ACQUISITIONS PUT THE WIND BACK UNDER FLIGHT CENTRE'S WINGS

ACQUISITIONS PUT THE WIND BACK UNDER FLIGHT CENTRE'S WINGS

FLIGHT Centre (ASX: FLT) has completed a string of corporate travel acquisitions across Europe, a move which is expected to generate a further 110 million turnover for the company during FY17.

The travel agent finalised the buyout of several businesses throughout Germany, Sweden, Finland, Norway and Denmark for an undisclosed sum.

Flight Centre initially announced its agreement to buy the businesses earlier this year in September, with managing director Graham Turner remaining optimistic about fresh impact on the global stage.

"The European corporate acquisitions will strengthen our global offering in a sector that now generates about one third of the company's total sales," says Turner.

"In addition to acquiring these profitable businesses, we also have the opportunity to introduce new revenue streams including the SME-focused Corporate Traveller brand to operate alongside our FCM brand, which focuses on larger accounts."

During the 2016 fiscal year Flight Centre's corporate turnover exceeded $6 billion, with Turner adamant that prospects also remain strong for the future.

The acquisition announcement heralds a positive turn for Flight Centre, following last week's High Court ruling which condemned the company for price fixing arrangements it made between 2005 and 2009.

It ruled that Flight Centre attempted to induce Singapore Airlines, Malaysian Airlines and Emirates to enter price fixing arrangements, ones which prevented those airlines from offering cheaper flights directly to consumers.

In the successful appeal made by the Australian Competition and Consumer Commission (ACCC), the High Court overturned the original Federal Court decision.

Want to read more about Flight Centre?

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

Apollo to divest large share of motorhome fleet to get Tourism Holdings merger over the line

In an effort to appease Australian and New Zealand regulator concer...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...

QLD to launch Star Entertainment review in July as former judge appointed to probe casino operator

QLD to launch Star Entertainment review in July as former judge appointed to probe casino operator

Casino operations that account for more than half of The Star Enter...

Collection House calls in administrators: Was Volt collapse the spark?

Collection House calls in administrators: Was Volt collapse the spark?

A recapitalisation plan has failed to save debt collector Collectio...