Move “makes sense”, says S8

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26/10/2006

Move “makes sense”, says S8

S8 chairwoman Jenny Hutson has said the move by rival Flight Centre made “huge sense”, writes Claire Sweeney.

“Going private gives Flight Centre the ability to drive and reposition the business,” she said.

“The [stock] market is unrelenting in its expectations and is entitled to be.”

Flight Centre’s bid to go private has been provoked by shareholders insatiable appetite for immediate results, according to founder and managing director Graham Turner, who has a “five-year horizon” to turn the company around.

Hutson said that while it was “impossible” to forecast five years ahead, the industry would become more economically driven.

“Five years from now 20 per cent of what S8 does today simply won’t exist”, she said.

“In every industry we’re challenged to deliver the same thing as we delivered yesterday with greater productivity and, particularly for commodities, for a lower price,” Hutson said.

26 October 2006

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