Günter Endres/LONDON

Plans by tour operators Thomas Cook and the Carlson Leisure Group to merge are set to lead to a further consolidation of UK charter operators.

The deal, which is still subject to regulatory approval, could spell the end of the Caledonian Airways name and propel Thomas Cook-owned competitor Flying Colours Airline to enhanced prominence in the UK charter market.

Although the official line is that due account has to be taken of the strong Caledonian brand name before a decision is taken, adverse publicity in recent times may make it easier to restructure around the Flying Colours brand in the Thomas Cook stable. What is certain is that the airlines will be combined in time for the start of next year's summer season and there will be no place for the still lower-cost brand operation Peach Air.

The merger will provide Thomas Cook with valuable Caledonian slots at London Gatwick, to add to its Manchester base through Flying Colours. The group is expected to widen its provincial scope by setting up and and/or strengthening holiday flights at London Stansted, Bristol, Cardiff, Birmingham, Glasgow and Newcastle.

A stronger unified airline under the Flying Colours name would retain the number five position in the UK charter market in terms of passengers, behind Britannia Airways, Air 2000, Airtours International and Monarch, with about 4.15 million passengers a year, but will move into second place in the number of aircraft operated.

Flying Colours is already in the process of merging with another charter airline, Airworld, following Thomas Cook's acquisition of tour operator Sunworld this year.

Flying Colours and Airworld now operate six Boeing 757-200s, six Airbus A320s and two A321s, while the Caledonian and Peach Air fleets comprise five A320s, 10 Lockheed L1011 TriStars, two McDonnell Douglas DC-10-30s and one Boeing 737-200.

Source: Flight International