Category Archives: TUI Airways (UK)

TUI Group to put its airlines under a single management team

TUI Group is planning to put its five airlines in Belgium, Germany, Netherlands, Scandinavia and the United Kingdom under a single management team according to Handelsblatt.

TUI says the goal is to “take the complexity out of the system”, creating an airline and travel group that can “hold its own in competition”.

However each AOC and brand will be retained in their respective countries.

In other news, the TUI Group has successfully completed the sale of its minority stake in a property portfolio to the Riu family. The portfolio which was previously held jointly between TUI and RIU consists of 21 properties, comprising 19 existing buildings and two in development. The divestment only includes the ownership of these properties. The operation and marketing of these hotels will continue to be carried out by the 50:50 joint venture between TUI and RIU. As a result, TUI ties up less capital in property ownership and concentrates on its core business, the operation and marketing of hotels.

TUI had agreed and announced the sale in May 2021. The total portfolio was valued at 1.5 billion euros. For its 49 percent minority stake, TUI has received an initial purchase price payment of 541 million euros today and can receive an additional earn-out of around 130 million euros until 2023.

The transaction has been closed in a continued difficult market environment and generated a significant book gain of around 200 million euros. As announced previously, the proceeds will be used to reduce the Group’s Corona debt.

BOC Aviation delivers seven Boeing 737-8 MAX 8 aircraft to TUI

BOC Aviation Limited has announced that it has delivered the seventh of seven new Boeing 737 MAX 8 aircraft for lease to TUI Travel Aviation Finance Limited. All aircraft are powered by CFM LEAP-1B engines.

TUI is the world’s leading tourism group. The broad portfolio gathered under the Group umbrella consists of strong tour operators, 1,600 travel agencies and leading online portals, five airlines with around 150 aircraft, over 400 hotels, 15 cruise liners and many incoming agencies in all major holiday destinations around the globe.

TUI Group reports a €3.0 billion annual loss, but is upbeat for 2021

TUI Group has issued this financial report for the fiscal year (October 1, 2019 through September 30, 2020):

  • Global reorientation measures accelerated and cost target raised: annual savings of 400 million euros announced
  • Demand for travel is rising: 50 percent of the program for May 2021 already booked
  • Summer 2021: average prices +14 percent – bookings 3 percent higher than for summer 2019
  • Revenue in Corona year reaches 7.9 billion euros1 (previous year: 18.9 billion euros)
  • Significant cost reductions limit loss for the full year:underlying EBIT -3.0 billion euros1 (previous year: 893.5 million euros)
  • TUI has liquid funds amounting to 2.5 billion euros2
  • CEO Fritz Joussen: “Very rapid cost and liquidity measures, an accelerated realignment and our flexible business model have enabled us to steer the Group through the crisis. TUI is ready for a speedy and successful resumption of travel activities as soon as the lockdowns are lifted and destinations reopen. The prospect of vaccinations from the beginning of the year will significantly increase demand for summer holidays in 2021. We are prepared for a new start after the crisis”.

TUI is preparing intensively for a new start in 2021 after the corona crisis year 2020. The pandemic is not over, but there is light at the end of the tunnel and the prospects for tourism and for TUI are good. The demand for holiday travel is there – consumers in all age groups say that traveling is one of the most missed activities for them in the Corona year. 2021 will be a transition year for tourism, and 2022 is expected to see a return to pre-Corona levels. In particular, the holiday sector will recover faster than the sector as a whole. TUI had made an excellent start to the financial year before the outbreak of the pandemic, but the worldwide travel warnings since March 2020 then forced the Group to largely discontinue business. Among other things, there was no Easter business, no travel at Whitsun and only very limited summer business in the Corona crisis year 2020. The Group introduced cost-cutting and financing measures at an early stage and accelerated the global realignment. In addition to securing additional liquidity, extensive cost-cutting projects were launched. The long-term goal of reducing annual costs has been raised from the previous 300 million euros to the current 400 million euros.

