German airline TUIfly says no plans to link up with UK's easyJet

(Recasts with reaction from TUIfly)

BERLIN, Sept 23 (Reuters) - TUIfly has denied suggestions that the German airline is planning to link up with Britain's easyJet but declined to comment directly on a report that another European airline was interested in buying the airline.

A German magazine report said on Thursday that easyJet was close to taking a stake in TUIfly, part of travel and tourism group TUI (LSE: 0NLA.L - news) , as a way to secure flying rights within the European Union should Britain leave the EU and not agree access to the bloc's single aviation market.

But a TUIFly board member representing the labour force said on Friday a second European carrier could be interested in buying the airline, part of travel and tourism group TUI .

"There's another European airline to whom TUIfly could be sold," Martin Locher, a TUIfly pilot and supervisory board member told Reuters on Friday.

He declined to name the airline, but said it was a non-EU carrier. He also said it was not clear if talks with easyJet were continuing.

In response TUIfly management said in a letter to employees, "A partnership or easyJet taking a stake in TUIfly is not being prepared, nor is this planned".

EasyJet (Other OTC: EJTTF - news) declined to comment while a TUI spokesman declined to comment directly on the second European airline.

TUIfly has 41 planes, 14 of which are currently operated by loss-making Air Berlin (LSE: 0GPE.L - news) . Sources have told Reuters that Lufthansa and Air Berlin are in talks over Lufthansa renting around 40 Air Berlin planes and crews for use by its Eurowings subsidiary, with a decision expected next week.

"Given the difficult financial situation at Air Berlin, we are regularly in contact with Air Berlin, plus with other airlines and partners and exploring opportunities for cooperation," TUIfly added.

Both Locher and Andreas Barczewski, a member of the TUI Group and TUIfly supervisory boards, said any sale of TUIfly against the wishes of employees and unions would be resisted.

Management at TUI is reshaping the travel group, which was created in 2014 by the merger of London-listed TUI Travel (Other OTC: TTVLF - news) and German majority owner TUI AG and is focusing on its tour operations, hotels and cruises.

Along with TUIfly, the TUI Group also includes airlines Thomson Airways, TUIfly Nordic, ArkeFly and JetairFly. TUI has said it is targeting 50 million euros ($56 million) in operational improvements at its airlines by the 2018/19 financial year.

Chief Executive Fritz Joussen said in August TUI was seeing pressure at the German airline due to overcapacity in the market.

($1 = 0.8914 euros) (Reporting by Peter Maushagen; Additional reporting by Victoria Bryan, Arno Schuetze and Sarah Young; editing by Susan Thomas, Greg Mahlich)