| Journal: TWUK | Section: |
| Title: | Issue Date: 12/06/00 |
| Author: | Page Number: 3 |
| Copyright: Other |
Airtours under fire from TUI over Germany capacity hikes
GERMAN operator TUI, whose parent Preussag is poised to take over Thomson, has criticised Airtours for piling on capacity in Germany through its FTi operation.TUI executive board chairman Dr Ralf Corsten said the move may cheapen destinations and hotels. Speaking during an interview with Travel Weekly, Dr Corsten said Airtours had been buying market share.
“They are acting as Airtours has been acting in other markets. You can either buy a tour operation to increase volume or you can buy market share by offering product even with negative margins,” he said. “It is bad for the destinations and not always good for hotels.”
Airtours has a 36% interest in FTi which has rapidly grown volume and share in the past 18 months. But the growth has come at a price. In the six months to March 31 this year, FTi showed a loss of £14.3m compared to £4m last year.
Asked if a FTi could continue such rapid volume growth Corsten said: “It depends on the investment from Airtours.”
n For the exclusive interview with Dr Corsten see page 8