Workers at a tour operator face uncertainty after details of a planned merger were announced today.

Thomas Cook Holidays and British Airways Holidays, are to merge - subject to European Commission approval.

If the go ahead is given. the new business will become fully operational next spring.

BA Holidays employs 480 staff at Crawley in West Sussex - Thomas Cook has 350 employees at its base in Peterborough in Cambridgeshire.

Under the proposals, both companies will keep their brand names and the new company will be owned 50-50 by Thomas Cook and BA.

Spokeswomen for both companies said it was too early to say if there would be any job losses from the merger.

Both companies offer upmarket holidays on scheduled airlines, with Thomas Cook's long-haul strength being in the USA, Canada and Egypt, while BA is strong in the Caribbean, Florida and the Far East.

Simon Laxton, currently managing director of Thomas Cook Holidays, will be responsible for merging the two operations into a single management team.

He said today: "Together, Thomas Cook Holidays and British Airways Holidays will be able to offer UK travellers an unrivalled range of choice. We aim to make excellent customer service our hallmark."