German tourism firm TUI assessing impact of rival Thomas Cook’s bankruptcy

Europe’s largest tourism group TUI announced that it is assessing the short-term impact of British travel giant Thomas Cook’s bankruptcy, saying its own business model “proves to be resilient.”

“We are currently assessing the short term impact of Thomas Cook’s insolvency under the current circumstances, on the final week of our FY19 financial result,” Friedrich Joussen, CEO of the Hanover-headquartered travel and tourism company, said in a statement.

Noting that the TUI’s vertically integrated business model “proves to be resilient” even in a challenging market environment, Joussen said that the past summer season is “closing out in line with expectations,” with strong results from its holiday experiences business, despite a few external challenges in airline business.

Thomas Cook announced Monday that it would be liquidating its assets and file for bankruptcy, leaving about 21,000 jobs worldwide at risk. About 135,300 passengers were still stranded abroad on Tuesday.

Joussen also said that the TUI is preparing measures to offer replacement flights to TUI customers who booked Thomas Cook Airlines flights that were no longer operated.

Both package holiday giants, the TUI and Thomas Cook were considered by many as close rivals on the market. Shares of the TUI shot up by more than 6 percent on Monday following the bankruptcy of Thomas Cook.

In an interview with German newspaper Handelsblatt, Joussen said it’s “still too early” to say that the TUI is a profiteer of Thomas Cook’s bankruptcy.