Helloworld to acquire AOT Group?

Helloworld to acquire AOT Group?

Helloworld has this morning responded to media speculations that it is in the midst of acquiring AOT Group.

According to reports from the Australian Financial Review, there are whispers within market circles that the Helloworld board, led by former Qantas general counsel chief Brett Jonson, has had serious discussions about a potential deal.

Helloworld has confirmed that they are in discussions with AOT Group regarding a potential acquisition of AOT by Helloworld.

“The evaluation of the potential acquisition is still in progress. No transaction has been agreed or approved by the Helloworld Board and there is no certainty that the current discussions will lead to any transactions,” Helloworld said in a statement.

But AOT certainly has a close relationship with Helloworld, as AFR points out, and aside from AOT’s chief exec Andrew Burnes’ shareholding, AOT bought Helloworld’s inbound tour unit ATS Pacific in August 2013.

The two companies continue to do business together and a potential merger would allow AOT to sell its travel services through Helloworld’s distribution network of 700-odd travel agencies.

AFR also made note that this could be a reason for why a replacement for outgoing CEO Elizabeth Gaines has not yet been announced, despite the board saying it is “well advanced” in finding a new CEO.

Helloworld is understood to have retained Fort Street Advisers’ Ben Keeble (a former CVC and UBS executive) for advice, which has helped stoke the speculation.

Helloworld also needs to improve its paper-thin margins, according to AFR, with its FY15 underperforming compared to fellow listed agent Flight Centre, who returned 65% for shareholders over the past five years, while Helloworld lost about the same for investors.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

    Latest comments
    1. More likely scenario is that it’s actually AOT acquiring Helloworld. Sad, sad state of affairs at HLO, and has been since the day Rob Gurney managed to squeeze his inflated ego into the CEO’s office. LOTS of senior management there will most definitely be shown the door. Which just confirms that ‘What goes around … ‘

    2. These guys at Helloworld are just incompetent, they just sold their Inbound business to AOT at a massive loss and now they want to buy it back again. Are these Board members simply stupid, or corrupt? Qantas has a lot to answer for this total misery, Johnston their Chairpuppet is now in the act.
      Heard a few senior staff are looking at the door….total misery.

afr aot group elizabeth gaines helloworld

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]