Minister of Tourism Ramon Alfredo Bordas explained to Hoy newspaper the reshuffling that occurred in Germany and England that led to the discontinuation of the Puerto Plata flights of Britannia Airways (owned by Thomson of England) and the discontinuation of the low cost packages of FTI, a German wholesaler. He said that LTU airline will now service tourists that FTI may book for the DR and who previously flew in on Britannia Airways. Recently ARA Hotels announced the closing of several small hotels in Sosua citing the unilateral cancellation of FTI bookings. Minister Bordas explained to Hoy newspaper what happened. He said that Britannia offered lower prices than German charter flight competitors LTU, Condor and Hapag Lloyd. The airline specialized in serving tour operators that offered long haul and budget packages, such as FTI. "This wholesaler focused on the DR and promoted the country in a way that was effective in the short run but harmful in the long run to the interests of the DR and even their own interests," explained Bordas. He said the airline cheapened the average holiday package by more than 20%. Bordas said the company even offered packages that ranged from US$350 for a two-week stay. He explained that Airtours of England purchased a significant part of FTI but the German wholesaler continued to operate independently, booking large numbers of vacationers at a loss. When this practice became known, it affected Airtours’ shares on the market. This led the central office of Airtours in England to remove Mr. Gunz, the founder and chief executive of FTI, and assume the operations. The new management cut the programs to the DR due to the losses sustained by the below-cost prices the company used to attract large numbers of passengers. (23 April 2001)
