Thomas Cook Group PLC Extended Partnership with Brussels Airlines (9990A)

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RNS Number : 9990A

Thomas Cook Group PLC

30 March 2017

Brussels Airlines set to become leading carrier for Thomas Cook Belgium under plans to expand existing partnership

-- Thomas Cook Belgium intends to use Brussels Airlines for the majority of its flight requirements

-- All 160 pilots and cabin crew, all flight slots, and two aircraft of Thomas Cook Airlines Belgium expected to transfer to Brussels Airlines on completion

Thomas Cook Belgium and Brussels Airlines today announce the intention to widen their existing partnership in a deal that will make Brussels Airlines the leading carrier for Thomas Cook Belgium. Under the terms of the proposal, Brussels Airlines will fly the majority of Thomas Cook's customers, offering them a wider choice of destinations, flights and departure days. Subject to completion of the deal, the operations of Thomas Cook Airlines Belgium (TCAB), Thomas Cook's in-house airline which currently serves the Belgian market, will be absorbed into Brussels Airlines.

The proposed deal will result in the transfer of all 160 pilots and cabin crew, all flight slots and two aircraft from TCAB to Brussels Airlines. TCAB's remaining three aircraft will be redeployed across the wider Thomas Cook Group while 40 ground staff roles with TCAB would be made redundant. A collective consultation process has been initiated with TCAB's workers' council and TCAB is committed to working constructively with them to find a successful resolution. As a result of this expanded partnership, Thomas Cook Belgium would cease using TCAB flights from November 2017.

The proposal builds upon a successful 15-year working relationship between Thomas Cook Belgium and Brussels Airlines, opening up further growth opportunities and enabling both companies to manage aircraft and personnel more efficiently and effectively.

In addition to giving Belgian customers the choice of more departure days and an expanded number of flights, the two companies will work together to assess the opportunity to launch new long-distance flights to sun and beach destinations in North America, the Caribbean, Africa and Asia over the next three years.

Jan Dekeyser, Managing Director of Thomas Cook Belgium, said: "Today's announcement is great news for Belgian holidaymakers. By extending our successful partnership with Brussels Airlines, Thomas Cook Belgium will offer customers from Neckermann, Thomas Cook and Pegase 20% more flights to some of the most popular sun and beach destinations. Across our brands, we will work together with Brussels Airlines to offer a tailor-made travel experience and build the most attractive holiday offering for Belgian consumers. Our extended partnership is consistent with Thomas Cook Group's strategy as we develop closer relationships with selected third parties to work with us to support profitable growth."

Bernard Gustin, Chief Executive of Brussels Airlines, said: "The combination of Brussels Airlines' network and expertise with Thomas Cook's holiday business will further improve the customer offer of Brussels Airlines. On completion, Brussels Airlines will double its sun and beach destinations to 51 with the addition of Cape Verde, Gran Canaria, Lanzarote and Egypt as brand new destinations on the flight schedule. We feel very optimistic about the opportunities for further expansion as we grow our business to the benefit of both customers and the Belgian economy."

The deal is subject to consultation with the Belgian workers' council and regulatory approvals.

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About Thomas Cook Belgium

Thomas Cook Belgium (TCB), with brands Neckermann, Thomas Cook, and Pegase, is one of the leading companies in the Belgian tourism industry, making the holiday dreams of over 1 million guests come true every year. TCB is a part of Thomas Cook Group plc, one of the world's leading leisure travel groups with sales of GBP7.8 billion in the year ended 30 September 2016. Thomas Cook is supported by 22,000 employees, operates from 16 source markets and is number one or two (by revenue) in all its core markets. Thomas Cook Group plc's shares are listed on the London Stock Exchange (TCG).

More information on Thomas Cook Belgium

About Brussels Airlines

Brussels Airlines, member of the Lufthansa Group and Star Alliance, is the Belgian airline that offers the widest choice of flights to and from the capital of Europe, Brussels Airport. The company has more than 3,500 employees and 50 aircraft operating some 300 flights daily, connecting the Capital of Europe to over 100 premium European and African destinations as well as New York JFK, Washington D.C. and Toronto. Brussels Airlines was founded in 2002 and is 100% owned by Deutsche Lufthansa AG.

More information on brusselsairlines.com

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March 30, 2017 04:00 ET (08:00 GMT)