http://www.tuitravelplc.com/

TUI Travel is one of the world’s leading leisure travel groups, with over 220 trusted brands in 180 countries and more than 30 million customers.

‘Making travel experiences special’ underpins everything we do and keeps our focus on providing the unrivalled choice, professionalism and confidence our customers and stakeholders can rely on, now and in the future.

Our business is grouped into three sectors, comprising many of the best loved and market-leading travel brands worldwide – Mainstream, Accommodation & Destinations and Specialist & Activity. From the most popular holiday brands to an unparalleled collection of specialist travel providers, we offer the breadth and depth of experiences and expertise for every conceivable type of traveller.

We are a truly global business, employing approximately 55,000 people and operating in 31 key source markets worldwide. As a dynamic, influential company we are committed to responsible leadership in the travel sector. Our head office is in the UK and TUI Travel PLC is listed on the London Stock Exchange as a member of the FTSE 100 and FTSE4Good indices with the ticker code TT.

Proposed Purchase of Aircraft

RNS


RNS Number : 9775F

TUI Travel PLC

31 May 2013




31 May 2013

TUI Travel PLC

Proposed Purchase of 60 Narrow-Bodied Boeing 737 MAX Aircraft



- Commitment to purchase 60 Boeing 737 MAX aircraft (subject to shareholder approval)

- Option and right to purchase up to a further 90 Boeing 737 MAX aircraft

- Multi-billion pound investment in the future of the business

- Continuation of unique holidays strategy



TUI Travel PLC ("TUI Travel" or "the Group"), one of the world's leading leisure travel companies, is pleased to announce, subject to shareholder approval, a commitment to purchase 60 narrow-body Boeing 737 MAX aircraft from The Boeing Company ("Boeing") as part of its fleet renewal strategy and move to Modern Mainstream.



Key points of the proposed transaction:



- TUI Travel will purchase 60 Boeing 737 MAX aircraft powered by LEAP-1B engines manufactured by CFM International ("CFM").

- TUI Travel has secured a significant discount to the list price of each aircraft through various concessions, allowances and support from Boeing. At current list prices, the value of 60 Boeing 737 MAX aircraft that TUI Travel is committed to purchase is $6.09 billion (GBP £4 billion).

- TUI Travel has the option to acquire up to a further 60 Boeing 737 MAX aircraft on the same terms as the committed 60 aircraft.

- TUI Travel has been offered the right to purchase a further 30 Boeing 737 MAX aircraft on terms to be determined at the time of exercising this purchase right.

- The delivery period for the 60 committed aircraft will start in January 2018 and run until March 2023.

- 40 of these aircraft will be the Boeing 737 MAX-8 variant and 20 of these aircraft will be the Boeing 737 MAX-9 variant. The 737 MAX-9 variant offers circa 10% more seat capacity than the 737 MAX-8.

- The Group will also be required to purchase eight spare LEAP-1B engines from CFM to support the committed 60 aircraft at an aggregated list price of $104 million (GBP £68.7 million). TUI Travel has, however, secured substantial price concessions against this list price.



Benefits of the proposed transaction:



- Following the delivery of the aircraft, TUI Travel will continue to enjoy the benefits of a modern, fuel-efficient and cost-effective aircraft fleet.

- The 737 MAX aircraft utilise a new technology engine type from CFM which Boeing asserts results in a 13% improvement in fuel efficiency and a 40% noise reduction over today's main competitors.

- Lower per seat costs than current generation aircraft and competitor products.

- The 737 MAX aircraft incorporate the best future engine technology for unprecedented levels of efficiency, reliability and passenger appeal.



