• #Air_Partner: the Home Office’s little-known deportation fixer

    International travel megacorp #Carlson_Wagonlit_Travel (#CWT) holds a £5.7 million, seven-year contract with the Home Office for the “provision of travel services for immigration purposes”, as it has done for nearly two decades. However, a key part of its work – the chartering of aircraft and crew to carry out the deportations – has been subcontracted to a little-known aviation charter outfit called Air Partner.

    Summary

    Digging deeper into Air Partner, we found a company which has been quietly organising mass deportations for the Home Office for years. We also learnt that:

    It likely arranged for the airline #Privilege_Style to carry out the aborted flight to #Rwanda, and will seek another airline if the Rwanda scheme goes ahead.
    It has organised deportation logistics for the US and several European governments.
    It is currently one of four beneficiaries of a €15 million framework contract to arrange charter deportations for the European Coast Guard and Border Agency, #Frontex.
    The company grew off the back of military contracts, with profits soaring during the ‘War on Terror’, the Arab Spring, and the Covid-19 pandemic.
    Its regular clients include politicians, celebrities and sports teams, and it recently flew teams and fans to the FIFA World Cup in Qatar.
    Air Partner was bought in spring 2022 by American charter airline, Wheels Up, but that company is in troubled financial waters.

    Air Partner: Home Office deportation broker

    In Carlson Wagonlit’s current contract award notice, published on the EU website Tenders Electronic Daily, the “management and provision of aircraft(s) charter services” is subcontracted to Air Partner – a detail which is redacted in documents on the UK government’s procurement site. In other words, when the Home Office wants to carry out a mass deportation flight, the task of finding the airline is delegated to Air Partner.

    The contract stipulates that for each charter flight, Air Partner must solicit bids from at least three potential airlines. Selection is on the basis of value for money. However, the contract also states that “the maximum possible flexibility “ is expected from the carrier in terms of dates and destinations. The winning bidder must also be morally comfortable with the work, although it is not clear at what point in the process a first-time deportation airline is fully informed of the nature of the task.

    The contract suggests that airlines like #Privilege_Style, #Titan_Airways, #Hi_Fly and #TUI, therefore, owe their entry into the UK deportation business to Air Partner, which effectively acts as gatekeeper to the sector. Meanwhile, #Carlson_Wagonlit books the tickets, oversees the overall operation, arranges deportations on scheduled flights, and liaises with the guards who physically enforce the expulsion (currently supplied by the company that runs Manston camp, Mitie, in a Home Office escorting contract that runs until 2028).

    The latest deal between the Home Office and Carlson Wagonlit was awarded in 2017 and runs until 31st October 2024. It is likely that Air Partner makes money through a commission on each deportation flight.

    Flying for Frontex

    Yet Air Partner isn’t just the UK government’s deportation dealer. Its Austrian branch is currently one of four companies which organise mass expulsions for the European Coast Guard and Border Agency, Frontex, in a €15 million framework contract that was renewed in August 2022. A framework contract is essentially a deal in which a few companies are chosen to form a pool of select suppliers of particular goods or services, and are then called upon when needed. The work was awarded without advertising, which Frontex can do when the tender is virtually identical as in the previous contract.

    Frontex organises deportation charter flights – either for multiple EU states at a time (where the plane stops to pick up deportees from several countries) – or for a single state. The Agency also arranges for individuals to be deported on regular commercial flights.

    Air Partner’s work for Frontex is very similar to its work for the Home Office. It sources willing aircraft and crew, obtains flight and landing permits, and organises hotels – presumably for personnel – “in case of delays”. The other beneficiaries of the framework contract are #Air_Charter_Service, #Professional_Aviation_Solutions, and #AS_Aircontact.

    Air Charter Service is a German company, sister of a Surrey-based business of the same name, and is owned by Knightsbridge private equity firm, #Alcuin_Capital_Partners. Professional Aviation Solutions is another German charter company, owned by #Skylink_Holding. Finally, Norwegian broker AS Aircontact is a subsidiary of travel firm #Aircontact_Group, ultimately owned by chairman #Johan_Stenersen. AS Aircontact has benefited from the Frontex deal for many years.

    The award was given to the four companies on the basis of lowest price, with each bidder having to state the price it was able to obtain for a range of specified flights. The companies then bid for specific deportations, with the winner being the one offering best value for money. Air Partner’s cut from the deal in 2021 was €2.7 million.

    The contract stipulates the need for total secrecy:

    [The contractor] Must apply the maximum discretion and confidentiality in relation to the activity… must not document or share information on the activity by any means such as photo, video, commenting or sharing in social media, or equivalent.

    The Frontex award effectively means that Air Partner and the other three firms can carry out work on behalf of all EU states. But the company’s involvement with deportations doesn’t stop there: Air Partner has also profited for years from similar contracts with a number of individual European governments.

    The company has done considerable work in Ireland, having been appointed as one of its official deportation brokers back in 2005. Ten years later, the Irish Department of Justice was recorded as having paid Air Partner to carry out a vaguely-described “air charter” job (on a web page that is no longer available), while in 2016 the same department paid Air Partner €240,000 for “returns air charter” – government-speak for deportation flights.

    Between August 2021 and February 2022, the Austrian government awarded the company six Frontex-funded deportation contracts, worth an estimated average of €33,796.

    The company also enjoys a deportation contract with the German government, in a deal reviewed annually. The current contract runs until February 2023.

    Finally, Air Partner has held deportation contracts with US Immigration and Customs Enforcement (ICE) and has been involved in deporting Mexican migrants to the US as far back as the early 2000s.1
    Relationship with the airlines

    In the first half of 2021, 22 of the EU’s 27 member states participated in Frontex flights, with Germany making far greater use of the ‘service’ than any other country. The geographic scale of Air Partner’s work gives an indication of the privileged access it has as gatekeeper to Europe’s lucrative ‘deportation market’, and ultimately, the golden land of government contracts more generally.

