Thomas Cook is in talks with Tui Travel, their rival, and Lufthansa of a potential merging with their budget and charter airlines, which is a move that will develop a new rival to compete with Air Berlin, easyJet, and Ryanair. In the most recent example of how the record high cost of fuel is forcing the restructuring of the aviation industry in Europe, Air Berlin, easyJet, and Ryanair said that they were in discussions of joining Germanwings, Tuifly, and Condor. Tui Travel and Lufthansa have been looking at a variety of merger options. Thomas Cook joined in on the discussions following last month when Air Berlin ditched the plans to purchase Condor, blaming it on the deteriorating conditions of the economy.

The news of discussions comes as the carriers are facing a large increase in the cost of fuel, as well as an economic outlook that keeps getting worse. Over 25 airlines across the globe have collapsed, claiming bankruptcy, and a lot of the carriers are now seeking to cut costs via mergers or reducing their capacity.

A merger between Germanwings, Tuifly, and Condor would make a mixed budget and charter airline next to Air Berlin, which is the biggest budget airline in Europe after easyJet and Ryanair. Even though the three firms said that discussions were in early stages and there couldn’t be any certainty of an agreement, Alex Paterson, a Liberum Capital analyst, says that if the merger is successful, it would be thrilling news for tour operators.

Find out more at: www.thomascook.com