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* TUI seeks to strengthen fragmented airline operations
* Sources say will use Thomson Airways as base
* Sources say 400-500 jobs could go at TUIfly base inHanover (Adds quotes, detail on airline operations, Corsair sale talks)
FRANKFURT, Feb 3 (Reuters) - Plans by travel and tourismcompany TUI Group to shake up its airline operationsare likely to lead to hundreds of job losses in Hanover,Germany, three sources familiar with the matter told Reuters.
TUI Group, the world's largest leisure and tourism companywas formed from the merger of London-listed TUI Travel andmajority owner TUI AG last year.
TUI plans to better coordinate its fragmented airlineoperations, including TUIfly, Jetairfly and Thomson Airways, inthe light of competition from the likes of easyJet,Ryanair, Norwegian and Vueling.
As part of the shake-up, the group is planning to use theplatform of UK-based Thomson Airways as the base for thecombined airline operations, with administration and some of themaintenance activities to be in Britain, the three sources said.
The efforts to save more than 100 million euros ($114million) mean around 400-500 jobs out of more than 2,000 jobscould be lost at TUIfly's base in Hanover and could drawmeasures such as strikes or legal action from unions, they said.
"It makes sense to draw synergies from combining activitiessuch as fuel purchasing, aircraft leasing and administration of TUIfly Germany, Thomson Airways, TUIfly Nordic, Jetairfly andArkefly," one of the sources said. "But why use the platformwith the highest cost base?"
Another said the figure of 100 million euros in synergieswas too high and unlikely to be achieved.
A third person said Britain was chosen as the hub for theairline deal as compensation for TUI Travel losing someactivities to TUI Group's Hanover headquarters as part of themerger of TUI AG and TUI Travel.
A decision is expected by Easter, the source added.
A spokesman for TUI said it was looking at various businessmodels to strengthen the airline operations under the leadershipof CEO Henrik Homann, but that no decision had yet been takenand could be some time off.
TUI's Corsair, the French airline which mainly servescustomers flying to French overseas territories, is not includedin the plans to bundle the airlines together. Instead, TUI is indiscussions with parties interested in buying the airline,although nothing has been decided, the spokesman said.
($1 = 0.8750 euros) (Reporting by Arno Schuetze, Peter Maushagen, Victoria Bryanand Sarah Young; Editing by Kirsti Knolle and Mark Potter)
