AIRTOURS is believed to have offered to sever links with Advantage Travel Centres in a bid to win European Commission backing for a proposed takeover of First Choice.
In a package of concessions to Brussels, Airtours stated it is prepared to terminate its agreement with more than 300 preferred agents, following EC concerns over distribution.
Sources say this relates to its franchise agreement with Advantage, in which it has a 15% stake. Airtours declined to comment, while Advantage commercial director Neil Armorgie said he knew nothing of the proposals.
Unijet is thought to form the basis of the package as Airtours looks to create a credible fourth player with a market share of around 6%. The EC believes having only three players would be anti-competitive.
Although Virgin and Cosmos have been touted as possible buyers, Unijet joint managing director Terry Brown said he would consider a management buy-out with fellow MD Nigel Jenkins.
Meanwhile, Airtours said it will go to the European Court if it is unsatisfied with the reasons behind any decision to block its bid for First Choice.
“It could well have an impact on any future acquisitions in Europe. We need to know in law what we can and can’t do,” said group finance director Tim Byrne.
He admitted the process was “frustrating”.
n See Analysis, page 6