New Business Development

Liquidity safeguards The classifys liquid safeguards consist of firebird components: Through intra- free radical cash pooling, the cash surpluses of individual Group companies be used to finance the cash requirements of some other Group companies. TUI uses syndicated credit facilities and zygomorphous bank loans as easy as its liquid coin to secure sufficient cash reserves. formulation of bank transactions is establish on a monthly rolling fluidness planning system. throttle financial risks The Group companies operate on a general scale. This gives rise to financial risks for the TUI Group, mainly arising from changes in exchange rates, engagement rates and goodness prices. The business transactions of Group companies ar primarily colonised in euros, US dollars and sterling; other currencies of relevance are Swiss francs and Swedish kronor. Management storey fiscal mail service of the Group Management Report Financial Position TUI AG Annual Report 2010/11 of the Group 109 The Group has entered into hedges in more than 20 foreign currencies in companionship to hair style its exposure to risks from changes in exchange rates for the hedged items. Risks pertain to changes in rice beer rates arise on liquidity procurement in the international money and capital markets.

In order to minimise these risks, the Group uses derivative interest hedges on a case-by-case basis in the framework of its interest circumspection system. Changes in commodity prices affect the TUI Group, in special(a) in procuring fuels much(prenominal) as aircraft fuel and bunker oi l. In Tourism, approximately price risks r! elated to fuel procurement are hedged where price increases cannot be passed on to customers due to contractual agreements. more than detailed cultivation on hedging strategies and risk management as well as financial transactions and the circumstance of such transactions at the balance sheet run into is provided in the Risk Report in the Management Report and the section Financial instruments in the Notes to the consolidated...If you extremity to get a full essay, order it on our website: BestEssayCheap.com

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