MAINSTREAM Mainstream is the largest sector in terms of size, underlying operating profit and employee numbers. It services over 25 million customers each year and comprises a number of the leading tour operators across Europe 1 operating a fleet of circa 146 aircraft and 3,500 retail shops. It operates within two key segments of the leisure travel market: Mainstream holidays - which include the sale of differentiated and exclusively available products, long haul travel as well as more traditional package holidays Component - which includes the sale of flights, accommodation, car hire, transfers and excursions either as separate components or together as part of customer assembled holidays FINANCIAL HIGHLIGHTS MAINSTREAM Year FY09 FY08 Revenue £11.7 billion £11.8 billion Profit/loss before tax £305 million £277 million KEY MANAGEMENT Dr Volker Böttcher – Managing Director, Central Europe, 50 After an early career in law, Volker joined TUI AG in 1987 as a legal advisor. Having occupied various management positions he was appointed Chairman for Central Europe in 2003, responsible for all tourism activities in the source markets of Germany, Austria, Switzerland and Poland for TUI AG. Following the merger of First Choice Holidays PLC and the Tourism Division of TUI AG in September 2007, Volker was appointed Managing Director, Central Europe and joined the Board of Directors of TUI Travel PLC. Bart Brackx – Managing Director, Western Europe, 46 Bart Brackx started his professional career at the tour operator Jetair in 1994 and went on to become Chief Executive Officer and President of the Board of Directors. In 2004, Bart was appointed Chief Executive of TUI Belgium and went on to become Divisional Director of TUI AG in charge of the Western Europe source market. Following the merger of First Choice Holidays PLC and the Tourism Division of TUI AG in September 2007, Bart was appointed Managing Director, Western Europe and joined the Board of Directors of TUI Travel PLC. Johan Lundgren – Managing Director, Northern Region, 42 Johan has worked in the Nordic tourism industry for almost twenty years. In 2001 Johan become Chief Executive of TUI Nordic and also took responsibility for tourism sales in the source markets of Italy and Russia for TUI AG. Following the merger of First Choice Holidays PLC and the Tourism Division of TUI AG in September 2007, Johan became Managing Director for Northern Europe, TUI Travel PLC, which includes all Mainstream tourism sales in the UK, Canada, Sweden, Norway, Denmark and Finland. He also sits on the Board of Directors of TUI Travel PLC. 1 The majority of TT PLC aircraft are on lease back arrangements, which means TT PLC can operate a flexible business model whilst securing continued access to modern and fuel- efficient aircraft. CENTRAL EUROPE The Central Europe division comprises the distribution and tour operating businesses in Germany, Switzerland, Austria and the Eastern European markets. It also includes the German airline TUIfly. Germany TUI Deutschland is the leading travel and tourism company in Central Europe with the largest market share in Germany. It works as an integrated travel company offering classic package, component and speciality holidays. Other brands include, 1-2-FLY, airtours, Discount Travel, Gebeco and L’TUR Austria Key brands include TUI Austria, Delphin Touristik, Gulet Touristik and Terra Reisen Switzerland Key brands include TUI Suisse, Flex Travel, Voegele Reisen, 1-2 FLY, ROBINSON Club and Club MAGIC LIFE Poland Key brands include TUI Poland, Scan Holiday and TUI Centrum Podrozy NORTHERN REGION The Northern Region division comprises the distribution and tour operating businesses in the source markets of the UK, Ireland, Canada and the Nordic countries. It also includes the airlines TUIfly Nordic and ThomsonAirways (combined UK airline from May 2009). UK & Ireland TUI UK & Ireland features several of the largest travel brands in the UK, including the well-established First Choice and Thomson brands and Falcon and JWT in Ireland. The combined businesses serve more than 7 million customers every year, have almost 1,000 shops across the UK and the merger of Thomsonfly and First Choice Airways has created the UK’s third largest airline. With more than 100 destinations worldwide, they offer a wide range of holiday products in short, mid and long haul destinations. Nordics Provide holidays in the four Nordic markets - Sweden, Norway, Denmark, and Finland - and operate out of 37 departure airports. Key brands include Fritidsresor, Finnmatkat, Star Tour, NAZAR and TEMA. The product range includes special family products, self-catering, long-haul and luxury holidays. The Nordics has the largest proportion of online travel in Europe. Differentiated product offering includes the Nordic Blue concept. Canada The brands include Signature Vacations an outbound tour operator providing package sun holidays to all-inclusive resorts in Mexico, Cuba, and Dominican Republic. Signature also offers exclusive packages in emerging destination such as St Kitts and Belize, and provides unique vacation options such as escorted tours and volunteer holidays. SellOffVacations is the first and largest online discount travel retailer in Canada, supported by a call centre and 35 shops. It provides value vacation packages, airfares, cruises, tours, and car rentals. WESTERN EUROPE The Western Europe division comprises the distribution and tour operating businesses in France, Belgium and the Netherlands as well as the following airlines: Corsairfly (France), Arkefly (Netherlands), Jetairfly (Belgium) and Jet4you.com (Morocco). France Nouvelles Frontières is the largest tour operator in France. Other TUI brands include Marmara, Havas Voyages and TUI France. These brands put together tours and holidays, some of which use their in-house club-hotel chains Paladien and Koudou. Belgium Jetair is the largest holiday brand in Belgium, active in flight holidays, car holidays and citytrips. Flight holiday destinations are situated around the Mediterranean, Red Sea, Canary Islands and Caribbean. Car holidays and citytrips are all over Europe. The other tour operator brands are Sunjets (direct seller) VIP Selection (premium holidays), VTB (cultural tours) and Seagull (UK and Ireland). Netherlands TUI Netherlands is the only vertically integrated tour operator for the Dutch source market. It operates through 140 own agencies (branded Arke) and 80 franchises (under the name Holland International Reisbureau). Holland International is an all-round tour operator and destination specialist. It has over 50 travel brochures per season and its own holiday clubs in the Mediterranean. Other brands include Kras (tour operator) and Lastminute.nl (online travel shop).