    For example, British carrier Titan Airways – which has long carried out deportations for the Home Office – only appears to have broken into this market in Germany and Austria in 2018 and 2019, respectively. As Corporate Watch has documented, other airlines such as Privilege Style, #AirTanker, #Wamos and #Iberojet (formerly, #Evelop) regularly run deportation flights for a number of governments, including the UK. We can assume that Air Partner’s relationships with the firms are key to these companies’ ability to secure such deals in new markets.

    Some of these relationships are clearly personal: #Alastair_Wilson, managing director of Titan Airways, worked as trading manager for Air Partner for seven years until he left that firm for Titan in 2014. By 2017, Titan was playing a major role in forcible expulsions from the UK.

    The business: from military money to deportation dealer

    Air Partner’s origins are in military work. Founded in 1961, the company started its life as a training centre which helped military pilots switch to the commercial sector. Known for much of its history as Air London, it has enjoyed extensive Ministry of Defence deals for troop rotations and the supply of military equipment. Up until 2010, military contracts represented over 60% of pre-tax profits. However, in recent years it has managed to wean itself off the MOD and develop a more diverse clientele; by 2018, the value of military contracts had dropped to less than 3% of profits.

    The company’s main business is in brokering aircraft for charter flights, and sourcing planes from its pool of partner airlines at the request of customers who want to hire them. It owns no aircraft itself. Besides governments and wealthy individuals, its current client base includes “corporates, sports and entertainment teams, industrial and manufacturing customers, and tour operators.”

    Its other source of cash is in training and consultancy to government, military and commercial customers through three subsidiaries: its risk management service Baines Simmons, the Redline Security project, and its disaster management sideline, Kenyon Emergency Services. Conveniently, while the group’s main business pumps out fossil fuels on needless private flights, Kenyon’s disaster management work involves among other things, preparing customers for climate change-induced natural disasters.

    Despite these other projects, charter work represents the company’s largest income stream by far, at 87% of the group’s profits. Perhaps unsurprisingly, the majority of this is from leasing large jets to customers such as governments, sports teams and tour operators. Its second most lucrative source of cash is leasing private jets to the rich, including celebrities. Finally, its freight shipments tend to be the least profitable division of its charter work.

    The company’s charter division continues to be “predominantly driven by government work”.2 It has been hired by dozens of governments and royal families worldwide, and almost half the profits from its charter work now derive from the US, although France has long been an important market too.

    Ferrying the mega-rich

    Meanwhile, Air Partner’s work shuttling politicians and other VIPs no doubt enables the company to build up its bank of useful contacts which help it secure such lucrative government deals. Truly this is a company of the mega-rich: a “last-minute, half-term holiday” with the family to Madeira costs a mere £36,500 just for the experience of a private jet. It was the first aircraft charter company to have held a Royal Warrant, and boasts of having flown US election candidates and supplying George W Bush’s press plane.3

    The “group charter” business works with bands and sports teams. The latter includes the Wales football team, Manchester City, Manchester United, Chelsea and Real Madrid, while the Grand Prix is “always a firm fixture in the charter calendar”.4 It also flew teams and fans to the controversial 2022 FIFA World Cup in Qatar.5

    Crisis profiteer: the War on Terror, the Arab Spring & Covid-19

    Air Partner has cashed in on one crisis after the next. Not only that, it even contributes to one, and in so doing multiplies its financial opportunities. As military contractor to belligerent Western forces in the Middle East, the company is complicit in the creation of refugees – large numbers of whom Air Partner would later deport back to those war zones. It feeds war with invading armies, then feasts on its casualties.

    The company reportedly carried at least 4,000t of military supplies during the first Gulf War. The chairman at the time, Tony Mack, said:

    The Gulf War was a windfall for us. We’d hate to say ‘yippee, we’re going to war’, but I guess the net effect would be positive.6

    And in its financial records over the past twenty years, three events really stand out: 9/11 and the ‘War on Terror’, the Arab Spring, and the Covid-19 pandemic.

    9/11 and the subsequent War on Terror was a game changer for the company, marking a departure from reliance on corporate customers and a shift to more secure government work. First – as with the pandemic – there was a boom in private jet hire due to “the number of rich clients who are reluctant to travel on scheduled services”.7

    But more significant were the military contracts it was to obtain during the invasions of Afghanistan and Iraq. During the occupation of Afghanistan, it “did a lot of freighting for the military”,8 while later benefiting from emergency evacuation work when coalition foreign policy came to its inevitably grim conclusion in 2021.

    It enjoyed major military assignments with coalition forces in Iraq,9 with the UK’s eventual withdrawal resulting in a 19% drop in freight sales for the company. At one point, Air Partner lamented that its dip in profits was in part due to the temporary “cessation of official hostilities” and the non-renewal of its 2003 “Gulf contracts”.

    9/11 and the aggression that followed was a boon for Air Partner’s finances. From 2001-02, pre-tax profits increased to then record levels, jumping 85% from £2.2 million to £4 million. And it cemented the company’s fortunes longer-term; a 2006 company report gives insight into the scale of the government work that went Air Partner’s way:

    … over the last decade alone, many thousands of contracts worth over $500m have been successfully completed for the governments of a dozen Western Powers including six of the current G8 member states.

    Two years on, Air Partner’s then-CEO, #David_Savile, was more explicit about the impact of the War on Terror:

    Whereas a decade ago the team was largely servicing the Corporate sector, today it majors on global Government sector clients. Given the growing agenda of leading powers to pursue active foreign policies, work levels are high and in today’s climate such consistent business is an important source of income.

    Profits soared again in 2007, coinciding with the bloodiest year of the Iraq war – and one which saw the largest US troop deployment. Its chairman at the time said:

    The events of 9/11 were a watershed for the aviation industry…since then our sales have tripled and our profitability has quadrupled. We now expect a period of consolidation… which we believe will present longer term opportunities to develop new business and new markets.

