DMCs & PCOs

TUI reveals its action plan for aviation and cruise sectors
01/01/2007
Dr Michael Frenzel, TUI’s CEO told to the press conference that took place in Hamburg on Friday 15 December 2006 that flight operations will continue to be an integral part of tourism. The core of the action plan is a growth strategy for TUI’s German flight business under the new brand TUIfly.com, the establishment of a new Europe-wide internet portal for flights, the expansion of the hotel business and entry into the high-volume premium cruise segment under the brand TUI Cruises by means of a joint venture with Carnival.
At the same time, a new debt reduction programme totalling around one billion euros has been initiated. In parallel, the first steps have been taken to reduce the amount of capital tied up in flight operations. Frenzel said: “Our action plan clearly aims to significantly improve profitability in the tourism division. We will achieve this objective by means of profitable growth and cost reductions while simultaneously reducing our capital tie-up.”
On top of the action plan, TUI’s CEO announced a cost-cutting programme worth 250 million euros by 2008 for the tourism division and a significant reduction in corporate centre costs by around one third.