German travel giant TUI has launched two airline divisions - a low-fare arm in the UK and a charter division in Belgium.

UK-based Thomsonfly has started no-frills services from TUI-owned Coventry West Midlands International airport with 131-seat Boeing 737-500s operated by TUI's UK charter airline Britannia Airways.

This year Thomsonfly will operate four aircraft on services to Ibiza, Jersey, Malaga, Marseilles, Nice, Palma, Pisa, Rome, Valencia and Venice, but plans to increase the fleet to up to 12 aircraft within four years.

Services were launched last week despite a dispute with the local council, which says that limits on the size of the airport area open for development have been exceeded and that the airport's new owner needs to apply for the proper permission.

Meanwhile, TUI Belgium has been set up by TUI-owned tour operator Jetair and began operations on 1 April with five 737s - three -400s and two -800s - flying to destinations around the Mediterranean and in Egypt. A Boeing 767-300ER has been leased from Belgiumexel to fly Jetair'sÊlong-haul programme.

Source: Flight International