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First Choice To Merge With TUI Group  
User currently offlineLite From , joined Dec 1969, posts, RR:
Posted (7 years 1 month 4 days 16 hours ago) and read 8486 times:

Financial Times are reporting that the owner of Monarch and Cosmos is looking into a merger with the mainstream First Choice business and First Choice Airways.

Link: http://www.ft.com/cms/s/f8ed35b2-d36...b5df10621.html

27 replies: All unread, showing first 25:
 
User currently offlineHumberside From United Kingdom, joined Dec 2005, 4914 posts, RR: 5
Reply 1, posted (7 years 1 month 4 days 16 hours ago) and read 8464 times:

Would probably be a good fit, for both the tour operating side and the airlines (bases/fleet). Plus Fist Choice would gain two highly respected names in Cosmos and Monarch. But would First Choice want to own a scheduled LoCo operating to the likes of Ibiza and Malaga at just the time when they are reducing capacity to those destinations?


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User currently offlineBlueShamu330s From UK - England, joined Sep 2001, 2785 posts, RR: 25
Reply 2, posted (7 years 1 month 4 days 13 hours ago) and read 8373 times:

Quoting Humberside (Reply 1):
Plus Fist Choice would gain two highly respected names in Cosmos and Monarch. But would First Choice want to own a scheduled LoCo operating to the likes of Ibiza and Malaga at just the time when they are reducing capacity to those destinations?

Sergio Mantegazza is looking to aquire First Choice, not the other way round.

Shamu



So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
User currently offlineLite From , joined Dec 1969, posts, RR:
Reply 3, posted (7 years 1 month 4 days 11 hours ago) and read 8323 times:

If the merger was to go ahead, I would imagine that the company would keep the Monarch Airlines brand, operating Airbus aircraft on short and medium haul flights, with the new order from both companies of the Boeing B787 for long haul flights. Monarch Scheduled is well positioned in the low cost market, despite strong competition at all of it's bases, and can see the model potentially being extended to some medium and long haul markets where British people are buying second homes. First Choice has now well established itself in the long haul arena, which is somewhere mostly through lack of capacity, that Monarch have failed to gain a major foothold in.

User currently offlineN328KF From United States of America, joined May 2004, 6482 posts, RR: 3
Reply 4, posted (7 years 1 month 4 days 8 hours ago) and read 8243 times:

This would make sense from a future fleet standpoint -- both are future 787 operators.


When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt
User currently offlineEMAlad From United Kingdom, joined May 2006, 443 posts, RR: 0
Reply 5, posted (7 years 1 month 3 days 13 hours ago) and read 8054 times:

What would this mean for flights booked on First Choice for the Summer?

Am not having much luck with flying at the moment. Booked on BACON and now going Flybe, also booked to Greece with the family on First Choice and now looks like someone else may be flying us, lol


User currently offlineBY738 From Tonga, joined Sep 2000, 2175 posts, RR: 1
Reply 6, posted (7 years 1 month 3 days 13 hours ago) and read 8036 times:

Quoting EMAlad (Reply 5):
What would this mean for flights booked on First Choice for the Summer?

Nothing. It aint gonna happen that quick, if ever.


User currently offlineBlueShamu330s From UK - England, joined Sep 2001, 2785 posts, RR: 25
Reply 7, posted (7 years 1 month 3 days 12 hours ago) and read 8006 times:

I can see the logic in the ambition.

I was priviledged to meet Sergio Mantegazza and his son Fabio in Lake Como 2 summers ago at a society do.

Really charming, astute and forthright. Very proud that Monarch has never recorded a financial loss.

Fabio runs Cosmos/Monarch. There have always been loads of rumours that the outfit is run by mafia money, but as is normally the case and as far as I am aware, they are just rumours.

Monarch is the dark horse of the airline industry, quietly getting on with what it does best. It long had the reputation as being the charter carrier of choice for crew, although having to face recent economic issues along with all carriers has tarnished that image amongst some.

Not to deny the rumour makes me believe the possibility of a First Choice buyout could well be in their sights. The two companies complement each other nicely in structure, exposure and fleet comonality, allowing consolidation, reduced overheads and greater market share.

After the recent spate of mergers and takeovers, the Mantegazzas might have the view that few other companies have the financial clout or means to force a bidding war, therefore allowing them to acquire First Choice or any part of it for what they see as true market value and not an overly inflated, ramped price.

If they are in the running, I personally do not see anything but good coming from it.

Now, where's that old sage BestWestern when you need him.....?