    It seems likely that those “new markets” may have included deportation work, given that the first UK charter deportations were introduced by the New Labour government in 2001, the same year as the invasion of Afghanistan.

    Another financial highlight for the company was the 2011 Arab Spring, which contributed to a 93% increase in pre-tax profits. Air Partner had earlier won a four-year contract with the Department for International Development (DfID) to become its “sole provider of passenger and freight air charter services”, and had been hired to be a charter broker to the Foreign and Commonwealth Office Crisis Centre.

    As people in Libya, Egypt, Bahrain and Tunisia took to the streets against their dictators, the company carried out emergency evacuations, including for “some of the largest oil companies”. A year later, it described a “new revenue stream from the oil & gas industry”, perhaps a bonus product of the evacuation work.

    Finally, its largest jump in profits was seen in 2021, as it reaped the benefits of converging crises: the pandemic, the evacuation of Afghanistan, and the supply chain crisis caused by Brexit and the severe congestion of global sea-shipping routes. The company was tasked with repatriation flights, PPE shipments, and “flying agricultural workers into the UK from elsewhere in Europe”, as well as responding to increased demand for “corporate shuttles” in the UK and US.10 Pre-tax profits soared 833% to £8.4 million. It made a gross profit of approximately £45 million in both 2021 and 2022. The company fared so well in fact from the pandemic that one paper summed it up with an article entitled “Air Partner takes off after virus grounds big airlines”.

    While there is scant reporting on the company’s involvement in deportations, The Times recently mentioned that Air Partner “helps in the deporting of individuals to Africa and the Caribbean, a business that hasn’t slowed down during the pandemic”. In a rare direct reference to deportation work, CEO Mark Briffa responded that it:

    …gives Wheels Up [Air Partner’s parent company] a great opportunity to expand beyond private jets…It was always going to be a challenge for a company our size to scale up and motor on beyond where we are.

    Yet Briffa’s justification based on the apparent need to diversify beyond VIP flights looks particularly hollow against the evidence of decades of lucrative government work his company has enjoyed.

    When asked for comment, a spokesperson from the company’s PR firm TB Cardew said:

    As a policy, we do not comment on who we fly or where we fly them. Customer privacy, safety and security are paramount for Air Partner in all of our operations. We do not confirm, deny or comment on any potential customer, destination or itinerary.

    The parent company: Wheels Up

    Air Partner was bought in spring 2022 for $108.2 million by Wheels Up Experience Inc, a US charter airline which was recently listed on the New York Stock Exchange. The company calls itself one of the world’s largest private aviation companies, with over 180 owned or long-term leased aircraft, 150 managed fleet (a sort of sharing arrangement with owners), and 1,200 aircraft which it can hire for customers when needed.

    In contrast to Air Partner, its new owner is in deep trouble. While Wheels Up’s revenues have increased considerably over the past few years (from $384 million in 2019 to $1.2 billion in 2022), these were far outweighed by its costs. It made a net loss in 2021 of $190 million, more than double that of the previous year. The company attributes this to the ongoing impact of Covid-19, with reduced crew availability and customer cancellations. And the situation shows no sign of abating, with a loss of $276.5 million in the first nine months of this year alone. Wheels Up is responding with “aggressive cost-cutting”, including some redundancies.

    #Wheels_Up is, in turn, 20% owned by #Delta_Airlines, one of the world’s oldest and largest airlines. Mammoth asset manager Fidelity holds an 8% share, while Wheels Up’s CEO #Kenneth_Dichter owns 5%. Meanwhile, the so-called ‘Big Three’ asset managers, BlackRock, Vanguard and State Street each hold smaller shareholdings.

    Among its clients, Wheels Up counts various celebrities – some of whom have entered into arrangements to promote the company as ‘brand ambassadors’. These apparently include Jennifer Lopez, American football players Tom Brady, Russell Wilson, J.J. Watt, Joey Logano, and Serena Williams.

    Given Wheel’s Up’s current financial situation, it can be safely assumed that government contracts will not be easily abandoned, particularly in a time of instability in the industry as a whole. At the same time, given the importance of Wheels Up as a brand and its VIP clientele, anything that poses a risk to its reputation would need to be handled delicately by the company.

    It also remains to be seen whether Wheels Up will use its own fleet to fulfil Air Partner’s contracting work, and potentially become a supplier of deportation planes in its own right.
    Top people

    Air Partner has been managed by CEO #Mark_Briffa since 2010. A former milkman and son of Maltese migrants, Briffa grew up in an East Sussex council house and left school with no O or A levels. He soon became a baggage handler at Gatwick airport, eventually making his way into sales and up the ladder to management roles. Briffa is also president of the parent company, Wheels Up.

    #Ed_Warner OBE is the company’s chair, which means he leads on its strategy and manages the board of directors. An Oxbridge-educated banker and former chair of UK Athletics, Warner no doubt helps Air Partner maintain its connections in the world of sport. He sits on the board of private equity fund manager HarbourVest, and has previously been chairman of BlackRock Energy and Resources Income Trust, which invests in mining and energy.

    #Kenny_Dichter is founder and CEO of Air Partner’s US parent company, Wheels Up. Dichter is an entrepreneur who has founded or provided early investment to a list of somewhat random companies, from a chain of ‘wellness’ stores, to a brand of Tequila.

    #Tony_Mack was chairman of the business founded by his parents for 23 years and a major shareholder, before retiring from Air Partner in 2014. Nowadays he prefers to spend his time on the water, where he indulges in yacht racing.

    Some of Air Partner’s previous directors are particularly well-connected. #Richard_Everitt, CBE held the company chairmanship from 2012 until 2017. A solicitor by training, prior to joining Air Partner Everitt was a director of the British Aviation Authority (BAA) and chief executive of National Air Traffic Services (Nats), and then CEO of the Port of London Authority (PLA). Since leaving the PLA, he has continued his career on the board of major transport authorities, having twice been appointed by the Department of Transport as chair of Dover Harbour Board, a two-day per week job with an annual salary of £79,500. He also served as a commissioner of Belfast Harbour.

