TUI seeks to calm workers over merger talks with Air Berlin unit

TUI sought to reassure 2,000 workers at its German airline arm that a merger with the tourism unit of Air Berlin would see the carrier retain its base in Hanover and continue to provide flights for the world’s largest holiday company. Jochen Buentgen, MD of the TUIfly airline unit, wrote to staff Monday saying the enlarged business would also retain existing labour accords and that he would put himself forward to run its operations. A wave of absenteeism disrupted TUIfly services for a second day Tuesday after Air Berlin said last week that it was seeking a “strategic solution” for its tourist operation. Buentgen’s memo confirmed that talks are underway between TUI and Air Berlin shareholder Etihad Airways on a possible combination of the assets. In an earlier letter, Henrik Homann, who has responsibility for TUI’s six airlines, told employees the company has “too much flight capacity” operating “at a cost significantly higher than market prices.” That makes a partnership with Air Berlin an “attractive option.” A combination would bring together TUIfly’s 27 planes, 19 from Air Berlin’s Austrian subsidiary Niki, which employs 840 people, and 14 that the TUI unit operates on behalf of the Berlin-based company under a 10-year lease deal. Air Berlin is separating out its tourism operation after splitting into three, with another unit operating 40 planes for Lufthansa and its main arm keeping 75.<br/>