MTG agreement unchanged

MAGELLAN Travel Group has moved quickly to assuage the concerns of some members about their proposed agreement under Helloworld’s ownership ( TD yesterday), with md Andrew Macfarlane confirming there is no requirement that agents not transact business with any suppliers without HLO approval.

“Magellan and Helloworld understand and respect that our members are independent agents, and we would not request or require that,” he said.

The receipt of the third formal offer from Magellan last Fri sparked further discussions about its terms and conditions within some members of the group.

Macfarlane said contrary to claims made in a document circulating among members, “the commercial terms of the new agreement are the same as the previous agreements, bar the inclusion of additional guarantees and protections around override income and member fees”.

It’s understood HLO has locked in the existing fees and returns to members for five years, with one Magellan agent telling TD yesterday he was “cock-a-hoop” at the proposed arrangement.

Macfarlane said Magellan had been undergoing an extensive communication process around the agreement, with member feedback already leading to the refinement of three clauses.

Last Fri Helloworld ceo Andrew Burnes said the $32.5 million transaction was taking longer than expected, but was confident it would settle by the end of Feb.