TUI Travel, Air Berlin Sign Long-Term Deal

TUI Travel PLC and Air Berlin PLC have signed a long-term strategic partnership for their German flight business. The agreement is based on a cross ownership in which TUI Travel PLC, through a subsidiary, will have an interest of 19.9 percent in Air Berlin PLC and vice versa.

Air Berlin PLC will hold 19.9 percent of Hapag-Lloyd Fluggesellschaft mbH/TUIfly. The Supervisory Boards of Air Berlin, TUI Travel PLC and TUI AG have already approved the plan. Provided the competition authorities approve the plan, the transfer of economic responsibility will take effect as of Oct. 1. Until then nothing will change for the customers of both airlines.

When the agreement comes into effect, the former TUIfly city routes will be operated under the flight number and product standard of Air Berlin. The tourism business will be marketed unchanged under the TUIfly brand.

The central component of the agreement is for the previous city flight business of TUIfly to be transferred to become the commercial responsibility of Air Berlin starting with the winter flight schedule for 2009-2010.

Of the total 38 aircraft that TUIfly will operate from 2010, 17 planes will be chartered to Air Berlin via a long term wet lease (i.e. including the crews). The remaining 21 aircraft will be operated in future under the TUIfly brand purely for TUI Deutschland tourism flights.