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TUI/First Choice – ‘both parties to benefit’ but Germany to escape job cuts
First Choice CEO Peter Long says both partners will gain from the know-how of each other as further details of the merger plan with TUI emerged.
Long, who will assme day to day control of the new company TUI Travel PLC as CEO, said: “TUI is clearly the market leader in traditional beach package holidays.
“And over the past few years First Choice has successfully expanded in the modular avel segment and in certain niche markets, and in doing so, has achieved above average retruns.
“Both partners will benefit from the know-how of the other.”
TUI Travel will have revenues of £12.1 billion and an estimated EBITA of £325 million, handling at least 27 million holidaymakers.
The two companies confirmed that jobs in Germany will not be directly affected by the merger.
But they said it was “as yet uncertain” how many jobs overall will be lost – confirming previous indications that jobs in the UK will be at risk as the joint company seeks £100 million annual savings.
TUI AG chief executive Dr Michael Frenzel said: “At just the right time two strong partners are joining forces. TUI Travel PLC is clearly aiming at growth and simultaneously will make good use of the opportunities presented by the ongoing consolidation in the Euroepan travel market.”
He added: “We have used the past year to do our homework. many structural and operational measures have been started. Now we are fit for the future.
“By taking this step we are creating room to take positive action and are driving forwards the consolidation of the European tourism buisness.
“At the same time this undertaking underlines our intention of pushing forward the two pillar strategy of the TUI group.”
*See previous stories
by Phil Davies
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