Media Releases

Flight Centre Limited Announces New Board Structure

Apr 8, 2005

Flight Centre Limited chairman Norman Fussell today announced his intention to retire from his Board position at the end of the current fiscal year.

Mr Fussell will stand down on his 10th anniversary as chairman of the company’s Board of Directors, with Flight Centre Limited managing director Graham “Skroo” Turner to become executive chairman on July 1, 2005.

“I feel this anniversary represents the ideal opportunity for me to lighten my corporate workload and to devote more time to my other interests,” Mr Fussell said.

“It has been incredibly interesting to chair a company that has grown at more than 20 per cent since its float and to have direct input into the people, marketing and expansion issues associated with a growth rate of this magnitude. I am privileged to have worked with such a committed and talented group of people.

“I have no doubt that Skroo will lead this company to another decade of great achievement.

“He is a proven leader and strategist, with an amazing record of success. He has the skills and the vision to lead this company forward as chairman.”

Mr Turner said Mr Fussell had successfully guided Flight Centre Limited through a period of rapid global expansion. During his 10 years as chairman, the company has increased shop numbers from less than 250 to more than 1200 and won a string of awards, including the title of Australia’s Best Employer twice.

“Norm has made a magnificent contribution,” Mr Turner said. “We thank him for his hard work and dedication over the past 10 years and wish him all the best for the future.

“Norm has been a visionary chairman and has provided direction and stability. He has diligently served the best interests of shareholders and given generously of his time.”

In addition to his role of executive chairman, Mr Turner will be responsible for the company’s global corporate travel management network, FCm Travel Solutions. Chief executive officer Shane Flynn will be responsible for day-to-day operations in the company’s global retail, product and shared services area.

“FCm Travel Solutions, our main corporate brand, has significant growth potential internationally, while the Flight Centre leisure brand and the associated shared services continue to expand rapidly,” Mr Turner said.

“This new structure will allow Shane and myself to really focus on these two significantly different but crucial business areas as they enter the next exciting phases in their global development. We will be better placed to identify opportunities for improvement, which will make the company stronger overall.”

Flight Centre Limited’s Board currently includes:

  • Norman Fussell – non executive chairman
  • Graham Turner – managing director (executive)
  • Shane Flynn – executive director and chief executive officer
  • Peter Barrow – non executive director
  • Howard Stack – non executive director

Upon Mr Fussell’s retirement, Flight Centre Limited intends to expand its Board. Two independent, non-executive directors will join the Board in due course.

Mr Flynn said the company would release its third quarter results on April 28, 2005. He said the fourth quarter was traditionally the company’s busiest trading period.

“We reaffirm that our full year guidance is a flat profit result in line with 2003/04, as announced previously,” he said.

Flight Centre Limited Expands FCm Travel

Feb 16, 2005

Solutions Network with Key Indian Acquisition

Flight Centre Limited has agreed to acquire a majority stake in India’s largest nationally owned corporate travel business.

The company today secured another key link in the development of its global FCm Travel Solutions corporate travel management network with the acquisition of a majority holding in Friends Globe Travels Ltd (FGTL).

The acquisition gives FCm Travel Solutions a strong network in the key Asia-Pacific region. This network now covers the corporate travel hubs of Australia, New Zealand, Hong Kong, India, China (joint venture) and Singapore (licensing agreement).

Further expansion is planned, as the company proactively pursues strategic acquisition, joint venture and licensing opportunities in key global corporate travel markets.

Flight Centre Limited managing director Graham Turner said the acquisition would give Flight Centre Limited and FCm Travel Solutions:

  • A profitable business with growth potential, strong customer relationships and a customer list dominated by leading global corporations
  • A significant presence in a key corporate travel market
  • Opportunity to secure new global and regional business travel accounts
  • Increased ability to service existing clients with interests in India and in Asia.

“Friends Globe Travels is a successful business headed by a strong management team with an excellent understanding of the local, regional and global corporate markets,” he said.

“The business has strong internal systems, particularly in cash management and client relationship management, a replicable model and a reputation for quality and service.

“The addition of FGTL will deliver tangible benefits to FCm Travel Solutions’ clients.”

Deal Structure

Flight Centre Limited will initially acquire 51% of FGTL. Agreements are in place for Flight Centre Limited to acquire the remaining 49% from managing director Rahul Nath at a price that will be determined according to the business’s performance over the next five years. Mr Nath and his leadership team will continue to run the business in India.

The purchase of the initial 51% is likely to be completed in April 2005, subject to several conditions, including Flight Centre Limited obtaining foreign investment approval from the Indian government and the consent of FGTL’s financiers to the acquisition.

The deal will be earnings per share positive and will be funded from cash reserves. Subject to final audited EBITDA, Flight Centre Limited will invest about $8.3 million for the initial 51%. Future payments depend on growth in FGTL’s EBITDA over five years.

Friends Globe Travels is expected to generate total transaction value of $107 million and EBITDA of about $3.2 million for the Indian fiscal year ending March 31, 2005.

FCm Travel Solutions global executive general manager Anthony Grigson said the acquisition represented another important step in the brand’s development as a superior global force in strategic corporate travel management.

“India is an increasingly attractive foreign investment location with numerous multinational corporations moving into the region,” he said.

“There are real opportunities to build on FGTL’s record of success because the business will now share the benefits of FCm Travel Solutions’ strong international network, brand name and advanced operational solutions. There are powerful mutual benefits.”

About FCm Travel Solutions: FCm Travel Solutions is the first Asia-Pacific based global travel management network. The brand was created by Flight Centre Limited and has grown internationally through strategic acquisitions, joint ventures and licensing agreements.

About Friends Globe Travels Ltd: FGTL was formed in 1987 and currently has branches in Delhi, Chennai, Mumbai, Gurgaon, Hyderabad and Bangalore. The business will this month expand into Kolkata, Ahmedabad, Pune and Baroda. Management plans to operate from 20 locations by the end of 2006.

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