2002

Sustained growth prompts Flight Centre Limited to expand leadership structure

Monday, 22 July 2002

The sustained growth that has seen Flight Centre Limited become one of the more successful businesses of its kind has prompted the company’s Board to appoint the current chief executive officer, Graham Turner, to a more strategic role. Flight Centre Limited chairman Norman Fussell today announced that Mr Turner would focus on his role as managing director in the future, a move that would enable him to concentrate on the company’s longer-term strategies and its new and emerging markets and brands. Mr Fussell also announced that the company’s managing director in South Africa, Shane Flynn, would return to Australia to become Flight Centre Limited’s chief executive officer, a position that would see him reporting to Mr Turner and overseeing all major operational areas. Mr Fussell said the move was a natural progression and a necessary organisation structural realignment, given Flight Centre Limited’s current size and sustained growth record. He said Mr Flynn, 42, would assume his new position immediately. "In the 21 years since the first Flight Centre store opened, the company has become one of the largest businesses of its kind in the world," Mr Fussell said. "We have now grown to the point where we have 4000 employees and almost 1000 stores and businesses in Australia, New Zealand, the United Kingdom, Canada, South Africa and the United States. "As a company, we aim to continue this growth and we see this move as a very positive step, with the managing director effectively concentrating on the longer term future and the chief executive officer concentrating on the success and growth of the company over the next few years. Mr Fussell said the chief executive officer would oversee Australian and international operations including the company’s chief financial officer and the leaders of its Peopleworks (human resources), Product and Corporate businesses. He said the managing director’s primary role would be longer-term profit generation, with Mr Turner overseeing acquisitions and the company’s information technology, supply businesses, global marketing and global branding. The managing director would also be responsible for Flight Centre Limited’s future growth divisions Youth, Holiday and ITG. Mr Turner said the company, which last month announced that its pre tax profit for the year to June 30, 2002 was expected to be about 30% higher than the previous year, had built a solid base for future growth and success. "Shane has a long and proven track record with Flight Centre Limited and has enjoyed great success as a leader in South Africa during the past seven years," Mr Turner said. "We believe he can now bring a great deal to the company at a global level." Mr Flynn, who this month celebrated 15 years with Flight Centre Limited, joined the company in July 1987 in its travel operations in Brisbane. He later launched the company’s business travel division, Corporate Traveller, in Queensland, before moving to South Africa in 1995 to become the company’s managing director in the Republic. During his seven years in South Africa, Mr Flynn expanded the operation from one to seventy-five stores and businesses and saw it achieve an eight% market share in the country through the Flight Centre, Corporate Traveller, Groups, Student Flights and Infinity brands. "Flight Centre Limited has an outstanding growth and profit record and I look forward to playing a key role in the future as chief executive officer," Mr Flynn said. "I will be working closely with the company’s senior executives in Australia and overseas to ensure we continue our success."