I didnt think Transonic would get involved in this sort of...

I didnt think Transonic would get involved in this sort of retail business.

Wonder what Best Flights profitability is like.

These guys must have considered tvl but either they didn't like the books or the asking price was too high.

Hmmm.

Very few available players left.


Transonic buys Best Flights

Transonic Travel has acquired Perth-based online retail travel agency Best Flights for $9.5 million.


Launched in 2001, Best Flights’ sales topped $53 million in 2004/05, up from $28 million the previous year.

Transonic ceo Peter Lacaze said Best Flights' business model was based on advertising a wide range of air fares and leisure products on its website and through its e-newsletter, with bookings handled by the company's call centre.

It has recently introduced a Best Cruises division to capitalise on growth in that market.

“[The acquisition] will take us into the high-growth online retail travel market, which we have been watching for some time,” Lacaze said. “This market has matured and, with the increase in broadband penetration, we believe this is the right time to enter it.”

Lacaze said the acquisition, funded through cash reserves, would be earnings-per-share positive immediately, with the full benefits in the second half of 2005/06.

Best Flights would become part of Transonic's Air Services division.

Gary Elliott, founder and md of Best Flights, and all the company’s staff will remain in their present roles.

Best Flights is Transonic's fourth acquisition since its listing on the Australian Stock Exchange in May last year.

Lacaze said the transaction was in line with the group's strategy to make bolt-on acquisitions that complemented and benefited its existing operations.


22 September 2005