THE LIBRA Holidays Group is pinning hopes of future
expansion on its aviation division and slowing down growth in its UK tour
operations.
The group’s aviation division, which comprises Excel
Airways, Excel Aviation and the recently acquired Freedom Flights, is due to be
floated on the London Stock Exchange by the end of this year.
Libra intends to keep its 51% stake and overall
control of the business but admitted it may sell part of its shareholding if it
needs extra capital.
Group chief executive Andreas Drakou said: “We are
increasing our shared capital for the aviation division and at this stage we
are not selling any shares. If we feel we can get the right amount, we might
sell 10%, it depends on market conditions.”
He added the listing would provide a strong base for
future growth and strengthen the group’s overall position.
About 30% of the aviation division is used by the
Libra group, while the rest of its business comes from third parties.
Charter carrier Excel will fly 1.4 million passengers
to European holiday destinations this year from Manchester and Gatwick.
Former British Airways executive Eamonn Mullaney is
chairman of the operation, which has a fleet of six Boeing 737s and was formed
after the takeover of Sabre Airways by Libra last year.
The group has also decided to put the brakes on
expansion in its UK tour operation by abandoning its traditional policy of
piling on extra capacity each year.
Drakou said the operations, which include Libra
Holidays, Goldenjoy and direct-sell brand Sky Holidays, have now reached a
level of steady growth.
“We do not intend to expand the tour operations as
quickly as we have done in the past. Certainly we would not increase capacity,”
he said.
But over the next three years, the tour operator will
look at growth through acquisitions of niche businesses.
The group also expects
“normal expansion” in its Greece and Spain programmes, which are likely to be
its best performers. Drakou added: “The growth will be in Greece and Spain and
we believe there is money to be made in niche products.”