TUI in West Midlands International Airport Takeover

February 19, 2004

TUI in Airport Takeover
The Times, UK 
 
 
TUI, the German travel giant that owns Thomson
Holidays and Lunn Poly, will reveal an unusual
departure today when it acquires control of West
Midlands International Airport — otherwise known as
Coventry airport. 
 
The deal, announced to staff last night, is believed
to be the first instance of a tour operator taking on
ownership and management of an airport. 

The acquisition comes just weeks before TUI launches
Thomsonfly, a low-cost airline with four aircraft
flying out of Coventry to eleven holiday destinations
in the Mediterranean and the Channel Islands, starting
from March 31. 

The company’s website is advertising flights to
destinations such as Nice, Venice and Marseille from
£8.99 excluding taxes and charges, and for £13.99 to
Malaga. The cheapest flights, starting at just £3.99,
are to Jersey. 

TUI, which entered the UK in 2000 through the £1.8
billion acquisition of Thomson Travel Group, is
expected to press ahead with plans by the airport’s
owners, Air Atlantique, to update the site and build a
£3 million terminal. 

Despite its proximity to East Midlands airport, home
to bmibaby, the budget offshoot of bmi, TUI is
confident of strong bookings from the five million
people who live within an hour’s drive. 

Air Atlantique, best known as a cargo carrier, took
over the airport in 1998 from Coventry City Council
with a 150-year lease. But sharp criticism has been
directed at its management of the airport and TUI’s
arrival should improve the odds on Warwick District
Council approving the new terminal. 

It is understood that TUI has become increasingly
frustrated at the threat to Thomsonfly’s plans posed
by the breakdown in relations between Air Atlantique
and the local authorities. The company is believed to
view taking over the airport as the best way of
preserving its position. 

A source close to TUI said that the tour operator had
no intention of buying any other airports and
described the cost of buying and redeveloping the
airport as “minimal in the context of the size of the
company”.
 
 
 

 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dc/dcboard.php

*****************************************