In the middle of the second and third round of lockdowns across Australia and some of its global markets, Flight Centre has decided that that is a good time to invest in a new business, with potential.
The new project will see Flight Centre expand its corporate travel footprint in Asia by launching a Japanese joint venture next January.
The company told the ASX that it plans to launch its leading FCM travel management business in Japan, the world’s fourth-largest corporate travel market, via a joint venture with Tokyo-based NSF Engagement Corporation.
Flight Centre CEO Graham Turner said Japan was a significant addition to the global FCM network, which now extended to 97 countries through company-owned businesses and licensing agreements with independent local operators.
“Japan is a key corporate market because of its size and importance within the global economy as a business hub for multi-national companies,” Mr Turner told the ASX on Thursday.
“By securing an equity position in this crucial market, we will enhance our ability to win new local, regional and multi-national accounts, while also gaining greater control over and enhancing the service we provide to our existing customers with operations in Japan.”
Mr Turner said he anticipated FCM would become a very significant business and a valuable addition to the company’s Asian network, which also includes businesses in China including SAR Hong Kong, India Singapore and Malaysia.
There seems to be no concerns that the Covid driven lockdowns and working from home trend will restrict this new business.
Japanese office workers and corporate executives have not gone home to the same degrees as those in Australia, NZ, the US and much if Europe
News of the new venture came a week after the company released its 2020-21 results showing more losses, but a confident outlook from management about the way out of the current morass.
Flight Centre reiterated a return to monthly profitability in its corporate and leisure divisions by the end of the 2022 financial year.