    One figure with friends in high places was the Hon. #Rowland_John_Fromanteel_Cobbold, who was an Air Partner director from 1996 to 2004. Cobbold was the son of 1st Baron Cobbold, former Governor of the Bank of England and former Lord Chamberlain, an important officer of the royal household. He was also grandson of Victor Bulwer-Lytton, 2nd Earl of Lytton and governor of Bengal, and younger brother of 2nd Baron Cobbold, who was a crossbench peer.

    #Lib_Dem peer #Lord_Lee of Trafford held significant shares in Air Partner from at least 2007 until the company was bought by Wheels Up in 2022. Lord Lee served as parliamentary undersecretary for MOD Procurement under Margaret Thatcher, as well as Minister for Tourism. In 2015 the value of his 113,500 shares totalled £446,000. His shares in the company were despite having been Lib Dem party spokesman on defence at the time. Seemingly, having large stakes in a business which benefits from major MOD contracts, whilst simultaneously advocating on defence policy was not deemed a serious conflict of interest. The former stockbroker is now a regular columnist for the Financial Times. Calling himself the “first ISA millionaire”, Lee published a book called “How to Make a Million – Slowly: Guiding Principles From a Lifetime Investing”.

    The company’s recent profits have been healthy enough to ensure that those at the top are thoroughly buffered from the current cost of living crisis, as all executive and non-executive directors received a hefty pay rise. Its 2022 Annual Report reveals that CEO Mark Briffa’s pay package totalled £808,000 (£164,000 more than he received in 2021) and outgoing Chief Financial Officer Joanne Estell received £438,000 (compared with £369,000 in 2021), not to mention that Briffa and Estell were awarded a package in spring 2021 of 100% and 75% of their salary in shares. Given the surge in Air Partner’s share price just before the buyout, it’s likely that the net worth of its directors – and investors like Lord Lee – has significantly increased too.

    Conclusion

    What really is the difference between the people smugglers vilified daily by right-wing rags, and deportation merchants like Air Partner? True, Air Partner helps cast humans away in the opposite direction, often to places of danger rather than potential safety. And true, smugglers’ journeys are generally more consensual, with migrants themselves often hiring their fixers. But for a huge fee, people smugglers and deportation profiteers alike ignore the risks and indignities involved, as human cargo is shunted around in the perverse market of immigration controls.

    In October 2022, deportation airline Privilege Style announced it would pull out of the Rwanda deal following strategic campaigning by groups including Freedom from Torture and SOAS Detainee Support. This is an important development and we can learn lessons from the direct action tactics used. Yet campaigns against airlines are continuously being undermined by Air Partner – who, as the Home Office’s deportation fixer, will simply seek others to step in.

    And under the flashing blue lights of a police state, news that an airline will merely be deporting refugees to their countries of origin – however dangerous – rather than to a distant African processing base, might be seen as wonderful news. It isn’t. Instead of becoming accustomed to a dystopian reality, let’s be spurred on by the campaign’s success to put an end to this cruel industry in its entirety.
    Appendix: Air Partner Offices

    Air Partner’s addresses, according to its most recent annual report, are as follows:

    - UK: 2 City Place, Beehive Ring Road, Gatwick, West Sussex RH6 0PA.
    - France: 89/91 Rue du Faubourg Saint-Honoré, 75008 Paris & 27 Boulevard Saint-Martin, 75003 Paris.
    - Germany: Im Mediapark 5b, 50670 Köln.
    - Italy: Via Valtellina 67, 20159 Milano.
    - Turkey: Halil Rıfatpaşa Mh Yüzer Havuz Sk No.1 Perpa Ticaret Merkezi ABlok Kat.12 No.1773, Istanbul.

    Footnotes

    1 Aldrick, Philip. “Worth teaming up with Air Partner”. The Daily Telegraph, October 07, 2004.

    2 “Air Partner makes progress in the face of some strong headwinds”. Proactive Investors UK, August 27, 2021.

    3 Aldrick, Philip. “Worth teaming up with Air Partner”. The Daily Telegraph, October 07, 2004.

    4 Lea, Robert. “Mark Briffa has a new partner in aircraft chartering and isn’t about to fly away”. The Times, April 29, 2022

    5 Ibid.

    6 “AirPartner predicts rise in demand if Gulf war begins”. Flight International, January 14 2003.

    7 “Celebrity status boosts Air Partner”. Yorkshire Post, October 10, 2002.

    8 Baker, Martin. “The coy royal pilot”. The Sunday Telegraph, April 11, 2004.

    9 Hancock, Ciaran. “Air Partner”. Sunday Times, April 10, 2005.

    10 Saker-Clark, Henry. “Repatriation and PPE flights boost Air Partner”. The Herald, May 6, 2020.

    https://corporatewatch.org/air-partner-the-home-offices-deportation-fixer
    #avions #compagnies_aériennes #Home_Office #UK #Angleterre #renvois #expulsions #business #complexe_militaro-industriel

    via @isskein

  • The two sides of TUI : crisis-hit holiday giant turned deportation specialist

    2020 was a rough year for the tourism industry, with businesses worldwide cancelling holidays and laying off staff. Yet one company has been weathering the storm with particular ruthlessness: the Anglo-German giant TUI.

