Media Releases

Flight Centre Limited Completes US Acquisition

Mar 31, 2006

Flight Centre Limited has acquired a Chicago-based corporate travel management business to enhance its global FCm Travel Solutions network.

The company has almost doubled its corporate travel presence in North America by acquiring Bannockburn Travel Management (BTM), a profitable business with a healthy growth record.

BTM was launched in 1987 and generated $US93million in total transaction value in 2005. The business employs 80 people in Chicago and in its Arizona reservation centre.

Flight Centre Limited managing director Graham Turner said BTM would operate alongside the FCm network’s profitable operations in Canada, Chicago and Los Angeles.

“BTM is a growing business with strong leadership, headed by Joe Mazza Sr, who has a personal commitment to customer service,” he said. “Importantly, the business’s base values are consistent with those of FCm Travel Solutions.

“This acquisition means the network will have a solid presence in Los Angeles and Chicago and a footprint for future expansion in other key United States locations.”

FCm Travel Solutions global executive general manager Anthony Grigson said the company would investigate other strategic acquisition opportunities in the United States as it continued to expand the FCm Travel Solutions network.

“We continue to seek the right opportunity on the East Coast in particular,” he said.

“Future acquisitions will complement the successful organic growth strategy that is already in place in our established FCm Travel Solutions businesses in North America.”

The BTM deal includes an upfront payment and further consideration that is payable if the business achieves prescribed growth-related targets in the future.

Flight Centre Limited’s total investment is expected to be in the vicinity of $AUD13million.

As part of the deal, Mr Mazza has agreed to run the business for at least three years. Mr Mazza founded BTM and has been instrumental to its success over the past 19 years.

The acquisition is Flight Centre Limited’s 11th in the corporate travel sector and its first in the United States.

The company has previously acquired corporate businesses in Australia and New Zealand, the United Kingdom, Hong Kong, China (joint venture) and India.

About FCm Travel Solutions: FCm Travel Solutions is the first Asia-Pacific based, global corporate travel and expense management specialist, delivering personalized solutions to companies of all sizes around the world. The network services some of the world’s best-known companies and delivers measurable savings through its worldwide network of local expertise, state-of-the-art technologies, a flexible approach to service and the continuous development of its 3000 people. Visit www.fcmtravel.com for further information.

Flight Centre Limited Board Appoints New Chairman

Mar 30, 2006

Flight Centre Limited has amended its Board structure.

The change will see Bruce Brown become non-executive chairman and Flight Centre Limited founder Graham Turner focus on his preferred role as managing director.

Mr Brown was previously a non-executive director, while Mr Turner was executive chairman and performed the dual functions of leading the company’s Board and overseeing Flight Centre Limited’s daily operations.

Mr Turner said separating the roles of chairman and managing director would deliver a more effective overall management structure and was in line with corporate governance recommendations.

“Bruce has the skills required to take the company forward as chairman,” Mr Turner said.

“He has a wealth of experience as a public company CEO, proven leadership skills and a record of success, having transformed Campbell Brothers into a diverse, multinational operation during his time with the company.”

Mr Turner became executive chairman after Norman Fussell retired in July.

Mr Brown, 61, joined Flight Centre Limited’s Board in December 2005 after retiring as chief executive officer and managing director of Campbell Brothers Limited. He is a nonexecutive director of Campbell Brothers Limited, Transpacific Industries Group Ltd and Phi Capital Limited.

“Chairing a company of Flight Centre Limited’s size and diversity is a challenge but also represents an exciting opportunity,” Mr Brown said.

“The company continues to generate healthy sales growth, has a strong balance sheet and operates one of Australia’s most valuable brands in the Flight Centre leisure travel brand. In addition, Flight Centre Limited has developed comprehensive online operations and one of the world’s leading corporate travel networks in FCm Travel Solutions.

“I look forward to working with the company’s Board and its people throughout the world to build on this success.“

Flight Centre Limited’s Board of Directors also includes non-executives Howard Stack and Peter Barrow.