| Journal: TWUK | Section: |
| Title: | Issue Date: 22/05/00 |
| Author: | Page Number: 2 |
| Copyright: Other |
Frenzel assures commitment to UK company
Preussag chief vows to retain Thomson lead
Travel Weekly editor Jeremy Skidmore looks at the impact of Preussag’s takeover of Thomson Travel Group
PREUSSAG chief executive Dr Michael Frenzel has pledged to keep Thomson Travel Group UK market leader after the German travel giant completes the £1.8bn purchase of the operator.Thomson has cut capacity this year, while Airtours has added holidays, leaving the rivals with similar market shares for summer 2000. But Frenzel said it was important to remain in the top position, provided margins were not eroded.
“It’s important to be number one and psychologically it is good for the staff,” he said. “But we need to maintain quality and margins. We’re not just about adding holidays.”
Preussag’s purchase of Thomson has been unanimously accepted by the UK company’s board and is expected to be completed within two months.
Frenzel described the acquisition as the most important in Preussag’s history. It comes just two weeks after Frenzel responded to rival C&NTouristic’s £1.45bn bid for Thomson by claiming the UKcompany would be too expensive to buy.
“We got the chance to discuss the potential with Thomson management and that was the turning point,” he said.
“I refute suggestions we have paid too much – £1.8bn is a fair price and the two companies are a great fit.”
Under competition rules, Preussag has to sell its 51% stake in Thomas Cook.
The purchase will give Preussag 102,300 owned and controlled beds in resort.
Preussag will also consider offering long-haul holidays, something that is not currently part of its portfolio.
n See Comment and Analysis, page 8; Columnists, page 11; and Cutting Edge, page 74.
Future talks: Gurassa, left, and Frenzel are keen to keep Thomson in its position as the UK’s market leader