Thomas Cook, Club Med To Strengthen Ties

British travel company Thomas Cook and France-based Club Méditerranée said they would look at sharing flights as part of a new plan underpinned by their common Chinese shareholder Fosun.

Thomas Cook and Club Med on Tuesday launched a three-year strategic partnership to cover Europe which would involve the sale of Club Med holidays through Thomas Cook channels and could lead to co-operation on flights.

The closer tie-up follows recent changes in both companies' ownership.

Chinese conglomerate Fosun completed its takeover of Club Med earlier this year. Then in March, it bought a 5 percent stake in Thomas Cook as part of a deal which it said could lead to greater collaboration between the two firms.

The pair, which already have a relationship in France, said that they would aim to achieve EUR€100 million (USD$109 million) of sales of Club Med holidays through Thomas Cook channels by 2018, an increase of 60 percent on current levels.

"This partnership aims to generate strong sales growth in the European countries where Thomas Cook is present, a real opportunity for both our groups," Club Med Chairman Henri Giscard d'Estaing said.

Thomas Cook, the world's oldest travel group and Europe's no.2 holiday company behind TUI, will report its third-quarter results on July 30. They are expected to indicate the costs to the business of cancelling holidays in Tunisia after an attack in June which killed 38 tourists.