Flight Centre Travel Group (FCTG), the parent company of FCM
Travel Solutions, has announced a package of initiatives to strengthen its
balance sheet and liquidity, securing the TMC’s financial position during the
Covid-19 pandemic.
The initiatives mean FCTG has secured a total AUD $900
million (£451 million) through a mix of capital raising and new debt facilities, which
complement previously announced cost reduction and cash preservation
initiatives implemented to overcome travel and trading restrictions imposed by
governments during the crisis.
According to FCM, this will allow it to increase its focus
on key investments and to support customers during prolonged challenging business
travel trading conditions. It will also enable it to continue with its
long-term strategy, expand its capabilities and service new clients. The TMC’s total
liquidity position now amounts to more than AUD $2.3 billion (£1.15 billion).
The company said it has continued to see strong customer activity
in both sales and implementation despite the coronavirus outbreak, claiming it
has seen record wins year to date.
FCM’s global managing director Marcus Eklund (pictured) said: “Our
priority is to support customers and reassure them that they can trust and
count on FCM during these unprecedented times and beyond. FCM’s financial
strength is a key element of that trust. This announcement of additional
funding is an important step in giving our customers the confidence that we are
ready to support them when their business travel activity resumes, and that we
will also be in a position to accelerate FCM’s growth in the future.”