25 February 2009

Travelport to consolidate finance and HR into UK head office

Travelport is to consolidate its corporate financial and human resources operations into its UK GDS headquarters in the fourth quarter of 2009.

The company said the move was part of ongoing efforts to "operate in the most effective manner".

Chief financial officer Michael Rescoe and executive vice president human resources Jo-Anne Kruse have decided not to relocate to the Langley offices, near Heathrow, and will therefore be leaving the company in October 2009.

As part of the transition, Philip Emery, currently chief financial officer Travelport GDS, will be appointed deputy chief financial officer of Travelport and will report to Rescoe.

Following the transition period, the company expects to appoint Emery as chief financial officer of Travelport.

The company revealed the relocation plans as it announced its fourth quarter and full year 2008 results ended December 31.

It reported net revenue of $524 million and adjusted net revenue of $525 million for the fourth quarter of 2008, representing a 10% decrease in adjusted net revenue over the same period last year.

It achieved EBITDA of $117 million and adjusted EBITDA of $149 million in the fourth quarter of 2008, representing an increase of 10% over the same period last year.

For the full year 2008, Travelport adjusted revenue fell 3% and adjusted EBITDA increased 3%.

CEO and president Jeff Clarke said: "I’m pleased Travelport was able to grow profitability in the fourth quarter and full year 2008 given the significant decline in industry demand and the unprecedented macroeconomic environment.

"This was made possible by the excellent execution during these challenging times. The environment for travel continued to weaken into the fourth quarter as the expected airline capacity reductions materialized and the demand for those seats continued to be impacted by the global recession.

"We expect 2009 may be a challenging year as our incremental year-over-year cost savings may not be sufficient to offset the potential weaker demand for travel services facing the travel industry."

By Bev Fearis