TUI names no-frills CEO
TUI AG has named Wolfgang Kurth chief executive of its no-frills carrier, Hapag-Lloyd Express.
Mr Kurth, who took over yesterday, has his work cut out, as the airline is entering the increasingly competitive German no-frills market in December.
Hapag-Lloyd Express will face competition from Lufthansa’s affiliate, Eurowings, which is launching no-frills carrier, Germanwings out of the same airport, on 27 October. Germanwings and Hapag Lloyd Express will both fly from Cologne/Bonn to Barcelona, Paris, Milan and Rome, ensuring these will be the most competitive routes.
Further competition could come from Ryanair, which operates flights out of Frankfurt to 14 European destinations, and easyjet, which announced an exclusive option to buy Deutsche BA in May.
Virgin Express has already retreated from its plans to enter the German market with a no-frills base at Cologne/Bonn. It said that fierce competition will prompt a fares war that will be good for consumers, but unprofitable for business.
Mr Kurth said TUI is building a team of experienced airline staff, to be announced shortly, which he said would “have a major impact on this new market”.
At his previous position of divisional director of airlines, Mr Kurth worked with TUI’s European carriers, including Hapag Lloyd Flug in Germany, Brittania in the UK, and Corsair in France.
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