TMC MERGERS
Digital editor Tom Newcombe compiles the latest news from
buyingbusinesstravel.com
TMC sector sees wave of acquisitions
RAIL
THE END OF 2016 SAW A NUMBER OF ACQUISITIONS involving major players in the travel management sector. Corporate Travel Management (CTM) expanded its global presence with the acquisition of Redfern Travel. The deal will make CTM one of the top seven TMCs in the UK.
It also announced the acquisition of Australian- based Andrew Jones Travel. Gray Dawes Travel struck deals with two TMCs – Travel Management Group (TMG) and Cambridge Business Travel (CBT).
Chris Grayling Chris Grayling: shake-up
for UK rail network TRANSPORT SECRETARY CHRIS GRAYLING (see Hotlist, p70) has unveiled plans to completely overhaul the running of the country’s rail network, creating integrated operating teams between franchise holders and Network Rail to join up the operation of tracks and trains.
Grayling argued the relationship between the tracks and trains must change. “In my experience, passengers don’t understand the division between the two,” he said. “They just want someone to be in charge. I intend to start bringing back together the operation of track and train. “Our railway is much better run by one joined-up team
of people. They don’t have to work for the same company – they do have to work in the same team.” The RMT union said it would oppose the plans. “This
is the Tory government dragging the railways back to the failed and lethal Railtrack model of the private sector running infrastructure,” said RMT general secretary Mick Cash. “The idea that what Britain’s railways need is more privatisation is ludicrous.” The changes will come in as each franchise is renewed over the next few years. Under the new plans the government wants a fully-privatised railway line, linking Oxford and Cambridge. It will not be run by Network Rail. The link, which was axed in the 1960s, will have a branch to Milton Keynes and eventually extend to Norwich and Ipswich.
A new organisation, East West Rail, will be created to secure investment and build the line, eventually becoming a private company that operates train services.
8 BBT January/February 2017 AIRLINES
Norwegian wins battle for transatlantic permit
THE US GOVERNMENT HAS APPROVED Norwegian Air International’s long-awaited application for a foreign carrier permit. The airline has fought for a number of years to establish a subsidiary in Ireland to offer low-cost transatlantic routes. While Norwegian is already flying to New York and other US cities, its ability to expand globally has been limited to the air rights that Norway has negotiated. However, as Ireland is a member of the European Union, unlike Norway, it can tap into aviation rights that the European Union has secured. Critics, including rival airlines and unions, claim the move is an attempt to circumvent Norway’s strict labour laws by hiring cheaper pilots through Asia. The unions have also said if a licence is granted it will create “unfair competition with EU and US carriers” and “threaten to degrade labour standards”. The airline denies this claim and said the move is to gain access to future traffic rights to and from the EU.
Clarity Travel Management and Portman Travel merged creating the seventh largest TMC in the UK. The two companies will become a single business following the acquisition of Portman by Clarity owners Mawasem Travel and Tourism. The TMC announced its leadership team, with Redmond Walsh, currently vice-president UK & Europe at Mawasem Travel and Tourism, taking on the additional role of executive chairman of Portman/Clarity. CEO Pat McDonagh continues to report directly to Walsh.
Any trade unionist with any sense wants to bring down this bloody working-class-hating Tory government
The Times reports on a speech by RMT president Sean Hoyle
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