Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

German airline TUIfly says no plans to link up with easyJet

Published 23/09/2016, 17:10
© Reuters. People pass the logo of German travel company TUI AG at the company's headquarters in Hanover
EZJ
-
LHAG
-
TUI1n
-
AB1
-

BERLIN (Reuters) - TUIfly has denied suggestions that the German airline is planning to link up with Britain's easyJet (L:EZJ) but declined to comment directly on a report that another European airline was interested in buying the airline.

A German magazine report said on Thursday that easyJet was close to taking a stake in TUIfly, part of travel and tourism group TUI (L:TUIT), as a way to secure flying rights within the European Union should Britain leave the EU and not agree access to the bloc's single aviation market.

But a TUIFly board member representing the labour force said on Friday a second European carrier could be interested in buying the airline, part of travel and tourism group TUI (L:TUIT).

"There's another European airline to whom TUIfly could be sold," Martin Locher, a TUIfly pilot and supervisory board member told Reuters on Friday.

He declined to name the airline, but said it was a non-EU carrier. He also said it was not clear if talks with easyJet were continuing.

In response TUIfly management said in a letter to employees, "A partnership or easyJet taking a stake in TUIfly is not being prepared, nor is this planned".

EasyJet declined to comment while a TUI spokesman declined to comment directly on the second European airline.

TUIfly has 41 planes, 14 of which are currently operated by loss-making Air Berlin (DE:AB1). Sources have told Reuters that Lufthansa (DE:LHAG) and Air Berlin (DE:AB1) are in talks over Lufthansa renting around 40 Air Berlin planes and crews for use by its Eurowings subsidiary, with a decision expected next week.

"Given the difficult financial situation at Air Berlin, we are regularly in contact with Air Berlin, plus with other airlines and partners and exploring opportunities for cooperation," TUIfly added.

Both Locher and Andreas Barczewski, a member of the TUI Group and TUIfly supervisory boards, said any sale of TUIfly against the wishes of employees and unions would be resisted.

Management at TUI is reshaping the travel group, which was created in 2014 by the merger of London-listed TUI Travel and German majority owner TUI AG and is focusing on its tour operations, hotels and cruises.

Along with TUIfly, the TUI Group also includes airlines Thomson Airways, TUIfly Nordic, ArkeFly and JetairFly. TUI has said it is targeting 50 million euros (£43.33 million) in operational improvements at its airlines by the 2018/19 financial year.

Chief Executive Fritz Joussen said in August TUI was seeing pressure at the German airline due to overcapacity in the market.

© Reuters. People pass the logo of German travel company TUI AG at the company's headquarters in Hanover

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.