ACQUISITIONS PUT THE WIND BACK UNDER FLIGHT CENTRE'S WINGS
Written on the 19 December 2016 by Business News Australia
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.
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Author: Business News Australia