FCM Travel Solutions’ parent company Flight Centre Travel Group (FCTG) Australia has announced a comprehensive package of initiatives to strengthen its balance sheet and liquidity position.
These initiatives mean that FCTG has secured a total AUD $900 million through a mix of capital raising and new debt facilities. They complement previously announced cost reduction and cash preservation initiatives implemented by FCTG to help overcome the unprecedented travel and trading restrictions imposed by governments in response to the covid-19 pandemic. The additional funding means the group’s total liquidity position now amounts to over AUD $2.3 billion.
This capital infusion will enable FCTG and all of its brands in India to increase the focus on key investments and to support all customers even in a situation where challenging travel trading conditions continue to prevail. The move also allows FCTG to execute its long-term strategy, expand its capabilities and service a significant number of new clients.
Rakshit Desai, Managing Director, Flight Centre Travel Group India said, "This announcement of additional funding is an important step in giving our customers the confidence that we are ready to support them when their travel activity resumes, and that we will also be in a position to accelerate our growth in the future.”
He also added, “The capital infusion is a reflection of the trust that investors have in FCTG and the increasing recognition of our strong fundamentals in the travel market. This funding, along with steps that we are taking locally in India, will ensure that we are prepared for a speedy recovery once the situation stabilises."