Fritz Joussen, CEO of the TUI Group: “The rapid measures to cut costs and secure liquidity are important for the Group. They are a stable foundation for the future. TUI was in perfect health before the crisis and we want to return to our former strength as quickly as possible. The market is intact, our business model is future-proof and customer demand is there. Holiday travel remains very relevant for people. At the same time, international tourism is strengthening the southern euro zone and North Africa in a special way. We are very well positioned to resume operations on a larger scale as soon as the lockdowns are lifted and destinations are reopened. Our business model with our own tour operators, the travel agencies, aircraft, hotels and ships under the TUI umbrella makes a resumption possible very quickly. The prospect of successful vaccinations from the beginning of the year makes us confident. All indicators point to a successful restart of the travel business as soon as the pandemic is over. We are prepared for this new start. We are consistently continuing the change we have initiated in order to be better and more efficient after the crisis”.

Group transformation accelerated – TUI becomes more digital, leaner, more efficient
The transformation and expansion of the Group’s digital platforms, which was initiated before the crisis, is being implemented consistently and has received a further boost in the pandemic. In all areas of the Group, the pandemic has further accelerated the digitalization of the business. Wherever it is in the interest of the customer, services will be digitalized even more in the future. The maxim is more and better service for the benefit of the customer. At the same time, digitalization offers considerable potential for efficiency and cost reduction. A comprehensive cost-reduction program was launched in the spring.

Cost reductions implemented in the short term limit loss for the year as a whole – revenue at around 8 billion euros
The first five months of the 2020 financial year (October 2019 to February 2020) were very successful for TUI, with a record booking rate of +14 per cent in January. In mid-March, the Group had to completely discontinue all travel activities due to the worldwide travel warnings. The tourism group was only able to generate revenue again when it was able to fly its first holiday guests to Majorca in mid-June in a pilot project and a limited resumption of operations from July onwards. Greece was particularly strong as a holiday destination in 2020. Since the new start in the summer, TUI has safely made holidays possible for more than two million guests. Underlying EBIT on a constant currency basis totaled -3.0 billion euros(previous year 893.5 million euros). Revenue amounted to 7.9 billion euros and was 58 per cent down on the previous year (18.9 billion euros). The sale of Hapag-Lloyd Cruises to the joint venture TUI Cruises, jointly operated with the Royal Caribbean Group, was initiated before the crisis. The transaction was successfully completed in the summer despite the difficult crisis environment. The proceeds additionally improved the Group’s liquidity. In addition, TUI had reached an agreement with Boeing to compensate for the consequences of the 737 MAX flight ban.

Financing and liquidity secured for ongoing pandemic
In view of the persistently volatile market environment and the continuing travel restrictions, TUI AG has agreed an additional financing package totaling 1.8 billion euros with private investors, banks and the German government. The package agreed last week includes a capital increase with subscription rights of around 500 million euros, the Group’s anchor shareholder has already confirmed his participation. It also includes a convertible silent participation of the Economic Stabilization Fund in the amount of 420 million euros. The financing package strengthens TUI’s position against the backdrop of increasing travel restrictions due to a renewed rise in the number of infections and the associated shorter-term booking behavior of some customers. The Group is securing liquidity during the ongoing pandemic.

Forecast for resumption of extensive travel activities in 2021 not reliably possible 
Due to the continuing high incidence of infection and the resulting lockdowns in the markets and only a few available travel corridors, it is not possible at this stage to make a reliable forecast of the extent and period of travel activity in 2021. At present, trips from the most important core markets can be made in particular to the Canary Islands as a popular winter destination. Cruises around the Canary Islands without shore leave (Blue Voyages) also take place.

Total bookings across all markets for winter 2020/21 are currently 82 per cent lower than in the previous year, roughly in line with the reduced capacities. Average prices are four per cent higher. Bookings for summer 2021 are three per cent higher than for the regular summer 2019. Average prices for the summer 2021 program are currently 14 per cent higher than for 2020.

