Singapore and Hong Kong - Australia-based Flight Centre has strengthened its corporate travel arm FCm Travel Solutions' foothold in Asia following two newly formed partnerships in Singapore and India.
FCm is also in various stages of negotiations with companies in five other Asian countries including Japan, Korea, Thailand, Philippines, Thailand and Malaysia.
Late last year, the company appointed UOB Travel Planners, in Singapore, as its first international licensee. In April, it will acquire a 51 per cent stake worth US$6.5 million, in India's largest nationally owned corporate travel business, Friends Globe Travels, with the intention to buy the remainder of the company at a price that will be determined by its performance over the next five years.
Flight Centre managing director, Mr Graham Turner, said: "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.
"The business has strong internal systems, particularly in cash management and client relationship management, a replicable model and a reputation for quality and service."
FCm Travel Solutions global general manager, Mr Anthony Grigson, said the agreement with UOB was a significant step in the brand's international development. "With UOB joining our network, we now have a strong and growing presence in the key Asian markets of China, Hong Kong and Singapore," he said.
Hong Kong-based American International Travel was rebranded FCm Travel Solutions last year, more than two years after it was acquired by Flight Centre. Last April also saw FCm entering into the China market with a joint venture with China Comfort. Now there is also India.
Mr Grigson said: "These companies we've been talking to align well with our existing portfolio...the way the industry is polarising makes sense for these businesses to come on board. What they get is proven results from a successful Australian company that has aggressive growth plans, an established corporate network and significant bargaining power with suppliers."
