Bottom Line: Airtours takes a dive
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.AIRTOURS is ruffling a few feathers with its policy of going for growth through acquisitions. Confirmation yesterday that it was negotiating to buy SAS Leisure of Sweden for pounds 74m and a cruise ship for pounds 16m peeled 18p off the shares, for a two-day drop of 32p.
Analysts are concerned, and with good reason. The leisure sector is littered with disasters arising from headstrong acquisition policies.
There are two advantages in buying SAS. It will help to ease the strain of the incessant battle with Thomson for UK market share - SAS is also the market leader in what is the third-biggest European market for tour operations. Another benefit is the two-way holiday trade between the UK and Scandinavia.
That is fine, but investors might like to ask Airtours why it is not exploiting upmarket tour operations in the UK.
Kuoni, for example, earns 10 times more profit per passenger than Airtours' high volume, sell-it- cheap businesses.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments