John

German travel giant Tui AG is to merge with First Choice, creating the biggest travel company in the UK.
Just weeks after being left out in the cold by Thomas Cook, which ditched it in favour of a tie-up with northern rival MyTravel, First Choice is now set to sign a deal with Thomson owner, Tui AG.
“It’s one hell of a plan B for First Choice,” said one source.
Consolidation among the big four has long been expected in the wake of the no-frills airlines and internet revolution, but a pairing of the two remaining majors, was as much of a surprise as the TC/MyTravel deal announced a month ago.
If given the go ahead, the UK industry could go from four to two big players in a matter of months.
The new Tui/First Choice partnership would be called Tui Travel plc, listed in London and with it headquarters also in the capital. First Choice CEO Peter Long would become the CEO of the merged business, with Tui UK managing director Peter Rothwell as his deputy.
Observers suggest Long could take the helm for just three years, before allowing Rothwell to step up. Sources close to the deal tip Dermot Blastland, currently managing director of First Choice Holidays UK and Ireland, for the Tui Travel UK managing director role.
Tui Travel Plc would be 51% owned by Tui and 49% owned by the existing shareholders of First Choice.
The combined group would have 27 million customers

(TTG)

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