MANCHESTER, England -- MyTravel Group here signed a letter of
intent to sell Auto Europe to Soros Purchasing in New York for $85
million.
MyTravel (formerly Airtours) said it expects to sign a
definitive sales agreement with Soros by Nov. 15 and to close in
late November or early December.
The purchase encompasses the North American and European Auto
Europe leisure car rental businesses as well as MyTravel's
DriveAway Holidays business in Australia. The sale is conditional
on stockholder approval and clearance from antitrust
regulators.
Auto Europe president Imad Khalidi said management is "involved"
in the purchase, as well, which would indicate that current
management will remain in place.
A MyTravel source in the U.K. said other investors continue to
be interested in buying Auto Europe but will have to work fast to
beat the Nov. 15 deadline.
Meanwhile, MyTravel brands continue to change hands as
Flightserv, a subsidiary of eResource Capital Group, completed the
$16.5 million purchase of Vacation Express and SunTrips.
The sale called for an immediate $2 million cash payment,
another $10 million to be paid over seven years and $4.5 million in
payments over three years per "related agreements."
"All passengers currently booked with SunTrips and Vacation
Express will travel as scheduled," said Flightserv president Kent
Elsbree, adding, "Travel agents should feel confident booking with
both. The 2004 charter program will operate as originally
scheduled."
Michael Friisdahl, president of MyTravel Canada Holidays, said
his unit contracted to sell the two packagers to a company that was
already involved in their charter operations, noting Vacation
Express "depended on Flightserv as its aviation-management company"
for the last three years.
Flightserv secured six 148-seat 737-300s from Pace Airlines, the
carrier that operates Hooters Air's 737s, for Vacation Express,
while a 757 was chartered for SunTrips. The company offers aircraft
and reservations services to tour operators, corporate travel
departments, sports teams and casinos.
Vacation Express will continue to operate from its Atlanta
headquarters, and SunTrips will remain at its San Jose, Calif.,
location under the direction of FS Tours, a Flightserv
subsidiary.
Carlisle Vason, previously vice president of operations at Air
Jamaica Vacations, was named president and CEO of FS Tours.