TUI Travel owns and operates six European airlines across its Mainstream Sector - Thomson Airways, TUIfly, TUIfly Nordic, ArkeFly, Jetairfly and Corsair - with 141 aircraft in aggregate. Five of these airlines operate 114 narrow-body aircraft between them serving short and medium-haul destinations. Approximately 80% of the Group's airline passengers travelled on narrow-bodied aircraft to short and medium-haul destinations for their holiday during the last financial year. Having a modern, cost-efficient and reliable fleet is strategically important to the Group. In order to maintain cost competitiveness and support TUI Travel's aim to minimise the environmental impact of its activities, the existing narrow-bodied aircraft will need to be replaced in the next decade. The proposed transaction will ensure that the Group has sufficient aircraft to fulfil its long-term plans and that the expected accrued value justifies the cost of the purchase.



Peter Long, Chief Executive of TUI Travel PLC, said:

"A major part of TUI Travel's strategy is to provide our customers with unique holiday experiences they can only get from us. This multi-billion pound investment in the B737 MAX - representing the future generation of more fuel-efficient aircraft for our short and medium-haul programmes - will be a further driver in delivering this. It comes as the first of our Boeing 787s touches down in the UK to commence replacement of our long-haul fleet with best in class aircraft. We are leading the way in re-defining mainstream holidays and putting our customers at the heart of everything we do is integral to our continued growth. I can confidently say that being able to offer our customers the most advanced, comfortable aircraft, whether they are travelling with us to short or long-haul destinations, while reducing our environmental impact, will only strengthen our position."



Shareholder Approval The proposed transaction is a Class 1 transaction for the purposes of the UK Listing Rules and consequently is subject to the approval of TUI Travel shareholders to whom a circular setting out details of the proposed transaction will be sent to in due course. Lazard is acting as Sponsor to TUI Travel for the purposes of the UK Listing Rules in relation to the proposed transaction.

31 May Morgan Stanley 320.00 Equal weight
31 May Credit Suisse 377.00 Neutral

3 Jun Deutsche Bank 320.00 Hold

14 Jun Morgan Stanley 320.00 Equal weight

21 Jun Morgan Stanley 320.00 Equal weight

28 Jun Morgan Stanley 320.00 Equal weight

TUI Travel signs new credit facility

Mon, 01 July 2013



TUI Travel has signed of a new medium-term £300m bank credit facility, maturing in April 2016.

The leisure company said the funds would be used to strengthen its capital structure and underpins its debt maturity profile over the coming years.

The transaction was co-ordinated by the Royal Bank of Scotland and involved a syndicate of the company's banks.

Covenants remain in line with those provided under the existing bank facilities.

Will Waggott, Chief Financial Officer, said: "We are pleased to have agreed this new credit facility which will improve the flexibility and strength within our capital structure and demonstrates the continued strong support for the group from our banks."

Result of Meeting

http://www.moneyam.com/action/news/showArticle?id=4629010

TUI Travel aircraft acquisition approved

StockMarketWire.com

Travel operator TUI Travel (TT.) announces that, at the General Meeting held on 9 July 2013, the resolution for the proposed purchase of Boeing Aircraft, as set out in the Notice of Meeting dated 14 June 2013, was duly passed on a poll.

At 12:06pm: (LON:TT.) share price was +0.55p at 374.25p


Story provided by StockMarketWire.com

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 379.90. Over this period, the share price is up 121.14%.

26 Jul Morgan Stanley 320.00 Equal weight

Interim Result


07 Aug 13 TUI Travel PLC [TT.]

1 Aug Deutsche Bank 335.00 Hold

2 Aug Morgan Stanley 320.00 Equal weight

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 390.50. Over this period, the share price is up 105.19%.

TUI Travel PLC (TT.:LSE) set a new 52-week high during today's trading session when it reached 401.50. Over this period, the share price is up 106.64%.

Wednesday's agenda: TUI Travel to make a splash
By John Harrington
August 06 2013, 6:48pm
Attention at TUi Travel will focus on current booking patterns and outlook commentsAttention at TUi Travel will focus on current booking patterns and outlook comments


Travel operator TUI travel may be in competition with Thomas Cook but it will have been heartened by its competitor's recent update, which showed that cold weather in Northern Europe earlier this year boosted holiday bookings, though the recent heat wave may have taken the shine off this uplift somewhat.

