still incharge of airline straegy. But good to see Will Waggot is Group Commercial Director.

I am sure merging the airlines seniority is along way off:ugh: . Interesting times.

Jet2.....for 23 x 787's did you mean to say 757's??
Dogma i think you have made a sensible statement in that it should be good for both TUI and FC pilots. It is well known that you have excellent terms and conditions and I have to say FC has a good management team with an excellent track record in the City. So a pooling of the good bits seems not only sensible but also to the benefit of all.

Indeed Westie, looks good from both sides at the coalface (we might even get hats!) but I fear that our interpretation of the good bits will be the polar opposite of the management idea of good bits. Standby for the attempt by inept managers to oust the good guys and reduce T&Cs to the lowest common denominator.

Oh, and a yellow aeroplane with a pink bird turd?

See you around the bars!

Role on CAP371! :mad:
I knew Avril whats her name would get her own way in the end! :mad: :{

A plea to both CC's

Please don't let this degenerate into any sort of us and them bunfight.

Both Airlines have very good reputations and there are lots of positives. I hope we can make the sum greater than the two parts.

Pete McCambridge
FCA

I also noted that on the webcast just made my Peter Long (FCA). Unless TUI have ordered 11x787's??

Now makes a total fleet of 156 aircraft!!

Westie

Nope ... look at page 11 of the press release link that I posted. It says "a long haul programme with 23 Boeing 787's".

If First Choice was to find a buyer/partner/merger, I'd imagine that most would have TUI high up on the desired list. As Pete McC says, I sincerely hope it's a friendly alliance with all at TUI. Both companies are looking for the merger to be completed by the third quarter of 2007.

Blimey!!!

From 4 operators to 2 in the space of about 2 months!

This is good news for both companys, especially with PL at the top. My only concern as a FC Airbus pilot is that Thomson is a very Boeing orientated company, and being that they are the majority holder, what is the future for FCAs Airbuses.:confused:

I think there is going to be inevitable catfights and us/them mentality, look at the Orion/BY merger a few years back. It caused no ends of headaches for certain groups and individuals with regards to seniority.

Thomsonfly is a very seniority oriantated airline(i cannot speak for FCA), therefore how do we procede further? the only fair way? and merge the seniority lists? what happens to the IFS/CM/SCC at FC/Tfly that are less senior? after years of working for thier individual companies do they get a demotion through no fault of their own? that then starts bitterness. What about FCA? they have some fantastic trips... will their crews resent us doing "their" long haul to the exotic destinations that Tui do not serve?

There are a lot of issues to cover over the next year or so and yes its exciting times. However we will not be able to avoid the catfights and i think it will get worse before it gets better.

lets not delude ourselves that this is going to be a bed of roses. but what ever happens lets hope our jobs are safe. That is the most important thing to remember, not what is on our name badge or where we get our suntan.

safe flying guys!

Jet2 ok i take it all back....loads of longhaul then!
FLAP5 you could argue that FC as it is at the moment is Boeing oriantated. I would guess that as the Airbus's are subject to lease agreements, then nothing will happen in the short term. Whilst the 320/321 cannot match the 757 for range, it does have efficiency advantages so I don't think they will just be placed on the scrapheap just yet.

Once the Investment Banks and Corporate Lawyers have been paid their huge fees will there be enough in the pot to get the Britannia Pension, (TUI,TFly,Thomson Fly) with its deficit of around £93.5 Million fully funded!!?? How is the funding of the First Choice Pension I wonder?