Regards

Shamu



So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
User currently offlineLite From , joined Dec 1969, posts, RR:
Reply 8, posted (7 years 1 month 3 days 12 hours ago) and read 7981 times:

Industry consolidation is bound to continue to happen over the next few years, and this is why I'd suspect that the previously successful independent carrier Monarch may want to merge with another established name in the leisure market. As mentioned, the two companies have a good fit in terms of fleet and business models, though I'm not sure which brand would be kept. It appears that it's Mantegazza going out for the First Choice mainsteam business, which seems to be better placed brand-wise than Cosmos, though presumably would belong to the First Choice Group which would continue to trade after the mainstream business has been sold off. Having FCA brought into the Monarch Airlines brand would bring an excellent longhaul product, a range of regional bases, a small but established scheduled market to Cyprus which Monarch have just started from Luton and a good fleet fit. I suppose it depends if the price is right, but one thing is sure that there are too many seats on the market, and consolidation will be good for the industry.

User currently offlineBOE773 From , joined Dec 1969, posts, RR:
Reply 9, posted (7 years 1 month 3 days 5 hours ago) and read 7851 times:

First Choice have ordered 12 787-8 with GEnx engines.
Monarch have ordered 6 787-8 with RR engines.

For commonality is it likely that the merged carrier will opt for all GEnx engines?


User currently offlineBlueShamu330s From UK - England, joined Sep 2001, 2785 posts, RR: 25
Reply 10, posted (7 years 1 month 3 days 4 hours ago) and read 7833 times:

Quoting BOE773 (Reply 9):
For commonality is it likely that the merged carrier will opt for all GEnx engines?

If the takeover shark has ordered Rolls, and is a Rolls stalwart, why on earth would they drop their policy and jump into bed with GE just because the takeover target has ordered GE?

No brainer I'm afraid

Shamu



So I drive a 4x4. So what?! Tax the a$$ off me for it...oh, you already have... :-(
User currently offlineBOE773 From , joined Dec 1969, posts, RR:
Reply 11, posted (7 years 1 month 3 days ago) and read 7777 times:

Quoting BlueShamu330s (Reply 10):

Makes sense BlueShamu330s, and also with the one pylon design for either powerplant, this gives operators the flexibility of an engine choice.


User currently offlineAirman99o From Canada, joined Aug 1999, 975 posts, RR: 1
Reply 12, posted (7 years 1 month 2 days 23 hours ago) and read 7768 times:

wonder what this will mean for skyservice in Canada. WE do alot of plane sharing with First Choice, would be nice to see a Monarch / Skyservice hybrid. Hope this has a good outcome on all affected. if it goes through.


Safety is Everyones Responsibility.
User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 36
Reply 13, posted (7 years 1 month 2 days 18 hours ago) and read 7726 times:

Quoting Airman99o (Reply 12):
wonder what this will mean for skyservice in Canada. WE do alot of plane sharing with First Choice, would be nice to see a Monarch / Skyservice hybrid. Hope this has a good outcome on all affected. if it goes through.

Nothing. They're merging with TUI now. aka Thomsonfly etc etc



Debate is what you put on de hook when you want to catch de fish.
User currently offlinePicturethis From United Kingdom, joined Oct 2006, 196 posts, RR: 7
Reply 14, posted (7 years 1 month 2 days 17 hours ago) and read 7672 times:

Also have a gander at:

http://news.bbc.co.uk/1/hi/business/6465387.stm

Looks like we've gone from 4 Airlines to 2 in a year!

I would assume FCA will become TUIfly then?

Hoorah! not



Make sure they know we're playing the game, but we don't need to play the game because we've already won the game.
User currently offlineTCXDegsy From United Kingdom, joined Jan 2006, 510 posts, RR: 1
Reply 15, posted (7 years 1 month 2 days 16 hours ago) and read 7560 times:

The Merger Proposal of FC and TUI confirmed:

"TUI and First Choice are to merge creating Europe’s largest travel company TUI Travel.

The enlarged company, in which TUI will take a majority 51% stake, expects to see pre-tax cost savings of at least £100 million a year within the next three years.

First Choice chief executive Peter Long will run TUI Travel with TUI northern Europe chief executive Peter Rothwell reporting into Long as deputy chief executive. TUI chief executive officer Dr Michael Frenzel will chair TUI Travel.

The merged company will take around 27 million customers to 200 destinations every year. First Choice chairman Sir Mike Hodgkinson said the merger gives the group “a unique opportunity to enhance margins”.

The deal follows hot on the heels of MyTravel's merger with Thomas Cook, announced last month.

Both enlarged companies would have UK shop networks of more than 1,000 although consolidation among the shop network has been listed among the synergies TUI and First Choice are expecting. It also expects to see an increase in sales over the Internet.

The mergers still have to gain approval from the various competition and regulatory bodies in the UK and Europe but TUI and First Choice are expcting the deal to be finalised in the third quarter of this year.

