Kuala Lumpur - PST Travel Services and KHT Tours, both subsidiaries of British American Tobacco, have merged, with the combined entity taking on the name of PST Travel Services.

The bigger company, with around 50 staff, is led by KHT’s general manager, Ms Selina Chuah, who retains the same title.

Formerly known as Peter Stuyvesant Travel Services and Kent Horizon Tours, both companies were forced to change their names last year when the Malaysian government cracked down on the use of tobacco brands offering non-tobacco related products and services.

Ms Chuah said: “PST has a strong corporate and a tour base, while we have a strong corporate base, and we will continue to focus on both areas.”

An industry source said: “It makes sense as both companies have their own distinct corporate clientele base and there is no clash of interest.”

Sources said Ms Chuah was appointed as general manager for the merged agency, even though PST generated the bigger turnover, because she was more senior than PST’s general manager, Mr John Tan, at the time of the announcement.

This future scenario had led Mr Tan to voluntarily leave PST in June. His departure was preceded by that of 23 staff who opted for and were accepted for a voluntary separation scheme offered to all staff. This included three managers in the corporate travel department, PST’s main strength. It was ranked by Abacus Malaysia as among its 20 top-booking performers for 2002 and 2003.

Industry sources said the merged agency would be able to come back strongly despite PST’s corporate travel strength being weakened with the departure of its corporate travel managers. But to pose a threat, one source said it needed an affiliation to a global network.

Ms Chuah said: “We are keen and are looking out for such opportunities.”