Thomson Airways (London Luton) parent, TUI Group, is to push ahead with plans to consolidate its airline subsidiaries into one all-encompassing carrier. The plans, first announced in in April last year, could see TUI fly (Germany), TUI fly Nordic, Arke Fly, and Jetairfly consolidated into one carrier with Thomson Airways, the group's largest airline, to be the project's corner stone. Corsair International has been excluded from the project as TUI is reportedly in talks concerning the French long-haul specialist's sell off to an undisclosed buyer.
The Group is facing increasing competition from budget carriers Ryanair, easyJet, and Norwegian, as well as rivals Thomas Cook Group whose carriers include Thomas Cook Airlines UK, Thomas Cook Airlines Belgium, Thomas Cook Airlines Scandinavia, and Condor.
According to Reuters, TUI could move administration and some MRO activities to the United Kingdom with the aim of making over EUR100 million (USD111 million) in annual savings. Though this, however, could put around 400-500 jobs out of more than 2,000 jobs at TUIfly's Hannover base at risk, it is believed the cuts were negotiated as part of the TUI Group's 'Max Thrust' restructuring programme.
While analysts have criticized the choice of Thomson Airways given that its cost base is the highest out of all the TUI Group airlines, it is believed the move was made as compensation for TUI Travel losing some activities to TUI Group's Hanover headquarters as part of the merger of TUI AG and TUI Travel last year.
A final decision is expected by Easter this year.
