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Flight Centre expands in Europe with a new purchase

Flight Centre's global domination plans continue, with the company's acquisition of a small privately-owned, Netherlands-based corporate travel agency.

Flight Centre’s global domination plans continue, with the company’s acquisition of a small privately-owned, Netherlands-based corporate travel agency.

The purchase of Business Travel Development (BTD) was announced this morning and is the Group’s first set up in Europe outside of the UK and Ireland.

Flight Centre’s UK boss, Chris Galanty, will oversee operations of BTD, which earned around EU10.3 million during its 2015 financial year.

Group Managing Director, Graham Turner, described the purchase as a cost-effective and low risk entry into the market and expects it will strengthen Flight Centre’s “proposition for national and multi-national clients”.

Graham Turner Flight Centre

“BTD is a profitable business that we know well and that operates in one of the world’s largest corporate travel markets.”

Graham Turner, Flight Centre Group Managing Director

“[It] gives us a platform for further growth in the country and in Europe more broadly.”

He continued, saying that the purchase could lead to the launch of a dedicated SME offering, to complement the FCM business and possibly a leisure travel offering.

BTD is the Group’s third new acquisition this fiscal year, following corporate buy outs in Mexico (July) and Malaysia (November).

Meanwhile, Flight Centre will meet the Australian Competition Consumer Commission (ACCC) in High Court this year, to resolve a price-fixing accusation.

The ACCC was granted leave to appeal the Federal Court’s decision to overturn a breach in trading practises ruling handed down in 2013.

Turner said he was disappointed by the watchdog’s decision to continue the “long-running test case, following the clear and unanimous judgement in Flight Centre’s favour”.

What are your thoughts on Flight Centre’s expansion in Europe?