TUI buys back Swiss arm

TUI AG, has bought back from Kuoni Reisen Holding AG the shares it held in the company’s Swiss operations. Kuoni has held the 49% share in TUI Suisse since October 1999, but the recent deal means TUI AG resumes 100% ownership. The purchase price has been kept confidential. TUI Suisse has a distribution network comprising 70 of its own travel agencies and around 1,000 distribution partners in the French and German speaking parts of Switzerland. The two companies will continue to cooperate over TUI Hotels, distribution in the Swiss market, and Kuoni’s carrier Edelweiss Air, despite the demerger. TUI AG executive board chairman Dr. Michael Frenzel, said: “We again have complete independence in the market without having to dispense with the advantages of the previous partnership.” TUI has made more announcements elsewhere is Europe. The travel group will launch a Belgian charter carrier on 1 April to be sister company to its Belgian tour operator, Jetair. TUI Airlines Belgium will fly shorthaul and mediumhaul routes including include Spain, Portugal, Greece, Tunisia, Morocco, Egypt, Cyprus, Bulgaria, Croatia, Malta, and Italy. From June it hopes to expand its network to longhaul, flying to holiday spots like Dominican Republic, Mexico, Cuba and Jamaica. According to a TUI spokeswoman in Belgium, JetAir used to fly passengers with Sobel Air, which ceased trading at the end of last year. TUI currently uses Thomas Cook Airlines and LTU to fly its holidaymakers. TUI Belgium is the largest Belgian tourism company, and posted a turnover of 874 million euros in 2002. Report by Ginny McGrath