Avis Europe warns of tough times

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

Chairman 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.