Turner: Morale was sapped as share price fell

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26/10/2006

Turner: Morale was sapped as share price fell
Steve Jones

Flight Centre will look to stem the falling morale of staff as management prepare to buy-out the company and turn the retailer into a private company.

Managing director Graham Turner admitted during a media briefing that its tumbling share price in recent years has had a direct impact on staff.

Around 1500 staff are shareholders, although only senior executives hold any sizeable stake.

Turner, explaining the rationale behind the plans, said morale was one of the damaging affects of being a publicly-listed business.

“Our share price has been languishing and that has been negative in terms of staff morale over the last two or three years,” Turner said. “Becoming a private structure will help that.”

Growing its share of Internet bookings will also be key strategy, he said. While conceding it could cannibalise its bricks and mortar shop business, Turner said it was duty bound to grow web bookings.

“The reality is that most people want more than one channel to deal with. It’s not about competing with competitors but about keeping your customers happy. We have to offer what they want,” Turner said.

26 October 2006

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