Morgan Stanley forecasts underlying earnings (EBIT) of £80mln, "once we adjust for the change in accounting of empty legs (-£10m) and the shift in Easter to March (-£11m)".

"GfK reported that by mid-June package holiday bookings in the UK were +4% in a leisure outbound market -2% overall, so while comps are getting tougher (lates market was very strong last year due to cold weather), it seems like package holiday sales remain strong.

"In Germany, GfK reported summer holiday package holiday sales +6% as of May, and TUI Germany’s CEO said sales had continued to improve since the H1 results, with strong bookings for beach destinations and weaker for local or nearby holidays, which are lower margin," Morgan Stanley said.

3rd Quarter Results

Third Quarter Results ended 30 June 2013 and Interim Management Statement

· Strong demand across key markets
· Demand for our unique holidays continues to grow
· Q3 underlying operating profit up by 18%1
· Very confident of achieving full year underlying operating profit growth of at least 10%2
· Well positioned to continue to deliver our five year growth roadmap.


Highlights

· Q3 Results

- Operating profit improved by £13m to £87m (excluding the impact of empty leg accounting1 which has no full year impact) despite an £11m impact from the timing of Easter. Underlying Q3 operating profit of £76m (Q3 2012: £74m).

- Continued market outperformance in the UK with strong margins, load factors and capacity growth.

- Strong trading in the Nordic region and Accommodation Wholesaler.

- Business improvement programme progressing to plan with £11m of cost savings delivered.

- Operational cashflow improvement of £198m in the third quarter compared with the same period last year.

· Sustained growth in demand for unique holidays

- Unique holiday bookings in the UK, Nordics and Germany increased by 14%, 11% and 9% year-on-year respectively for Summer 2013.

- Direct distribution sales in the UK and Nordics for Summer 2013 of 91% (2012: 90%) and 88% (2012: 87%) respectively.

- Online sales account for 47% (2012: 45%) in the UK and 69% (2012: 68%) in the Nordics.

- MyThomson mobile app launched into Apple App Store in June with high ratings and over 120,000 downloads to date. Develop once and roll out across all markets.

· Online Accommodation growth

- Accommodation Wholesaler continues to build a global leadership position with TTV up by 19% for Summer 2013.

· Positive current trading momentum

- Summer 2013: 84% of the overall Mainstream programme now sold.

- Strong high-season Summer 2013 trading in the UK and Nordics, revenues up 11% and 10% respectively.

- Encouraging start to Winter 2013/14 trading.

Panmure Gordon has maintained its 'hold' recommendation for travel operator TUI Travel despite strong trading in the third quarter, as it reiterated its preference for sector peer Thomas Cook.

"Whilst we believe TUI Travel is a strong operator with good long-term growth potential, in our view Thomas Cook offers more substantial upside from the improvement in underlying like-for-like trading, in addition to potential increases to cost savings targets and future dividend payments."

Numis ups target price from 375p to 400p, while downgrading to hold.

Shares today - Market report: TUI Travel experiences turbulence


On a day in which the FTSE 100 remains in the red, down 47 points to 6557.2 following falls overnight on Wall Street and in Asia, TUI Travel (TT.) tumbles the best part of 5% to 382.1p. Investors book profits after a strong share price run despite the £4.49 billion cap posting a cheery third quarter trading statement in which it flags strong demand in the UK and Nordics and growing demand for its unique holidays.

Operating profits rose 18% to £87 million in the quarter ended 30 June and with cost cutting going to plan, chief executive Peter Long is very confident of delivering underlying annual operating profits growth of at least 10%. As well as brisk high-season summer trade, Long says winter bookings for 2013/14 have begun strongly for the Crawley-based business. Highlighting the strength and resilience of the business model, Numis Securities upgrades its price target from 375p to 400p. However Panmure Gordon has a 315p price target for TUI and sticks with its ‘hold’ rating ‘based upon the stock trading at a premium to Thomas Cook (TCG), whilst holding less earnings growth potential, in our view.’