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Frosch Touristik move ‘ahead of schedule’


AIRTOURS is expected to take full control of German operator Frosch Touristik in July, three years ahead of schedule.



It initially acquired a 29% stake in May 1998 for £17m before increasing its shareholding to 36% earlier this year.



Airtours will take the remaining 64% – which it originally had the option of acquiring in 2002 – on July 1.



The amount payable by Airtours is dependent on FTi hitting pre-determined profit targets although the total figure cannot exceed £314m.



Finance director Tim Byrne said Airtours was unwilling to continue providing 100% of the finance for an operation it only partially owned.



Airtours has expanded FTi, which is now thought to be Germany’s fourth-largest operator, since taking an interest. It launched a new charter carrier, Fly FTi, on May 1 with three new Airbus A320 aircraft operating to 13 destinations in the Mediterranean, Canary Islands and North Africa.



Byrne said the extra capacity has seen bookings grow by 82% in winter 1998/99 and 63% for summer ’99.



Meanwhile, Airtours further strengthened its position in Germany after FTi acquired 40% of small direct-sell operator Berge and Meer.



The operation, which sells through the Internet, carried 140,000 in 1998.


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