Affordable confirms merger talks as it faces Avis legal action

Friday, 14 Feb, 2017 0

Affordable Car Hire has confirmed it is in advanced discussions with Auto Europe about a potential merger.

The car rental broker issued a statement about the deal as reports emerged that it is being sued by Avis Budget for $2.2 million over late payment.

Avis filed a legal action at the District Court of the District of New Jersey on January 27 claiming Affordable has not met monthly payments since last August.

The documents state that Affordable’s directors, Angela Day and husband James Moore, had told Avis Budget that ‘attempting to pay even a significant portion of the funds would render Affordable Car Hire bankrupt’.

In its filing, Avis Budget also accused the couple of focusing on their non car rental divisions, AffordableXtras and Affordable Cruising, as they ‘recognise that Affordable is sinking’.

Moore told TravelMole he could not comment on the legal proceedings but said discussions had been going on for the last few months about a merger with Auto Europe.

Day thanked the UK travel agency community for its ‘continued loyalty and support’ and said she was ‘excited about the possibilities the merger opens up’ for the business.

A statement said Auto Europe, founded in 1954, has an ‘excellent understanding’ of the needs of the travel agency market.

It added: "Imad Khalidi, CEO of Auto Europe, and Niall McDevitt, MD of Auto Europe, believe the merger will strengthen both companies’ product and service as well as provide a solid financial basis for Affordable Car Hire’s future growth."

It said further details of the proposed merger would be announced shortly.

Affordable Car Hire launched AffordableXtras, a new division selling holiday extras, last September.

It sells pre-bookable holiday ancillary products such as airport parking, airport hotels and lounge passes as well as taxi transfers and executive cars.

 



 

profileimage

Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...