Accountancy firm White Hart Associates partner Chris Photi said it was inevitable that consolidation would take place among the big four although he said he was surprised with the speed at which the four have become two.

If approved, the mergers would lead to holiday prices rising, he said. "In the long term it likely will mean that the consumer will pay more for their holidays in the UK.

"However I do not consider this to be a bad thing as this will bring the UK market more into line with the rest of Europe and will stabilise the industry as it has survived on too small margins for too long."



next flights: BA1441 0566 0581 1446 EDI-LHR-MXP-LHR-EDI
User currently offlineAirman99o From Canada, joined Aug 1999, 975 posts, RR: 1
Reply 16, posted (7 years 1 month 2 days 13 hours ago) and read 7447 times:

I ask what this may mean for Skyservice, as we do provide alot of life for First Choice Canada " signature " more flying or with this merger will Signature stay as is or will someone come along and scoop up this?? hopefully this means a lot more flying coming Skyservice's way. Keepin those fingers crossed. Hmm a fully blue skyservice plane?? wow another one to add to our multi coloured fleet :P


Safety is Everyones Responsibility.
User currently offlineAcelanzarote From Spain, joined Nov 2005, 814 posts, RR: 0
Reply 17, posted (7 years 1 month 2 days 10 hours ago) and read 7322 times:

Seems to me holidays are going to cost more soon, less compatition.
Looks like the Airbus A320/321's days are numbered then since TUI
is so in favour with 737/757's etc..

Yet more people soon going to be without work....

Good luck to anyone affected...



from the Island with sun and great photo's.. Why not visit Lanzarote
User currently offlineLite From , joined Dec 1969, posts, RR:
Reply 18, posted (7 years 1 month 2 days 10 hours ago) and read 7264 times:

Whilst the cost of the holiday may rise a small amount given that two of the major UK tour operators are now being merged into larger companies, the cost of a holiday has already been substantially reduced thanks to the growth of the low-cost airlines - who will continue to keep package holiday prices down as the companies try to keep customers from booking their holidays independently. We should see less capacity problems, and as such, healthier tour operators who are better prepared to deal with the pan-European market. There has been too much capacity out there over the last few years, so whilst it will be sad to see some great brands leave the marketplace, this is the best way to ensure the successful future of the integrated holiday companies.

The Airbuses will probably go very soon, but they make up a small proportion of First Choice's fleet compared to their Boeing 757/767 aircraft. The A321s were already on the way out in October anyway, so my guess is that this merger will speed up the departure of the A320s - to create an all Boeing fleet of the B737, B757 and B767, plus making room for the B787 in a few years.

The merger seems to make a lot of sense, merging Thomson who work well in the bucket and spade markets, and First Choice who work well in longhaul and specialist markets. Combined they will have a successful holiday airline (mixture of charter and low-cost work), a large high street travel agent presence, market penetration in a number of markets and make up one of two major pan-European integrated travel companies.


User currently offlineBA787 From United Kingdom, joined Jun 2006, 2596 posts, RR: 7
Reply 19, posted (7 years 1 month 2 days 9 hours ago) and read 7211 times:

I am pretty pleased with this.

Lets look at this from the tourists perspective:

First Choice are and were quite frankly crap when it came to holidays. Their only saving grace was a first rate airline to back up the woeful holidays. With the joining with TUI, its going to save both the company and consumer a lot of money take this example

Both Thomson, Crystal and First Choice serve the ski resort oif La Thuile. From Manchester there are around four or five flights every sunday to Turin, 3 with BY, two with FCA. These flights could probably be put to bigger a/c if they were the same company. Both Thomson and Crystal are owned by TUI, with FCA now as well. There are a total of six coaches from these three operators upto La Thuile, some of which are of the minibus size. This could be reduced, and made bigger coaches. Then there is the apres ski activity, and reps. There are three reps in La Thuil currently, one from each company. With a bit of clever management, this could be cut to two. The apres ski activities at Thomson and Crystal are the same, First Choice's could be integreated too, meaning less costs. So you're thinking thats from the business point of view. But it offers the tourist more choice, if TUi put on 4 flights a day wioth 763s for example, the passengers could choose their most suitable flight, most suitable coach journey.

Its the same across the whole toursim board. And whoever mentioned price need to look at the prices. TUI is well known for actually offering really low prices as opposed to the more specialist companies, in fact some would say that Thomson/Crystal make skiing affordable to evrry family.


User currently offlineJetset7E7 From United Kingdom, joined Jul 2004, 1089 posts, RR: 16
Reply 20, posted (7 years 1 month 2 days 3 hours ago) and read 7049 times:

Quoting Acelanzarote (Reply 17):
Looks like the Airbus A320/321's days are numbered then since TUI
is so in favour with 737/757's etc..

