News: Flight Centre creates JV to target Asia

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Travel agent Flight Centre Travel Group Limited (ASX:FLT) will team up with Vietnam’s largest privately owned travel and hospitality group to target Asia. 

 

Flight Centre and Thien Mihn Group (TMG) will create a destination management company to offer tours, excursions, transfers and destination services across the region. 

 

Both companies will initially contribute $US1.5 million in capital and Flight Centre will hold a 49 per cent interest in the JV. 

 

The JV will operate and expand Thien Mihn Group’s existing Buffalo Tours businesses in Thailand, Laos, Cambodia and Myanmar. 

 

Buffalo Tours is also expected to progressively launch in Indonesia, Malaysia, Singapore, Hong Kong, China and Japan. 

 

Flight Centre Managing Director Graham Turner says destination management is a natural extension of the company’s travel business. 

 

Flight Centre Travel Group lifted its net profit to almost $111 million in the first half of the 2014 financial year.