Hofmann's recommendations

TUI modernizes fleet with Boeing 737 MAX

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In an interview with Connoisseur Circle correspondent Kurt Hofmann, TUI Group CEO Fritz Joussen explains the enormous renewal of the aircraft fleets for the Group's airlines

With the delivery of the first Boeing 737 MAX, the TUI fleet is being comprehensively modernized. What does this mean for TUI?

We will receive 70 Boeing 737 MAXs over the next five years. We also have options for 50 more aircraft, of which we will probably order 20. The new aircraft are more economical, they consume significantly less kerosene, they are more comfortable and quieter and they are more environmentally friendly. By 2024, we will have the most modern fleet of vacation aircraft in Europe. And we want to own around half of the fleet in future instead of just leasing it. Following the restructuring of TUI, we are so financially strong that we can now finance more cheaply than leasing. But it is also true that a fleet rollover like this is a logistical challenge. But this is not the first time we have done something like this. The entire order from 2013 was in the region of 2.8 billion pounds.

How important is it for a tour operator to have its own airline these days?

It is important. For example, to open up new destinations. If we build a hotel, we have to be able to guarantee that there are good flight connections. You must not be dependent on others. We are represented in 100 countries around the world. There are plenty of flights to many vacation destinations. If many people fly to a destination, there is competition and enough free capacity. Then we also buy seats from others, for example for flights to Mallorca. But when we open up new destinations and build hotels there, we need our own aircraft to take our guests there from day one. For example, TUI has strongly developed tourism in Cape Verde with Riu Hotels. Even if demand fluctuates or drops at short notice, such as two years ago in Turkey or to Egypt, we can adapt our offer more quickly and flexibly. However, this is only possible if you have access to hotels and airplanes. With our integrated business model, we have precisely this flexibility and it is proving to be extremely successful.

How many passengers fly with TUI Airlines?

We have around 20 million customers a year, about half of whom fly with our own airlines. We are continuing to grow very strongly. However, our fleet is not getting any bigger, but is becoming more modern and more economical thanks to the conversion. The growth will be served by purchasing additional flight capacity.