    TUI (Touristik Union International) has been called the world’s biggest holiday company. While its core business is selling full-package holidays to British and German families, 2020 saw it taking on a new sideline: running deportation charter flights for the UK Home Office. In this report we look at how:

    - TUI has become the main airline carrying out charter deportation flights for the UK Home Office. In November 2020 alone it conducted nine mass deportations to 19 destinations as part of Operation Sillath, and its deportation flights continue in 2021.
    - TUI lost over €3 billion last year. But the money was made up in bailouts from the German government, totalling over €4 billion.
    – TUI’s top owner is oligarch Alexey Mordashov, Russia’s fourth richest billionaire who made his fortune in the “Katastroika” of post-Soviet asset sell-offs. His family holding company made over €100 million in dividends from TUI in 2019.
    – In 2020, TUI cut 23,000 jobs, or 32% of its global workforce. But it carried on paying out fat salaries to its bosses – the executive board waived just 5% of their basic pay, with CEO Fritz Joussen pocketing €1.7 million.
    – Other cost-cutting measures included delaying payments of over €50m owed to hotels in Greece and Spain.
    - TUI is accused of using its tourist industry muscle to pressure the Greek government into dropping COVID quarantine requirements last Summer, just before the tourist influx contributed to a “second wave” of infections.
    – It is also accused of pressuring hotels in the Canary Islands to stop hosting migrants arriving on wooden boats, fearing it would damage the islands’ image in the eyes of TUI customers.

    TUI: from heavy industry to holiday giant

    Calling itself the ‘world’s leading tourism group’, TUI has 277 direct and indirect subsidiaries. The parent company is TUI AG, listed on the London Stock Exchange and based in Hannover and Berlin.

    TUI describes itself as a ‘vertically-integrated’ tourism business. That means it covers all aspects of a holiday: it can take care of bookings, provide the planes to get there, accommodate guests in hotels and cruises, and connect them with ‘experiences’ such as museum vists, performances and excursions. Recent company strategy buzz highlights the use of digitalisation – ‘driving customers’ into buying more services via its apps and online platforms. Where it can’t do everything in-house, TUI also uses other airlines and works extensively with independent hotels.

    TUI’s major assets are:

    - Hotels. By September 2020 the company ran over 400 hotels, the most profitable of which is the RIU chain, a company jointly owned by the Mallorca-based RIU family.
    - Cruises. TUI owns three cruise companies – TUI Cruises, Hapag-Lloyd Cruises and Marella Cruises – which between them operate 17 vessels.
    - Airlines. TUI has five airlines with a total fleet of 137 aircraft. 56 of these are operated by its biggest airline, the British company TUI Airways. Collectively, the airlines under the group are the seventh largest in Europe.

    TUI also runs the TUI Care Foundation, its vehicle for green PR, based in the Hague.

    The company has a long history dating back to 1923 – though it is barely recognisable from its earlier embodiment as the energy, mining and metalworking group Preussag, originally set up by the German state of Prussia. Described by some as the “heavy industrial arm” of the Nazi economy, Preussag was just one of many German industrial firms which benefited from forced labour under the Third Reich. It transformed itself into a tourism business only in 1997, and completed a long string of acquisitions to become the behemoth it is today – including acquiring leading British travel agents Thomson in 2000 and First Choice Holidays in 2007.

    TUI holidaymakers are mostly families from the UK and Germany, with an average ticket for a family of four costing €3,500 . The top five destinations as of Easter 2019 were, in order: Spain, Greece, Egypt, Turkey, and Cape Verde.

    The UK branch – including TUI Airways, which is responsible for the deportations – is run out of Wigmore House, next to Luton Airport in Bedfordshire. The UK managing director is Andrew “Andy” Flintham. Flintham has been with TUI for over 15 years, and previously worked for British Airways and Ford.

    Dawn Wilson is the managing director of TUI Airways. and head of airline operations on the TUI aviation board, overseeing all five of TUI’s airlines. Wilson is also a director of TUI UK. Originally from Cleethorpes, Wilson’s career in the industry began as cabin crew in the 80s, before rising up the ranks of Britannia Airways. Britannia’s parent company Thomson was acquired by TUI in 2000.
    TUI’s crisis measures: mass job losses, deportations, and more

    Before the pandemic TUI was a success story, drawing 23 million people a year to sun, sea, snow or sights. In 2019, TUI was riding high following the collapse of its key UK competitor, Thomas Cook. It branched out by adding 21 more aircraft to its fleet and picking up a number of its rival’s former contracts, notably in Turkey. TUI’s extensive work in Turkey has recently made it a target of the Boycott Turkey campaign in solidarity with the Kurdish people. The one bum note had been the grounding of its Boeing 737 MAX airliners, after two crashes involving the aircraft forced the worldwide withdrawal of these planes. Despite that, the company made close to €19 billion in revenues in 2019, and a profit of over €500 million. Most of that profit was handed straight to shareholders, with over €400 million in dividends. (See: Annual Report 2019). And the future looked good, with record bookings for 2020.

    Then came COVID-19. By the end of the 2020 financial year, travel closures had resulted in losses of €3 billion for TUI, and a net debt of €4.2bn. To stay afloat, the company has managed to pull in handouts from the German state, as well as backing from its largest shareholder, the Russian oligarch Alexei Mordashov. It has also turned to a number of controversial business practices: from mass job losses to becoming Brexit Britain’s main deportation profiteer.

    Here we look at some of what TUI got up to in the last year.
    Government bailouts

    Had it been left to the free market, TUI might well have gone bust. Fortunately for TUI’s investors, the German government rode to the rescue. In total, the state – working together with some banks and private investors – has provided TUI with €4.8bn in bailout funds to see it through COVID-19.

    The vast bulk of this money, €4.3 billion to date, has come from German taxpayers. TUI received a €1.8 rescue loan from state development bank KsF in April 2020, followed by another €1.2 billion package in August. The third bailout, agreed in December 2020, totalled €1.8 billion. €1.3 billion of this was more government money – from the German Economic Support Fund (WSF) as well as KsF.

    While some was a straight loan, portions came as a “silent participation” convertible into shares in the company – that is, the state has the option to become a major TUI shareholder. The deal also involved the government having two seats on TUI’s supervisory board. The German state is now intimately involved in TUI’s business.

