Written by: James Field and Zvonimir Tolj
MIAMI — One of the globe’s largest tourism groups, the TUI Group has today announced with Boeing the delivery of their first 737 MAX 8. The group is to receive around 51 units of the type of an order placed back in 2013, which will be spread across its different subsidiaries. On top of this, TUI is to receive 18 737 MAX 10 aircraft and four more 787 Dreamliners.
“The 737 MAX is a great fit for TUI Group, with 14 percent lower carbon emissions and a 40 percent smaller noise footprint supporting its airline’s commitment to sustainability,” said Monty Oliver, vice president of European Sales, Boeing Commercial Airplanes. “We are honored by TUI Group’s continued confidence in our products and look forward to the many MAX deliveries that lie ahead.”
With the addition of their first #737MAX, @TUIGroup takes another step forward in operating Europe's most carbon efficient airlines. The clouds are sure to be smiling as you take to the skies! ☁️😃 https://t.co/sTPlnXWb13 #ThinkMAX pic.twitter.com/OhLd38WGat
— Boeing Airplanes (@BoeingAirplanes) January 30, 2018
The Boeing 737 MAX 8 traveled from Seattle, and Fritz Joussen, the CEO of the TUI Group, received it in Brussels to begin with the operations.
The first aircraft is going to the Group’s Belgian subsidiary registered as OO-MAX, which will operate across mainland Europe to the Belgian’s route portfolio. The group is the first customer in Europe to select the 737 MAX program as part of its fleet renewal due to current 757 and 767 aircraft getting far older.
TUI can now join carriers such as LOT Polish Airlines which are aiming, in Boeing’s words, to take another “step forward in operating Europe’s most carbon efficient airlines”.
TUI Group is headquartered in Hannover, Germany, and has six European airlines in France, UK, the Netherlands, Belgium, Sweden, and Germany. It operates over 1,800 travel agencies, and 300 hotels and resorts,
Opportunities for TUI?
With the aircraft being able to fly around 3,500 nautical miles on one tank, it means that the TUI Group could potentially venture outside of Europe as it is very well covered in the travel industry market. As the Americas are relatively covered under their network, they could focus more on the Middle Eastern market and potentially attempt to thrive there.
Whichever part of the subsidiary could do that is unknown as by the time all of the MAX aircraft are in their respective subsidiaries, any of them could do it. Based on the mileage of a 737 MAX, it could make it to Dubai from Manchester, as a matter of perspective.
However, even if they do have the Americas covered already, they could expand further than the East Coast. As they already have destinations such as Florida, they could venture up to New York, Atlanta and anywhere else that would be in the 3,500 nautical mile range.
It would be a significant opportunity for them to take and also to thrive in, not just in the airline industry but also in the travel industry and could open up further options for revenue.
This is a massive benefit to TUI as the 737 MAX is far more fuel efficient than the likes of the 757 and the 767. With it being able to cover a similar distance, it means that they can bring down their cost per seat and enhance savings for customers.
This, in turn, would effectively increase their competitiveness as a brand and could match themselves up against other groups such as Thomas Cook in the travel industry and maybe the likes of Emirates in the Middle East and the carriers operating to America also.
All-in-all, for TUI’s ever-changing portfolio, the 737MAX should be a suitable addition.
TUI Airlines operates a fleet of 150 aircraft with scheduled and charter flights to over 150 destinations around the world, departing from more than 60 airports in 9 European countries.