Category Archives: TUI fly (Germany)

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

All 5 TUI airlines to be merged, based in Hanover, as fleets are reduced

TUI fly Germany has made this announcement:

  • Supervisory Board supports restructuring plans and mandates management to negotiate with works councils and trade unions
  • Existing employment guarantee until the end of 2021 for all German TUI companies also applies to the restructuring of TUI fly
  • Commitment to company headquarters and the airline base Hanover: Hanover and Düsseldorf remain the largest bases of the TUI fly fleet

TUI fly Germany Managing Director Oliver Lackmann explains after the meeting of the Supervisory Board of TUI fly GmbH in Hanover:

“At the June 18 meeting, the management again presented the plans for the restructuring of the German holiday airline to the TUI fly Supervisory Board and explained in detail the need for changes. There is no doubt that these are major changes and cutbacks for our employees and for the company. Nobody takes the decision lightly, neither I myself as managing director and flight captain nor the supervisory board. But the TUI fly fleet is too large for the customer base of our German TUI tour operator. We must reduce this fleet and work more closely together within the five airlines of the Group. Otherwise, as a premium provider of holiday flights, we will further increase our competitive disadvantage over other airlines.

Even before the Coronavirus pandemic, the German airline market was characterised by considerable overcapacity and a fierce price competition. The coronavirus pandemic has led to severe disruptions in the airline sector, especially for holiday flyers. The regular business of TUI fly has come to a complete standstill since mid-March. According to forecasts, air traffic in the coming year will still be significantly lower than the volume in 2019. Even in the peak season, the TUI fly fleet was not able to achieve a cost-covering occupancy rate before Coronavirus. In the past, between 14 and seven aircraft with crews were permanently leased to Air Berlin and later to Eurowings. These were thus aircraft and seats which we as a tour operator were unable to fill with our own customers. The situation has now become even more difficult due to the pandemic. In the long-term interests of all employees of our airline – and in the interests of TUI as a whole – we must make TUI fly fit for the future.

We want to come to an agreement with the representatives of the workforce as quickly as possible. The Supervisory Board of TUI fly has mandated the management to enter into negotiations with the works councils and the trade unions. The negotiations are also based on the employment protection scheme in place until the end of 2021, agreed with the Group Employee Council for all TUI Group companies in Germany. It excludes dismissals for operational reasons with effect before the end of 2021. We see this agreement, which has been in place since 2019, as an opportunity to make the restructuring as socially responsible as possible. The Supervisory Board also underlined this goal today. We are very aware that the reduction of each individual position is about colleagues who are highly loyal to their airline. Our aim is to secure as many jobs as possible in TUI fly in the long term. However, this will only succeed if we adjust the size of the airline to a healthy and future-proof level. We will take into account the interests of the employees, the Hanover airport location and TUI as a whole in our decisions. We are now at the beginning, not at the end, of the negotiations on the design of the restructuring. The core of the plans is the announced adjustment of the fleet to about half of the current 39 aircraft.

In addition, central functions are to be more closely integrated across all five Group airlines. In a first step, TUI’s European airlines will be merged under one company. This central flight division for TUI Group airlines will be based in Hanover.

TUI fly plans to cut jobs in technical, administrative and crew functions since fewer aircraft will be used. In future, TUI fly intends to concentrate on the departure airports of Hanover and Düsseldorf as the largest fleet locations, as well as Frankfurt, Munich and Stuttgart”.

Currently there are five airlines in the TUI Group operating around 150 medium- and long-haul aircraft, including the largest fleet of the Boeing 787 Dreamliners. The airlines are TUI Airways, TUI fly, TUI fly Belgium, TUI fly Netherlands and TUI fly Nordic, serving more than 180 destinations around the world.

TUI fly Germany aircraft photo gallery:

TUI AG to get a German Federal government bridge loan

TUI (Germany) has made this announcement:

KfW and TUI AG confirm the signing of the state aid bridging loan for 1.8 billion euros. The loan had been committed by the German Federal Government on March 27 as part of the COVID-19 state support program. TUI’s current Revolving Credit Facility “RCF” banking consortium supports the KfW loan and the addition of the 1.8 billion euros into TUI’s existing RCF credit line.

Following the international travel restrictions, TUI decided to apply for the KfW loan in order to cushion the unprecedented effects of the pandemic until normal business operations can be resumed. TUI like others had to temporarily suspend its tour operator, flight, hotel and cruise programmes. TUI is a very healthy company that was economically successful before the crisis – it has a strong strategic positioning, structure and substance. The current financial year 2020 had started off with extremely strong bookings.

TUI CEO Fritz Joussen: “Our employees are rightly proud of TUI’s success in recent years and they should continue to be in the future – after this crisis We must bridge this unprecedented global situation. The German Government has acted quickly to support jobs and companies during these exceptional times. We are now preparing intensively for when our operations can resume after the Coronavirus crisis and firmly believe, people will continue to want to travel and explore other countries and cultures in the future.”

TUI fly Germany aircraft photo gallery:

TUI fly Germany opens up the Caribbean from Düsseldorf

TUI fly Deutschland on February 4 added new service to Punta Cana, Puerto Plata and Cancun from Düsseldorf available for booking. Flights will commence on November 4, 2020 for the next winter season.

Two TUI Boeing 787-8 Dreamliners will be operated on the routes.

TUI fly Deutschland aircraft photo gallery:

TUI fly Germany to start long-haul Boeing 787-8 Dreamliner flights from Dusseldorf

TUI fly (Germany) has reportedly selected Dusseldorf International Airport as the launch airport for its new planned Boeing 787-8 Dreamliner long-haul flights.

Services are expected to be launched in November 2020 to the Dominican Republic and Mexico.

TUI fly will base two Boeing 787-8s at DUS.

TUI AG, the world’s largest tour company, holds a majority of shares in TUI Travel PLC, London, to which the TUI fly airline company belongs. TUI fly uses 26 Boeing 737 aircraft to fly to the classic holiday destinations for TUI.

TUI fly Germany aircraft photo gallery:

TUI fly Germany to fly long-haul with two Boeing 787 Dreamliners

TUI fly Germany made this announcement (translated from German):

The decision for long-haul flights at TUI fly in Germany has been made and confirmed by the TUI Group.

With the beginning of the winter timetable 2020/21, TUI fly will start long-distance flights from Germany.

Two Boeing 787 Dreamliner aircraft will fly to destinations in the Caribbean and Mexico.

“An agreement with the social partners makes the decision for the long haul flights possible. Strategically, the long-haul segment brings several advantages for the TUI Group: The feeder flights for cruises of the “Mein Schiff” fleet of TUI Cruises are operated under their own flag. The TUI Group is strong on long-haul destinations and owns a comprehensive hotel portfolio in the Caribbean. The approach of long-haul destinations, such as the Cape Verde Islands, is also being considered. There, the TUI Group has a strong presence with its own hotel brands such as RIU, Robinson and TUI Blue, “says Oliver Lackmann, Managing Director of TUIfly GmbH.”

TUI fly Germany aircraft photo gallery: