2002

Flight Centre Limited acquires Hong Kong corporate travel business

Friday, 23 August 2002

Flight Centre Limited has today (August 23) announced the acquisition of Hong Kong-based corporate travel business American International Travel Limited (AIT). The acquisition price of the privately-owned AIT is undisclosed. Flight Centre Limited chairman Norman Fussell said the acquisition of AIT further boosted Flight Centre Limited's position in the fast-growing corporate travel market and followed the group's purchase earlier this year of ITG. He said Flight Centre Limited had been searching for a suitable corporate travel acquisition in eastern Asia for the past 12 months. "The acquisition of AIT is designed to meet the eastern Asian travel needs of Australian and New Zealand clients of Flight Centre Limited's corporate division," he said. "We can now offer a streamlined fulfilment of all corporate travel needs for clients in the eastern Asia region. Hong Kong is also a major travel route into China and Europe and having a presence there enables us to provide a complete travel solution for corporate clients." The acquisition of AIT means Flight Centre Limited's corporate division has 100% owned businesses in Australia, New Zealand and Hong Kong, positioning it as a significant player in the Australasian corporate travel market. AIT currently holds approximately five% of the Hong Kong corporate travel market and has an annual turnover of HK$280 million. The company, which has 65 staff, offers a complete corporate travel consultancy service, including visa documentation and a limousine transfer business operating from the Hong Kong airport. Flight Centre Limited managing director Graham Turner said AIT was a strategic acquisition that significantly bolstered the services offered by the group's corporate division. He said there were many synergies between the organisational structure of AIT and Flight Centre Limited. "AIT fits perfectly with our group philosophy of a team-based structure and low overheads," he said. "The company also has an experienced management team and strong repeat business, which provides a solid platform for future growth." AIT managing director and owner Joseph Kao, who has been with the company for 36 of its 39-year history, will remain as managing director of AIT. Flight Centre Limited corporate division general manager Daniel O'Brien said corporate travel clients were increasingly looking for a complete service for all of their travel needs. He said the acquisition of AIT would add substantial value to the service levels and products offered to clients of Flight Centre Limited's corporate division. "A lot of our existing corporate clients in Australia and New Zealand travel extensively in eastern Asia," he said. "They have been requesting that we increase our presence there and offer a comprehensive eastern Asian travel solution."