AIRTOURS is expected to continue its expansion by buying property and cruise ships abroad and even investing in theme parks after the collapse of its plans to buy First Choice.
As expected, the European Commission banned Airtours’ attempt to purchase its rival, despite the Helmshore operator offering to make several concessions (see page 3).
The move effectively blocks any further major consolidation in the UK market and Airtours is expected to focus on controlling the content of its programme and the facilities for holidaymakers.
First Choice said it would continue to look at opportunities to acquire in the UK and abroad but a merger deal with Kuoni, rejected by shareholders earlier this year, will not be resurrected.
In stark contrast to Thomson’s two profits warnings, First Choice released an upbeat statement saying it is on target to achieve its forecast pre-tax profit of £60m for year to October 31.