ACCC gives Jetset the green light
International and domestic airline company Jetset Travelworld Limited (ASX: JET) can go ahead with the merger with Stella Travel Services Australia/New Zealand.
According to Australian Competition and Consumer Commission (ACCC) chairman Graeme Samuel, a close review of the merger and found it to be an advantage. Samuel said, “After looking very closely at the issues, the ACCC found that the merged Jetset-Stella entity and its member agents are likely to face continued and increasing competition from online travel agents, direct supply by airlines and hotels, and the largest travel retailer in Australia, Flight Centre.”
Samuel explained further that the internet has dramatically increase the number of available choices for customers. “As a result, not only are traditional bricks and mortar agents forced to compete harder on price and service to attract customers, but airlines, hotels and tour companies also have new ways of reaching those customers,” he said.
Jetset apparently has the website of Qantas as a working website, but Stella Travel has a website og its own. The merger, the ACCC head said, “is unlikely to substantially lessen competition.”
Jetset Travelworld operates Qantas Holidays and Qantas Business Travel, while Stella Travel Services has the key brands Harvey World Travel, Travelscene American Express, BestFlights, Travel 2, Travel Indochina, and the ATS Pacific networks.