TT. Tui Travel

German discount airline Air Berlin PLC (AB1.XE) and TUI Travel PLC (TT.LN) Tuesday said they were in advanced talks over a strategic partnership under which Air Berlin would take over the route portfolio of TUIfly's city sector.

The cooperation would give Air Berlin access to markets in Italy, Stuttgart and Cologne, where TUIfly has a stronger presence, an Air Berlin spokesman told Dow Jones Newswires. If the deal is concluded, TUI Travel PLC would take a stake in Air Berlin of up to 20% by way of a subscription to new shares, while Air Berlin would acquire the same stake in TUIfly via Hapag Lloyd Fluggesellschaft mbH/Hapag Lloyd Express GmbH.

While Air Berlin would take over the route portfolio of TUIfly's city sector, the portfolio of the charter sector would remain with TUIfly.

The Air Berlin spokesman declined to comment on how the planned cooperation would impact capacities and jobs at Germany's second-biggest airline.

TUI Travel cautioned that there was no certainty that discussions would result in an agreed transaction. TUI Travel is the London-listed tourism division of TUI AG (TUI1.XE).

At 1045 GMT, Air Berlin shares in Frankfurt traded up 2.6% at EUR3.52. In London, TUI Travel's shares traded up 1.7% at 239 pence.

Analysts view the deal as fundamentally positive, although there are many open questions. "In light of the difficult environment for airlines, the companies must look for ways to reduce their cost structure," one analyst said, adding that cost savings were achievable in the areas of airport fees and fuel surcharge, for instance.

 
   Company Web site: www.airberlin.com 
                     www.tuifly.de 
 
   -By Natascha Divac and Kirsten Bienk, Dow Jones Newswires, +49 69 29 725 508, natascha.divac@dowjones.com 
   (Manuel Priego-Thimmel contributed to this report.) 
 

Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni TUI Travel (LSE:TT.)
Storico
Da Lug 2023 a Lug 2024