First Choice's leases on the A321's are up very soon anyway, all TUI will do with the A320's is just return them to lessor!

Mark



Retrofitted Blended Winglets - The Future Is On The Wing
User currently offlineBh4007 From United Kingdom, joined Jun 2005, 239 posts, RR: 0
Reply 21, posted (7 years 3 weeks 3 days 7 hours ago) and read 6722 times:

This thread/news stories are so confusing so here's some questions:

Why is the thread titled "First Choice To Merge With TUI Group" but the starter saying something about Monarch and FC?

Why is the link given about prisoners being used to fill skills gaps(!)??

So will the new TUI UK company include both Thomson/Thomsonfly and First Choice or are Thomson[fly] still going to trade as Thomson[fly] (what about brand reputation/recognition etc etc....)?

I thought TUI UK had been around for like 4 years; is it really new?

Will FCA's and TOM's aircraft be repainted in yellow TUI colours and will they share an AOC? Will they be British registered?

I wonder what this will mean for TOM and FCA's competing long haul products??
I'm guessing we'll see a removal of all airbus 320/321 etc from FCA and a large 738 order for both airlines and a gradual removal of 767s from both carriers in favor of a big 787 order, in particular for the Tui/Thomsonfly/Britannia(!) side of the equation.

we really are set for a boring, monopolized future for UK charter airlines/tour ops for both enthusiasts and travelers alike.

sorry about all the questions; call me ignorant

thanks in advance,
bh4007

[Edited 2007-03-27 21:55:55]

User currently offlineJetset7E7 From United Kingdom, joined Jul 2004, 1089 posts, RR: 16
Reply 22, posted (7 years 3 weeks 3 days 4 hours ago) and read 6635 times:

Quoting Bh4007 (Reply 21):
Monarch and FC?

He said Cosmos, are trying to merge into this group, Monarch operate a lot charter flights for Cosmos, and a lot of other operators, so it wouldn't really affect Monarch.

Quoting Bh4007 (Reply 21):
So will the new TUI UK company include both Thomson/Thomsonfly and First Choice or are Thomson[fly] still going to trade as Thomson[fly] (what about brand reputation/recognition etc etc....)?

All going to be under one banner TUI Fly

Quoting Bh4007 (Reply 21):
Will FCA's and TOM's aircraft be repainted in yellow TUI colours and will they share an AOC? Will they be British registered?

I hope they all stay in the TUI blue, yes all will be UK registered

Quoting Bh4007 (Reply 21):
I'm guessing we'll see a removal of all airbus 320/321 etc from FCA and a large 738 order for both airlines and a gradual removal of 767s from both carriers in favor of a big 787 order, in particular for the Tui/Thomsonfly/Britannia(!) side of the equation.

TUI has a big order of 738's already, and TUI are mainly a Boeing customer, the leases on the A321's are up soon anyway for FCA, these will just be withdrawn as and when really. Some of Thomsonfly's 767's from the original Britannia order, have already left due to end of lease deals, I can only recall two G-OBYA which left way back in 2000 and G-OBYC that went to Air Italy last year.

Mark



Retrofitted Blended Winglets - The Future Is On The Wing
User currently offlineLite From , joined Dec 1969, posts, RR:
Reply 23, posted (7 years 3 weeks 2 days 15 hours ago) and read 6565 times:

Quoting Bh4007 (Reply 21):
This thread/news stories are so confusing so here's some questions:

Why is the thread titled "First Choice To Merge With TUI Group" but the starter saying something about Monarch and FC?

Why is the link given about prisoners being used to fill skills gaps(!)??

When this thread was set up, it was after FT had on their front page the possibility of Monarch and Cosmos being merged into the First Choice Group, and FC' shares taking their first leap in a while after a major slump with the announcement of the Thomas Cook and MyTravel merger. Obviously since then, First Choice has announced they're to merge with TUI, so a moderator combined and retitled the thread.

All other questions have been answered.


User currently offlineEMAlad From United Kingdom, joined May 2006, 443 posts, RR: 0
Reply 24, posted (7 years 3 weeks 2 days 9 hours ago) and read 6489 times:

How will this merger affect our holiday flights with First Choice from Birmingham to Zakinthos in the Summer?

25 TokyoNarita : Can someone post all of the TUI affiliated airlines and fleet? Thanks
26 Lite : It won't, there will be no commercial changes to either First Choice or MyTravel this summer before they are swallowed up or merged into the larger c
27 Post contains links ThomasCook : Hi, TTG (Travel Trade Gazette) are reporting fleet cuts once the TUI tie up is completed: TTG Live ThomasCook
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