First Choice admits to mainstream sale talks
First Choice today responded to weekend newspaper speculation tipping MyTravel as a potential purchaser of its mainstream holiday arm.
The Sunday Times said it was understood that Airtours parent MyTravel was in “preliminary talks” to acquire the division from First Choice – speculation now confirmed by the Airtours owner.
But the newspaper also claimed that analysts said it would also be a likely target for Thomas Cook.
A First Choice statement said: “The board of First Choice Holidays confirms that it has been reviewing how it might continue to maximise the potential of this market leading tour operating business.
“It is considering a range of alternatives in this market and discussions with a number of parties are at a preliminary stage.
“However, there can be no certainty that any transaction will be forthcoming.”
Disposing of the mainstream holiday business would leave First Choice to concentrate on its activity and specialist holiday operations and signal a major industry shake-up.
A combination of the largest part of First Choice and either MyTravel or Thomas Cook would almost certainly attract competition authority attention.
A bid for First Choice by the then Airtours was blocked in 1999 although the ruling was subsequently overturned.
Industry experts believe consolidation by operators is more likely now than ever due to the intense competition posed by budget airlines and online travel firms.
Report by Phil Davies
Phil Davies
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