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September 2022, Virtual
September 29 2022, Virtual
American Express’ proposed joint venture for its TMC will provide more investment for the business travel arm, according to Amex.
The plan to spin off Amex Global Business Travel into a joint venture with US investment firm Certares was announced last month and is due to be completed in the second quarter of 2014.
New York-based Certares is planning to pump between $700 million and $1 billion into the new 50:50 joint venture with the final figure to be decided closer to the deal’s completion. The business will retain the Amex Global Business Travel brand with staff being transferred over to the new company.
Amex chief financial officer Jeff Campbell said: “We are very excited about this transaction, because we think the influx of the capital from the other partners will really help the joint venture to do a better job.
“We have so many great investment alternatives here at American Express that - at times - it had been difficult for travel to compete for our investment dollars.
“If there is a joint venture that’s $700 million to $1 billion goes into the joint venture, it does not go into the coffers of American Express.
“Our expectation is that the joint venture will use that capital over time to grow and expand as a business and we will benefit from that growth and expansion as a 50 per cent owner of the joint venture.”
American Express saw a 5 per cent increase in travel commissions and fees to $490 million for the three months to the end of September, which compared to $465 million during the same quarter in 2012.