First Choice in merger talks

Two of the UK’s best-known tour operators were today reported to have held talks about creating a rival to market-leaders Tui and Thomas Cook.

The Financial Times said the preliminary merger discussions involved First Choice and Kuoni – Europe’s third and seventh-biggest firms respectively.

Switzerland-based Kuoni, which employs 7,500 people worldwide and has extensive operations in the UK, is the market leader in holidays to Asian destinations while First Choice’s brands include Unijet, Falcon and Sovereign.

A merger would fit well with First Choice’s recent strategy as it has increasingly turned away from the competitive short-haul market in order to focus on long-haul destinations and specialist holidays.

The FT said both sides declined to comment on the speculation and added that while the preliminary talks had been suspended they had not been terminated.