NEWS — HOT STORIES 4
Sabre seeks buyer for
lastminute.com after three years of losses for the struggling OTA
describing the latter as “one of Europe’s strongest travel brands”. Travelocity sites in the US and Canada sell Expedia
content and use Expedia technology following a deal between Sabre and Expedia last August.
Lastminute.com reported losses for three of the
four years to 2012, the last year for which figures are available. Sabre reported a $34 million loss at its Travelocity division in the six months to June, when revenues fell 41% year on year. The loss compared with a $125 million profit in the first half of 2013. Sabre reported its group revenue “excluding
Ian Taylor
Sabre has put
lastminute.com up for sale as it restructures its lossmaking online travel agency (OTA) business. The US technology group declined to confirm
or deny plans to sell
lastminute.com following reports that it has appointed corporate finance firm Houlihan Lokey to find a buyer. A Sabre spokeswoman told Travel Weekly: “We’re
always reviewing options to make our technology company as successful as possible.” Sabre subsidiary Travelocity paid £577 million
for
lastminute.com in 2005. But both North American OTA Travelocity and
lastminute.com appear to have struggled despite Sabre
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Travelocity” increased to June.
Lastminute.com was among the most successful
UK start-ups of the 1990s
dot.com boom. After the company floated on the London Stock
Exchange in 2000 its share price peaked at 555p. Then the
dot.com bubble burst and by 2002
lastminute.com stock was trading as low as 17p.
“We’re always reviewing options to make our company successful”
The site’s co-founder Brent Hoberman said of
lastminute.com this week: “It’s now a standard travel site. It’s just a portal.” He told The Times: “I could see myself helping [a buyer]. It depends on who and what their vision is.”
Monarch review ‘puts 1,000 jobs at risk’ Ian Taylor
In a statement, Monarch said: “The company
Monarch Airlines staff face an uncertain future following reports that 1,000 jobs could go as a result of a strategic review at the company. Group chief executive Andrew Swaffield confirmed the review last week in an interview with Travel Weekly. Swaffield made clear he had decided to end charter operations and was likely to ditch long- haul flying as Monarch Airlines turns into “a low-cost scheduled European carrier”. The carrier also revealed it would cease flying from East Midlands next April. Monarch confirmed it has made no
statement on any jobs at risk, despite a Sunday Times report that more than 1,000 jobs – one-third of the airline’s workforce – were under threat.
6 •
travelweekly.co.uk — 21 August 2014
has previously stated that the new management team is conducting a strategic review of the group’s businesses, including in relation to their operations, ownership and financing. That review is ongoing and further announcements will be made upon its conclusion or as otherwise appropriate.” Monarch operates eight routes from East Midlands. However, Malta is the only unique destination it offers and Ryanair announced a twice-weekly East Midlands-Malta service for summer 2015 last week. Monarch’s tour operating and aircraft engineering businesses are understood to be profitable and a Monarch spokesman said:
“Cosmos will continue to operate as it does now.” US firm Seabury Capital is advising the group and the Mantegazza family in a search for new investors. ❯ Letter of the Week, page 25
MORE HOT STORIES
“Further announcements
will be made upon the review’s conclusion”
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