THE Association of Independent Tour
Operators is expected to drop its objections to the merger of Airtours and
First Choice – two years after being instrumental in blocking the deal.
AITO’s
council will discuss the issue this week and is ready to give it the all-clear.
The
stance would be a massive U-turn by AITO which played a key role in ensuring
the merger was thrown out by the European Commission in 1999.
It
argued such a deal would dent competition and harm members’ business.
But
AITO deputy chairman Noel Josephides said the industry has undergone
significant change since 1999.
“This
is my stance and whether AITO agree, I don’t know,” said Josephides. “But I
believe the industry has moved on in the past two years and there are not the
same concerns.
“We
were right to fight the merger in 1999 but the big companies don’t have the
grip they used to and aren’t obsessed with expansion and power. There is greater
maturity and co-operation.
“One
of our major concerns was that a merger would restrict access to aircraft
seats. But low-cost carriers are making in-roads, there are cheap scheduled
fares in the market and the independent sector is growing. The charters are
looking to diversify and appear to want our business.
“We
are thriving in our niche markets and whether there are three or four big
players will not make any difference.”
Although
stressing they were only his personal views, it would be a major surprise if
they were not adopted by AITO.
AITO
chairman Martin Garland refused to be drawn on the merger claiming it was being
left in the hands of Josephides.
“He
is our expert on issues like this,” he said.
Airtours is still waiting for an EC ruling on its
appeal against the original decision to block the deal. First Choice is also
believed to be keen on a tie-up with sources claiming the operators have
already forged close ties.