TUI Group and Etihad Aviation Group will not continue their negotiations about the planned joint venture between the German aviation subsidiary TUI fly and Niki, an announcement by TUI said on Thursday.
The goal of the talks that launched between the two companies last year, was to form a strong European leisure airline that would have a fleet of around 60 aircraft, offer 15 million seats capacity per year and be focused on point-to-point flying to connect key European tourist markets.
“A strong European leisure airline continues to make great strategic sense. After all, the aviation sector is characterised by overcapacity in Germany,” Sebastian Ebel, member of TUI AG’s Executive Board in charge of Central Region (Germany, Austria, Switzerland, Poland) said.
TUI Group said that it remains prepared to contribute to the stabilisation of the German aviation market. “TUI therefore remains open for a partnership or the formation of joint ventures serving the strategic goal of reshaping the market,” the company said.