    The other €500m was raised by issuing new shares to private investors. TUI’s largest owner, Alexey Mordashov, agreed to take any of these not bought by others – potentially increasing his stake in the company from 25% to as much as 36% (see below).
    Slashing jobs

    Alongside bail-outs, another key part of TUI’s response to the COVID crisis has been to hit the staff. Back in May 2020 there was widespread media coverage when TUI announced it would make 8,000 job cuts globally. Then in July 2020, the company announced it would close 166 of its 516 travel agencies in the UK and Ireland at a cost of 900 jobs.

    But these announcements turned out to be just the beginning. In the 2020 Annual Report, published in December 2020, TUI quietly announced that it had in fact cut 23,143 jobs – that is 32% of its total staff.

    Particularly hard hit were hotel staff, whose numbers fell by over 13,000, 46% of the total. The workforce of TUI’s excursions and activities division, TUI Musement, was cut in half with almost 5,000 job losses (Annual Report, p88). And these figures do not include staff for TUI Cruises (JV), a joint venture company whose employees are mainly hired through agencies on temporary contracts.

    Home Office deportation airline of choice

    TUI is not known to have been previously involved in deportations from the UK, Germany or any other country. But since August 2020, its UK subsidiary TUI Airways has suddenly become the UK’s top deportation airline. It carried out the vast majority of mass deportation charter flights from the UK between August and December 2020, and continues to do so in January 2021.

    This included many of the rush of pre-Brexit “Operation Sillath” deportations to European countries before the New Year – where the Home Office pushed to expel as many refugees as possible under the Dublin Regulation before it crashed out of this EU agreement. But it also works further afield: TUI carried out all charter deportations from the UK in November, including one to Ghana and Nigeria.

    Because of this, TUI looked a likely candidate to be operating the so-called ‘Jamaica 50’ flight on 2 December, and was one of a number of possible airlines targeted by a social media campaign. However, the company eventually clarified it would not be doing the flight – Privilege Style, whom Corporate Watch recently reported on, turned out to be the operator. It is unclear whether or not TUI had originally been booked and pulled out after succumbing to public pressure.
    No hospitality in the Canary Islands

    The company’s disregard for the lives of refugees is not limited to deportation deals. In the Canary Islands, a local mayor revealed that TUI (along with British airline Jet2) had warned hotels not to provide emergency shelter to migrants, threatening it would not ‘send tourists’ if they did.

    Record numbers of African migrants arrived on wooden boats to the islands in 2020, and some have been accomodated in the hotels at the state’s expense. Nearly 2,170 migrants died trying to reach Spain that year, the majority en-route to the Canaries. The islands had seen a dramatic fall in holidaymakers due to the pandemic, and many hotel rooms would have sat empty, making TUI’s threats all the more callous.
    Pushing back against Greek COVID-19 measures

    TUI has been pressing destination countries to reopen to tourists following the first wave of the Coronavirus pandemic. This has become a particular issue in Greece, now the company‘s number one destination where TUI has been accused of exerting pressure on the government to relax anti-COVID measures last Summer.

    According to a report in German newspaper BILD (see also report in English here), TUI threatened to cancel all its trips to the country unless the government dropped quarantine regulations for tourists. The threat was reportedly made in negotiations with the Greek tourism minister, who then rushed to call the Prime Minister, who backed down and rewrote the Government’s COVID-19 plans.

    Greece had been viewed as a rare success story of the pandemic, with the virus having largely been contained for months – until early August, a few weeks after it welcomed back tourists. Some have blamed the country’s “second wave” of COVID-19 infections on the government’s “gamble of opening up to tourists”.

    Leaving hotels in the lurch

    Despite having pushed destination countries to increase their COVID-19 exposure risks by encouraging tourism, the company then refused to pay hoteliers in Greece and Spain millions of euros owed to them for the summer season. Contractual changes introduced by TUI forced hotels to wait until March 2021 for three-quarters of the money owed. In Greece, where the company works with over 2,000 hotels, the sum owed is said to be around €50m, with individual hotels reportedly owed hundreds of thousands of euros. This money is essential to many businesses’ survival through the low season.

    TUI’s actions are perhaps all the more galling in light of the enormous government bailouts the company received. In the company’s 2020 Annual Report, amid sweeping redundancies and failure to pay hoteliers, CEO Fritz Joussen had the arrogance to claim that “TUI plays a stabilising role in Southern Europe, and in Northern Africa too, with investment, infrastructure and jobs.”
    Rolling in it: who gains

    The supposed rationale for government COVID bail-outs, in Germany as elsewhere, is to keep the economy turning and secure jobs. But that can’t mean much to the third of its work force TUI has sacked. If not the workers, who does benefit from Germany funneling cash into the holiday giant?

    TUI’s bailout deals with the German government forbade it from paying a dividend to shareholders in 2020. Although in previous years the company operated a very high dividend policy indeed: in 2018 it handed over €381 million, or 47% of its total profit, to its shareholders. They did even better in 2019, pocketing €423 million – or no less than 80% of company profits. They will no doubt be hoping that the money will roll in again once COVID-19 travel restrictions are lifted.

    Meanwhile, it appears that the crisis barely touched TUI’s executives and directors. According to the 2020 Annual Report (page 130), the company’s executives agreed to a “voluntary waiver of 30% of their fixed remuneration for the months of April and May 2020”. That is: just a portion of their salary, for just two months. This added up to a drop of just 5% in executive salaries over the year compared with 2019.

    Again: this was during a year where 32% of TUI staff were laid off, and the company lost over €3 billion.

    In a further great show of sacrifice, the Annual Report explains that “none of the members of the Executive Board has made use of their right to reimbursement of holiday trips which they are entitled to according to their service agreements.” TUI is infamous for granting its executives paid holidays “without any limitation as to type of holiday, category or price” as an executive perk (page 126).

