TUI Travel, Europe’s largest tourism company, has increased the amount it says it can save by synergies from last year’s merger with First Choice. Chief Executive Peter Long said saving should be just over 200 million euros annually by 2010.
As well as closing up to 100 of its high street travel agencies, the company plans to merge more of its back-office operations.
And there was encouraging news from TUI about sales; it said weaker consumer spending with retailers had not hit its business and people have continued to book holidays.
A new low-cost airline is also in the works from TUI. It has a memo of understanding to merge its struggling airline unit TUIfly with Lufthansa’s Germanwings and Eurowings by the middle of next year. Combined they would carrying around 30 million passengers a year and rival budget carrier Air Berlin.