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Business briefing: Shares in Tui take off after rival Thomas Cook crashes

Flying high: A Tui Airways plane

SHARES in Tui, Ryanair and easyJet soared yesterday following the collapse of Thomas Cook.

Tui saw stock rise 7.1 per cent as it is expected to fill the gap left by its rival. Analysts at Bernstein said it was a ‘far more resilient business’ than Thomas Cook thanks to stable cash flows from its cruise and hotels arm.

Low-cost flier easyJet also saw gains, up 4.6 per cent, while shares in Dublin-listed Ryanair rose nearly one per cent.

Online travel firm On the Beach — which sells Thomas Cook holidays — revealed it is among those affected by the company’s collapse.

It warned over a hit from costs involved in organising alternative travel arrangements for those currently in resorts and lost profits on cancelled bookings.

The group is also assessing the possible impact on the next financial year and will give a further update. But it hopes to be able to recover the costs of cancelled flights through a ‘chargeback claim’, which it said was used after the demise of Monarch in 2017.

The Share Centre analyst Helal Miah said of Thomas Cook’s collapse: ‘Being one of the largest travel groups, its disappearance will mean a large player’s future customer base will now move over to its rivals.’

Burger van gives former inmates a second bite

Hungry striker: Ex-Chelsea star Tore Andre Flo at the burger van made from a prison truck

FORMER Chelsea striker Tore Andre Flo is backing a burger van made from an old prison truck that creates jobs for ex-offenders.

He was at Brixton prison to help launch Jack Winter’s Leg Up Legacy, named in honour of a 19-year-old Blues fan who died of cancer last year.

The Food Cell van, which has been converted with £60,000 of donations from Jack’s friends and family, will give former inmates vital work experience.

It is being run with social justice charity Key4Life, whose YOUNITED campaign encourages employers to give ex-cons an opportunity.

Flo, who played 100 games for Chelsea between 1997 and 2000 and is now the club’s loan player technical coach, said: ‘Jack was a fighter and I’m calling on more employers to fly the YOUNITED flag above their businesses and give a second chance to those who want to take their first steps back on to the job ladder.

‘Many ex-offenders have great skills and knowledge, all they need is the opportunity to prove it again.’

Key4Life founder Eva Hamilton MBE said: ‘We need employers to get on board if we are going to make a real difference.’

Wages stagnate as mid-tier roles vanish

WAGES are flatlining because firms are scrapping mid-tier roles and replacing them with new technology and cheap offshore labour, a report says.

New technology is making jobs such as paralegal work and administration redundant, leaving better qualified professionals in lower skilled roles, said recruitment specialist Hays.

This forces those who would have done those jobs into underemployment — where they have jobs but do not work as many hours as they would like — leading to a ’skills mismatch’ and lower wages overall.

BUSINESS BITES

■ MIKE ASHLEY’S Sports Direct has made a £3.8million takeover bid for troubled Goals Soccer Centres ahead of the five-a-side football pitch firm’s shares delisting next week. It already holds an 18.9 per cent stake.

■ SONY’S PS4 successor will use less energy while on standby. The PS4 uses 8.5W in rest mode but Sony says its new hardware could consume as little as 0.5W. Users will have to switch the option on.

■ BURGER King UK chairman Martin Robinson has been named new head of the board at Scottish brewer and bar operator Innis & Gunn. Founder Dougal Gunn Sharp said it will help the ‘explosive growth’ of its lager.

■ BANKS have cut the number of branches by 34 per cent in five years, says Which? The tally fell from 9,803 in January 2015 to 6,549 in August, with only 49 branches opened during that time.

■ PROPERTY giant CBRE has been given the green light for its £267million takeover of housebuilder Telford Homes by the European Commission. Telford will remain a standalone business and job cuts aren’t expected.