Magellan faces new rival
EXPRESS Travel Group ceo Tom Manwaring has moved swiftly to capitalise on unrest within the Magellan Travel Group (MTG), issuing an open letter to disaffected members of the soon-to-be Helloworld subsidiary offering them a “new home”.
Travel Daily has obtained a copy of the pitch which was distributed on Mon afternoon, with Express Travel Group offering a new Trust Deed which would be “jointly and majority owned by members” in partnership with Manwaring’s “Australian, family-owned, fully integrated travel company, operating in Australia for over 32 years with a remunerated TTV of over $1 billion, over 100 staff and support from five divisions nationally”.
The move follows the bombshell announcement of the sale of Magellan to Helloworld ( TD 19 Dec), which Manwaring describes in the letter as “one of the top five shocks in my 45 years in travel...that surprise, I am sure would have stunned you, the members to the core”.
Manwaring said he believes the purchase by Helloworld drives a reduction in distribution competition, and “more importantly, removes independent choice for MTG members and agents across Australia”.
The Trust Deed for ex-MTG members proposed by Express “will be set out to ensure any change or sale cannot occur without an ALL member majority vote...restrictions and conditions of joining will be determined with the membership,” he wrote, with all other existing conditions remaining in place along with the addition of some “further exclusive benefits”.
Manwaring has invited MTG members interested in exploring the new option to contact him or his senior executive team personally.
The Express offer is the latest twist in the Magellan takeover saga, which has also seen agents representing about a third of the group co-sign a letter to the MTG board ( TD yesterday) as a “strong united approach” expressing their displeasure at the proposed sale.
Magellan chairman Andrew Jones has acknowledged concerns by a “minority of members” around a lack of consultation, committing to providing full details of the deal at a series of roadshows later this month.
Just before Christmas Helloworld confirmed formal transaction documentation had been executed, with the Magellan acquisition “expected to complete in early Jan 2018”.