Hapagfly
 

TUI Says It Will Merge Hapagfly, Hapag-Lloyd Express Airlines


Aug. 31 (Bloomberg) -- TUI AG, Europe's largest travel company and the owner of the Hapag-Lloyd AG shipping line, said it plans to merge the Hapagfly and Hapag-Lloyd Express airlines to reduce costs.
The company is also examining ``further strategic options'' in the German aviation market, the Hanover, Germany- based company said in an e-mailed statement today.
Chief Executive Officer Michael Frenzel aims to almost double tourism earnings in two years by reducing costs, opening hotels and expanding the Hapag-Lloyd Express and Thomsonfly low-cost airlines. TUI bought CP Ships for $2 billion to cut the dependence on seasonal tourism profit and create the world's fifth-largest shipper.
``In order to ensure that result targets in the tourism division are met, even though margins remain under pressure, further efficiency improvements are being realized,'' the company said in the statement.