    After his 5% pay cut, CEO Fritz Joussen still made €1,709,600 last year: a basic salary of €1.08 million, plus another €628,000 in “pension contributions and service costs” including a chauffeur driven car allowance.

    The next highest paid was none other than “labour director” Dr Elke Eller with €1.04 million. The other four members of the executive board all received over €800,000.

    The top dogs

    Who are these handsomely paid titans of the holiday industry? TUI’s CEO is Friedrich “Fritz” Joussen, based in Germany. Originally hired by TUI as a consultant, Joussen has a background in the German mobile phone industry and was head of Vodafone Germany. The slick CEO can regularly be found giving presentations about the TUI ‘ecosystem’ and the importance of digitisation. Besides his salary, Joussen also benefits from a considerable shareholding accrued through annual bonuses.

    Overseeing Joussen’s executive team is the Supervisory Board, chaired by the Walrus-moustachioed Dr. Dieter Zetsche, or ‘Dr. Z’, who made his fortune in the management of Daimler AG (the car giant that also owns Mercedes–Benz, and formerly, Chrysler ). Since leaving that company in 2019, Zetsche has reportedly been enjoying a Daimler pension package of at least €4,250 a day. TUI topped him up with a small fee of €389,500 for his board duties in 2020 (Annual Report p140).

    With his notable moustache, Dr. Z is a stand-out character in the mostly drab world of German corporate executives, known for fronting one of Daimler’s US ad campaigns in a “buffoon tycoon” character. At the height of the Refugee Summer of 2015, Dr. Dieter Zetsche abruptly interrupted his Frankfurt Motor Show speech on the future of the car industry to discuss the desperate situation facing Syrian refugees.

    He said at the time: “Anybody who knows the past isn’t allowed to turn refugees away. Anybody who sees the present can’t turn them away. Anybody who thinks about the future will not turn them away.” Five years later, with TUI the UK’s top deportation profiteer, this sentiment seems to have been forgotten.

    Another key figure on the Supervisory Board is Deputy Chair Peter Long. Long is a veteran of the travel industry, having been CEO of First Choice, which subsequently merged with TUI. He is credited with pioneering Turkey as an industry destination.

    Long is a controversial figure who has previously been accused of ‘overboarding’, i.e. sitting on the directors’ boards of too many companies. Described as a “serial part timer”, he was executive chairman of Countrywide PLC, the UK’s largest estate agency group, but stepped down in late November 2020 after apparently ruffling shareholders’ feathers over a move that would have given control of the company to a private equity firm. In 2018, Countrywide was forced to abandon attempts to give bosses – including himself – shares worth more than £20m. Long also previously stepped down as chairman of Royal Mail after similarly losing shareholder support over enormous executive pay packages. In his former role as as head of TUI Travel, he was among the UK’s top five highest earning CEOs, with a salary of £13.3 million for the year 2014 -15.

    The man with the money: Alexey Mordashov

    But all the above are paupers compared to TUI’s most powerful board member and top shareholder: Alexey Mordashov, a Russian oligarch who is reportedly the country’s fourth richest billionaire, with a fortune of over $23 billion. His family holding company is TUI’s main owner with up to 36% of company shares.

    Mordashov’s stake in TUI is held through a Cyprus-registered holding company called Unifirm.

    In 2019, Mordashov transferred 65% of his shares in Unifirm to KN-Holding, a Russian company owned jointly by his two sons, Kirill and Nikita, then aged 18 and 19. However, Russian media report that after the younger son Nikita was kicked out of university in 2020, he was sent to the army, and his shares transferred to Kirill.

    It may not be massive money to Mordashov, but his family company have certainly done well out of TUI. In 2019 TUI paid out €423 million in dividends to its shareholders, no less than 80% of total profits. At the time Unifirm owned one quarter (24.95%) of TUI. That means the Mordashovs will have received over €100 million on their investment in TUI just in that one year.

    “Steel king” Alexey Mordashov’s rise to the height of the global mega-rich began with a typical post-Soviet privatisation story. Born in 1965, the son of steel workers, he studied economics and accountancy and by 1992 was finance director of a steel plant in his hometown of Cherepovets. In the early and mid-1990s, the great Russian “Katastroika” sell-off of state assets saw steel mill and other workers handed shares in the former collective enterprises. In the midst of an economic collapse, workers sold on their shares to pay food and heating bills, while the likes of Mordashov built up massive asset portfolios quick and cheap. In the next privatisation phase, the budding oligarchs were handed whole industries through rigged auctions.

    Mordashov turned his steel plant holdings into a company called Severstal, now among the world’s largest steel firms. He then expanded Severstal into Severgroup, a conglomerate with holdings in everything from airports to goldmines (Nordgold) to supermarkets (Lenta), to mobile phone networks (Tele2 Russia), as well as the local hockey team Severstal Cherepovets. Vladimir Lukin, Mordashov’s legal adviser at Severgroup, is also a member of the TUI Supervisory Board.

    Business media paint Mordashov as less flamboyant than your average oligarch. His new megayacht Nord, built in Germany and registered in the Cayman Islands, is only 142 metres long – 20 metres shorter than Roman Abramovitch’s Eclipse.

    In December 2020, TUI declared that Unifirm owned 25% of its shares. But the number will have increased in TUI’s third bail-out deal in January: as well as more money from the German government and its banks, Unifirm agreed to inject more cash into the company in return for boosting its ownership, buying up new shares to a maximum of 36%. The exact current holding has not yet been announced.

    TUI’s increasing control by Mordashov was approved by the German financial regulator Bafin, which stepped in to exempt him from a rule that would have required Unifirm to bid for a full majority of the shares once it held more than 30%.
    Other shareholders

    Unifirm is the only shareholder with over 10% of TUI shares. Some way behind, Egyptian hotel-owning businessman called Hamed El Chiaty has a stake of just over 5%, via the Cyprus-based DH Deutsche Holdings. But most of TUI’s shares are owned in smaller chunks by the usual suspects: the global investment funds and banks that own the majority of the world’s assets.

