Tui is set to enter into discussions with its works councils and trade unions over plans to halve the size of its Tui fly fleet.
Central to the German travel giant’s plans will be merging its five European carriers to become a single company, based in Hanover.
This includes Tui Airways, the group’s UK carrier, as well as its German, Belgian, Dutch and Nordic divisions.
Its total fleet will be cut "to about half" of its current 39 aircraft according to Tui Fly managing director Oliver Lackmann.
This, said Lackmann, would result in job losses across technical, administrative and crew functions.
Hanover and Dusseldorf will be the carrier’s main departure airports, along with Frankfurt, Munich and Stuttgart.
Tui will guarantee roles until the end of 2021 while the proposed consolidation and restructuring efforts are ongoing.
"There is no doubt these are major changes and cutbacks for our employees and for the company," said Lackmann.
"The Tui fly fleet is too large for the customer base of our German Tui tour operator. We must reduce this fleet and work more closely together within the five airlines of the group."
Lackmann warned a failure to act would further increase Tui’s "competitive disadvantage" over other airlines.
MD Lackmann stressed that even before the coronavirus pandemic, the German airline market was characterised by "considerable overcapacity and fierce price competition"; he further revealed Tui was, at times, unable to fill seats with its own tour operator customers.
He added the effects of the pandemic would accelerate the need for consolidation.
"Our aim is to secure as many jobs as possible in Tui fly in the long term," said Lackmann. "However, this will only succeed if we adjust the size of the airline to a healthy and future-proof level.
"We are at the beginning, not at the end, of the negotiations on restructuring. The core of the plans is the announced adjustment of the fleet to about half of the current 39 aircraft.
"Central functions are to be more closely integrated across all five group airlines. In a first step, Tui’s European airlines will be merged under one company. This central flight division for Tui Group airlines will be based in Hanover.
"Tui fly plans to cut jobs in technical, administrative and crew functions since fewer aircraft will be used.
"In future, Tui fly intends to concentrate on the departure airports of Hanover and Düsseldorf as the largest fleet locations, as well as Frankfurt, Munich and Stuttgart."