Europe has warned of a 5%-10% drop in revenues due to the affect of the Iraq
war and a weak European market.

Sir Bob Reid said at the car rental operator’s annual general meeting last
week: “We expect this conditions to affect particularly the first half of
the year, with some recovery through the peak summer months.”

He added corporate and long-haul business
had fallen, although its European leisure business was continuing to show
growth. To counter the downturn, the company aims to keep tight control on its
operational costs.