    In December 2020 these funds each had over 1%: UK investor Standard Life Aberdeen; giant US-based fund Vanguard; Canada’s state pension system; and Norges Bank, which manages the oil-rich national wealth fund of Norway. Two other major investment funds, Pioneer and BlackRock, had around 0.5% each. (NB: these numbers may have changed after the new January share sale.)

    TUI can’t take its reputation for granted

    A company of TUI’s size backed by the German government and a Russian billionaire may seem impervious to criticism. On the other hand, unlike more specialist charter airlines, it is very much a public facing business, relying above all on the custom of North European families. The endless stream of negative reviews left by disgruntled customers following cancelled TUI holidays in 2020 have already tarnished its image.

    In a sign of just how worried the company may be about its reputation, it put out a tender in the autumn for a new PR agency to take care of “relaunching the brand into the post-Covid world”. This was ultimately awarded to the US firm Leo Burnett. If outrage at the UK’s deportation push keeps up, TUI might well need to pay attention to online campaigns or demonstrations at its travel agents.

    Another vulnerability the company has itself identified is political instability in destination countries, as evidenced by TUI’s nervousness over migrant arrivals in the Canary Islands. Here too, its image is being harmed by actions such as exerting pressure on the Greek government to relax COVID measures, and its treatment of independent hotels. TUI cannot take public support for granted in top destinations such as Greece and Spain, where campaigning at its resorts could play a role in shifting company policy.

    https://corporatewatch.org/the-two-sides-of-tui-crisis-hit-holiday-giant-turned-deportation-spe

    #renvois #expulsions #tourisme #TUI #asile #migrations #réfugiés #Allemagne #privatisation #complexe_militaro-industriel #business #UK #Angleterre #Touristik_Union_International #compagnie_aérienne #avions #Operation_Sillath #Alexey_Mordashov #Fritz_Joussen #Canaries #îles_Canaries #Preussag #Wigmore_House #Flintham #Andrew_Flintham #Andy_Flintham #Dawn_Wilson #pandémie #coronavirus #covid-19 #KsF #German_Economic_Support_Fund (#WSF) #chômage #licenciements #TUI_Musement #charter #Dublin #renvois_Dublin #Ghana #Nigeria #Jamaica_50 #Jet2 #hôtels #Elke_Eller #Dieter_Zetsche #Peter_Long #Severstal #Severgroup #Nordgold #Lenta #Tele2_Russia #Unifirm #Hamed_El_Chiaty #DH_Deutsche_Holdings #multinationales #Standard_Life_Aberdeen #Vanguard #Norges_Bank #Pioneer #BlackRock #Leo_Burnett

    ping @karine4 @isskein @reka

  • Optimisation de la production de #Tuiles_vectorielles de fond de carte OpenStreetMap pour un service à la demande : Makina Maps
    https://makina-corpus.com/blog/metier/2020/optimisation-de-la-production-de-tuiles-vectorielles-de-fond-de-carte

    L’expert OSM Frédéric Rodrigo de Makina Corpus met en place Makina Maps, une pile logicielle pour servir des tuiles vectorielles à la demande. L’approche se base sur l’optimisation d’OpenMapTiles et l’extension de Kartotherian.

    #Webmapping #Cartes #News_Item

  • #SIG : Préparation de données pour la création de #Tuiles_vectorielles
    https://makina-corpus.com/blog/metier/2019/preparation-de-donnees-pour-la-creation-de-tuiles-vectorielles

    Pour servir des données sous forme des tuiles vectorielles une préparation est nécessaire comme le filtrage et la simplification des géométries. Quelles sont les questions à se poser ? Quels sont les outils pour y répondre ?

    #MapBox_GL_JS #PostGIS #News_Item

  • Retour State of the Map France 2018
    https://makina-corpus.com/blog/societe/retour-state-of-the-map-france-2018

    L’équipe de Makina attendait avec impatience l’événement de l’année, State Of The Map 2018 à Pessac, et s’y est rendue en nombre pour rencontrer la communauté #OpenStreetMap et assister aux multiples conférences.

    #Cartographie #Open_source #PostGIS #OSRM #Webmapping #OSM #Tuiles_vectorielles #MapBox_GL_JS #News_Item

  • #Open_Street_Map en #tuiles vectorielles (#vectiles)
    http://osmlab.github.io/osm-qa-tiles

    on peut faire des calculs dessus en javascript :
    https://github.com/mapbox/tile-reduce

    par exemple :
    https://github.com/mapbox/osm-coverage

    ou plus simple encore :
    https://github.com/tcql/mlk-map

    (évidemment, comme il faut environ 20 minutes chez moi pour lire toutes les tuiles l’une après l’autre, ça ne fait pas une méthode efficace pour faire un moteur de recherche dans OSM : mais ça a le mérite de servir de #tutoriel très simple)

    Ca dépend de l’usage, mais ça permet d’avoir tout OSM chez soi dans un simple fichier #mbtiles de 18 Go, plutôt qu’un énorme machin à base de postgresql et tout. ping @kent1 @b_b

  • #AUB: A student uprising on the horizon?
    http://english.al-akhbar.com/content/aub-student-uprising-horizon

    Students hold a placard with “Down with the Doorman Regime” written in Arabic, as a reference to AUB President Peter Dorman during the March 11 protests. (Photo: Al-Alkhbar) Students hold a placard with “Down with the Doorman Regime” written in Arabic, as a reference to AUB President Peter Dorman during the March 11 protests. (Photo: Al-Alkhbar)

    Galvanized by the successful protest previously held on February 27, #American_University_of_Beirut (AUB) students held another rally on campus today to voice their rejection of proposed #tuition hikes, as well as a lack of financial transparency and other policies pursued by AUB’s administration. The protests – part of a series of acts leading up to March 21, when AUB’s Board of (...)

    #Lebanon #Articles #university