German carriers line up against Ryanair, Easyjet

5 July 2004

HANOVER/BERLIN – In an increasingly competive low fare and package tourism sector in Germany, the airline Air Berlin and the travel concern TUI said Monday they would cooperate in serving holiday destinations.

A report in the Hannoverschen Allgemeine newspaper said the cooperation would chiefly serve holiday travel to Egypt and the Canary Islands starting with the next winter season.

The cooperation is seen as a move to meet the competition posed by such cheap-fare carriers as Ryanair and Easyjet, the report said.

Easyjet is currently considering making Hanover a base of operations in Germany. Air Berlin as well as TUI’s carriers Hapag- Lloyd Flug (HLF) and Hapag Lloyd Express have threatened to pull out of Hanover airport if Easyjet is given permission.

At Hanover-based TUI and at Air Berlin in the German capital, spokesmen confirmed the newspaper report about the aim for close cooperation.

While HLF is foreseen giving priority to the Canary Islands and Egypt, Air Berlin would chiefly concentrate on the Balearic Islands, Spain and Portugal.

Aviation industry analysts say that such an alliance would provide TUI with a competitive advantage in being able to offer customers more flights and to raise seating capacity utilisation. Already, HLF and Air Berlin have coordinated with each other in their operations at Nuremberg airport.

The envisaged closer cooperation follows on TUI’s failed plans to take over Air Berlin, now Germany’s second-largest air carrier after Lufthansa. The TUI spokesman Monday ruled out buying into Air Berlin now.

DPA

Subject: German news