TUI UK will replace regional flights with third-party
flying if airports don’t back down to its demand for lower
passenger fees.
The company has warned UK airports it wants fees to be slashed
to match those offered to no-frills competitors or it will consider
pulling its own in-house flying.
TUI UK is angry that airports are offering special rates to
competing no-frills airlines when it pays around £10 more per
passenger in fees.
Retail sales director Miles Morgan confirmed the company was
serious about its threat to pull out of airports.
“Ultimately, we have to make a profit out of every part of the
organisation. Every business has to drive down its costs. If we can
compete with the no-frills carriers that would allow us to look at
more new routes,” he said.
“If necessary the shops will sell third-party flights out of
regional airports to satisfy demand.”
TUI northern Europe’s airport advisor, Bill Savage, said
the company had taken more of an interest in its airport charges
since taking over Coventry Airport in February.
“Owning Coventry has shown them how the business really
operates,” he said. “The company has been able to see how things
work on the other side of the fence and is no longer prepared to
accept the norm. We’ll support airports that support our
business.”
Rival operators backed its stance. First Choice Holidays
managing director Neil Morris said: “While we never discuss details
of contracts with airports, it is important we secure good rates
and competitive deals.” He ruled out launching a joint trade
assault on airports because rival charter airlines have stronger
bases at different airports.
Airports were cagey about TUI’s threats, stating contracts
with airlines were private. However, BAA said it didn’t offer
discounts at Gatwick and Heathrow and was phasing out discounts at
Stansted and its Scottish airports.