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TUI Seeks Cost Cuts At Tuifly - Report

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German travel and tourism group TUI aims to cut costs at its airline Tuifly by EUR€65 million (USD$88.9 million) each year by cutting back on free services for passengers and lowering staff costs, a German newspaper reported.

In exchange for cost cuts under the new program - dubbed "Max Thrust" - TUI Travel parent TUI will expand the fleet by four new aircraft for medium-haul flights and two planes for long-haul, daily Sueddeutsche Zeitung said on Monday, citing unnamed sources.

Tuifly plans to split its cabin into three classes from May and stop offering newspapers, inflight entertainment and blankets, it said.

That will account for EUR€30 million of cost cuts and the rest is to come from workers' concessions, it said.

"We are currently in talks that we want to conclude in the coming weeks," it cited Tuifly chief Dieter Nirschl as saying, adding he declined to comment on details of planned cost cuts.

Sueddeutsche said workers were being asked to do without pay increases and contribute to savings with early retirements. It said Tuifly was also considering shifting at least some of its 350 maintenance jobs to Romania.

Tuifly has 550 pilots and over 1000 flight attendants, according to the company's website.

(Reuters)

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