Positive outlook for the tourism sector and TUI after the pandemic
The unbroken high level of consumer interest in holidays promises a rapid recovery for the holiday sector if the Corona situation eases. Tourism will remain a growth industry in the long term. As a safe and reliable form of travel, package tours in particular will play an important role in the resumption of travel. The cruise segment is also expected to see a complete resumption of business as soon as vaccines become widely available. The restart of cruises in summer 2020 has demonstrated the great interest of customers. With strong holiday brands, differentiated products and broad-based distribution in the key European markets, TUI is well positioned to get back on track successfully after the pandemic.

All photos by the group.


1) Pro forma calculation according to IAS 17

2) As of 30 November 2020, including 3rd financing package and redemption of the senior bond in the amount of 300 million euros

The United Kingdom bans the Boeing 737 MAX from UK airspace

Named "Malaga"

The UK Civil Aviation Authority issued this statement:

A spokesperson for the UK Civil Aviation Authority said: “Our thoughts go out to everyone affected by the tragic incident in Ethiopia on Sunday.

“The UK Civil Aviation Authority has been closely monitoring the situation, however, as we do not currently have sufficient information from the flight data recorder we have, as a precautionary measure, issued instructions to stop any commercial passenger flights from any operator arriving, departing or overflying UK airspace.

“The UK Civil Aviation Authority’s safety directive will be in place until further notice.

“We remain in close contact with the European Aviation Safety Agency (EASA) and industry regulators globally.”

There are currently five 737 MAX aircraft registered and operational in the United Kingdom (TUI). A sixth is planned to commence operations later this week.

The US Federal Aviation Administration (FAA) is responsible for certifying all Boeing 737 MAX  models and it is the European Aviation Safety Agency (EASA) that validates this certification across the EU, including the UK.

Boeing 737-8 “MAX” and Boeing 737-9 “MAX” Limitation of Operations due to a Fatal Accident in Ethiopia on March 10, 2019

Description: This SD is made in the interests of safety of operation and to protect the public following the accident of an Ethiopian Airlines Boeing Model 737-8 “MAX” aircraft on March 10, 2019. External reports are drawing similarities between this accident and Lion Air flight 610 on October 29, 2018 involving the same type of aircraft. Given the similarity of the two accidents, it has been decided that as a precautionary measure that all Boeing 737-8 “MAX” and Boeing 737-9 “MAX” operations in the United Kingdom, whether by UK AOC holders or foreign AOC holders and carriers, should stop until appropriate safeguards are in place.

TUI Airways UK operates its five Boeing 737-8 MAX 8 aircraft mainly from Manchester on routes to sun destinations.

TUI Airways UK issued this statement:

“Any customers due to fly home today on a 737 MAX 8 from their holiday will be flown back on another aircraft,” it read.

“Customers due to travel in the coming days will also travel on holiday as planned on other aircraft.”

Top Copyright Photo: TUI Airways (UK) Boeing 737-8 MAX 8 G-TUMF (msn 44599) BFI (Joe G. Walker). Image: 945812.

TUI Airways aircraft slide show:

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TUI Airlines UK to add Bristol – Punta Cana service

Thomson Airways Boeing 787-8 Dreamliner G-TUIB (msn 34423) PAE (Nick Dean). Image: 912005.

TUI Airlines (UK) (formerly Thomson Airways) will add weekly seasonal service from Bristol to Punta Cana, Dominican Republic starting on April 5, 2018.

The new route will be operated with Boeing 787-8 Dreamliners according to Airline Route.

TUI UK is a UK based travel operator and part of TUI Travel PLC.

Copyright Photo: Thomson Airways Boeing 787-8 Dreamliner G-TUIB (msn 34423) PAE (Nick Dean). Image: 912005.

Thomson Airways:

TUI (UK):