TUI left frustrated as Etihad walks away from talks

TUI Group has been left hanging after United Arab Emirates based Etihad Aviation walked away from talks about a potential joint venture between the German aviation subsidiary TUI fly and Niki.

The Anglo-German group said the talks had been looking to "form a strong European leisure airline" but the UAE group's Vienna-based Niki was "no longer available".

Sebastian Ebel, a member of TUI board in charge of central Europe said: “A strong European leisure airline continues to make great strategic sense. After all, the aviation sector is characterised by overcapacity in Germany.

"However, Niki is no longer available for a joint venture. We will push the repositioning of TUI fly further ahead in order to develop long-term prospects for the airline and its employees.”

TUI Group put out public feelers for any other carriers that were listening.

The FTSE 100-listed company said it was "prepared to contribute to the stabilisation of the German aviation market" and "remains open for a partnership or the formation of joint ventures" serving the strategic goal of reshaping the market.