Flight Centre takes full ownership of Canadian corporate travel and leisure business
Written on the 5 August 2019 by Matt Ogg
Just over a month after taking over Paris-based corporate travel group 3Mundi, Flight Centre (ASX: FLT) is boosting its exposure to another French-speaking market.
The Brisbane-headquartered company now has 100 per cent ownership of North American premium leisure and corporate travel business Les Voyages Laurier du Vallon (LDV).
Flight Centre had secured a 75 per cent interest in the Quebec-based group in August 2017, and has recently executed its option to acquire the remaining share.
FLT's managing director Graham Turner says LDV has become an important part of the company's Americas business during the past two years, contributing to strong growth in the region.
"LDV has proven to be a valuable addition to our network in the Americas and we are pleased to take 100% ownership of the business," he says.
"In addition to delivering solid earnings growth over the past two years, its corporate travel presence has enhanced our already strong customer offering across Canada and throughout North America in general.
"In leisure travel, LDV's premium offering, which is similar to the highly successful Travel Associates model we use in some other countries, has complemented the Flight Centre branded offering in Canada and allowed us to target a broader customer base in this fairly large market."
FLT will release its 2019 fiscal year (FY19) accounts on August 22 and has already flagged a record profit contribution from its North American business.
In April, the company said its Americas businesses, which together generated a AUD$70.2million profit before tax during FY18, were closing in on a profit in excess of AUD$100million for FY19.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg