Posts Tagged ‘Avis’
Thursday, September 15th, 2011
American car rental giant Avis has decided to pull out of the race to acquire budget rival Dollar Thrifty. According to the company it has withdrawn its $1.6 billion bid because the market conditions are unfavourable at the present time. Hertz Global is now the favourite to take over the firm.
Industry consultant, Neil Abrams, said Avis had also become frustrated by the process of trying to obtain antitrust approval from the authorities. Recent consolidation of the car hire business in the US means that there are only four major companies: Avis, Hertz, Dollar and Enterprise. Regulators are concerned that further consolidation will have a negative impact on the consumer.
Hertz and Avis have been keen to get their hands on the leisure market which Dollar successfully penetrates. Both of the larger firms are more geared to corporate customers. Dollar currently controls around 13 per cent of the US airport rental market relying on customers looking for a cheap deal rather than the latest model. Hertz is still to comment on the decision by Avis to withdraw its bid but has said it is continuing to seek approval from the Federal Trade Commission for a take over.
Earlier in the year Avis declared that it was to acquire its European counterpart. The company is currently seeking financing for the £636 million deal which is possibly another reason why it has pulled out of the race for Dollar.
Mr Abrams said that although the global economy remained shaky, the demand for rental vehicles was remarkably robust.
Tags: Avis, car rental, Dollar Thrifty, Enterprise, Hertz, rental vehicles
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Tuesday, July 12th, 2011
Car hire firm Hertz has indicated that it is not yet ready to give up the fight for control of Dollar Thrifty. The company said it would be extending its tender offer for the budget rental firm by a month. The exchange offer is viewed as a formality as Hertz will not be able to acquire Dollar unless it receives board approval due to a shareholder rights plan.
Avis is also in the running to takeover Dollar, but its recent $1 billion acquisition of Avis Europe has caused speculation that the rental company may not wish to enter a higher bid. Avis is yet to produce a counter offer to Hertz’s.
In May, Hertz offered $2.08 billion for Dollar having had a previous offer rejected by stake holders. The problem for all three companies is that nothing can happen until US antitrust regulators complete their investigations into how a takeover will affect competition.
The US Federal Trade Commission is concerned that consolidation of the car hire market has resulted in only four major rivals remaining: Enterprise, Avis, Hertz and Dollar. Seeing Dollar absorbed by one of its rivals is therefore worrying to those concerned with how less competition will impact on the consumer.
Because of the extension, the Hertz offer of $71.50 per share for Dollar will now expire on 5 August. The New York Stock Exchange on Monday saw Dollar shares being traded at $73.55. Although a small drop in price was recorded, it is still above the Hertz offer.
Tags: Avis, avis europe, car hire, Dollar Thrifty, Enterprise, Federal Trade Commission, Hertz
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Wednesday, June 15th, 2011
US car hire group, Avis Budget, has declared its intentions to buy Avis Europe by making an offer of 315 pence per share. The $1 billion deal will reunite the Avis brand across the Atlantic for the first time since 1986 when they split. The takeover offer has been given the nod by 60 per cent owner of the European division D’Ieteren, a Belgian based dealership.
Avis Europe boss, Pascal Bazin, said the deal would be good news for car hire customers who would benefit from a stronger global presence. The merging of the two companies would see Avis serving customers in more than 150 different countries around the globe. Mr Bazin added that it was also good news for Europe because there was now the potential to grow the brand in ways that the firm was unable to do in the past.
The buyout will also generate some $30 million in cost savings every year, according to Avis Budget, and will generate worldwide sales of $7 billion. Mr Bazin said it would also mean that there will be improved strategic benefits as well as more access to capital.
The move comes as Avis is still tied up in a long running battle with US rival Hertz over acquisition of budget hire company Dollar Thrifty. The two sides have been in talks with Dollar about a takeover, but neither has been able to secure antitrust approval from the US regulators.
Avis is currently the third largest rental company in the US ahead of Dollar Thrifty and behind Enterprise and Hertz.
Tags: Avis, Avis budget, avis europe, car hire, Dollar Thrifty, Enterprise, Hertz
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Tuesday, March 8th, 2011
Car rental giant Avis has announced that it intends to open more than 100 new branches across the UK by the end of 2011. The car hire firm also said that it had increased the number of locations supplying vehicles to leisure customers by 50 per cent. In the last two months the company has opened 37 new branches.
Customers now have access to Avis vehicles through business solutions provider Regus. The companies have entered into a partnership at 21 new locations and car hire can be booked at a Regus office.
Further partnership deals have been struck with hotels so that guests will have no difficulty in obtaining a quality vehicle with which to explore the local area.
Avis branches can now be found in cities and towns like Windsor, Huddersfield and Cheltenham. Vehicles can also be picked up from Avis rental outlets at 38 airports. Currently the company has 170 offices throughout the UK and Avis car hire is available on four continents.
Commercial boss at Avis UK, Anthony Ainsworth, said: “50% growth of Avis’ town and city branches in just two months is a significant achievement for us and puts us another step closer to reaching our ultimate goal of having an Avis branch within a few miles of every household in the UK. Next year will see the number of Avis branches increase with a further 100+ locations, demonstrating our commitment to giving customers the choice to find a car hire solution that best suits their needs.”
Tags: airports, Avis, car hire, car rental, hotels, Regus
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Thursday, February 24th, 2011
Cricket fans heading to India to watch the ICC Cricket World Cup are being offered a special 20 per cent discount on a range of economy and premium vehicles by Avis India. The car rental firm has launched the initiative to encourage self-drive throughout the country. The special rate is also available on chauffeur driven vehicles.
Mr Sunil Gupta, Avis India’s chief executive officer, described cricket as like a religion in his country. He added that in celebration of the fact the ICC was holding the World Cup in India, Avis wanted to offer its customers something special too. A wide range of well maintained vehicles are available from the smaller Suzuki Swift to the larger BMW 5 Series and Mercedes E and A Class. There are also MUVs and SUVs available including the Ford Endeavour, Tata Safari and the Toyota Innova.
The special 20 per cent off World Cup promotion will run from the 17 February to 2 April and applies top all bookings made through the Avis call-centre or on the Avis website. Self-drive vehicles can be booked for almost any period of time from just a day to a week or a month.
The tournament will run until 2 April and matches are being played in Bangladesh and Sri Lanka as well as India.
Avis India customers can pick up vehicles from a fleet of 1400 spread through 18 of the country’s major cities. Avis rental stations are conveniently located at easily accessible locations within the city.
Tags: Avis, Avis India, Avis rental, car rental, ICC Cricket World Cup, promotion, self-drive
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Wednesday, February 2nd, 2011
With a Royal Wedding adding an extra bank holiday to the calendar at Easter, Avis is offering car hire customers the opportunity to enjoy the beauty spots and historic sites of the UK. For those who do not own a vehicle, or who are tempted to try a different driving experience, car rental can be a convenient and economically sensible option.
By signing up for the Avis Preferred deal customers are guaranteed that the car keys will be handed over within three minutes of making their presence known at the rental station or a twenty pound note will.
The company’s head of marketing in the UK, Nick Mountfield, said: “Easter is always a very popular time of year to go away, but with the Royal Wedding happening this year, more people are choosing to holiday here instead. The extra bank holidays mean that by booking three days off work, Britons can actually have a whole week’s break and we’re already seeing more demand as people rush to firm up their travel plans. The UK has thousands of fantastic holiday destinations that are ideal for days out, weekends away and longer holidays, so we’re encouraging holidaymakers to make the most of their time off and explore the UK.”
Avis is extremely competitive with its rates, and customers can drive away with a vehicle for as little as £16 per day.
Mountfield added: “We’re definitely seeing a demand for booking early this Easter, so I’d urge customers to think ahead and book now in order to guarantee their vehicle of choice this April.”
Tags: Avis, car hire, car rental, Easter, Royal Wedding, travel
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Wednesday, November 3rd, 2010
Frontier Airlines and Avis Budget Group have announced a new deal to provide members of the airline’s loyalty scheme with easier access to Avis vehicles while also having the chance to earn additional loyalty points. The deal will give Avis access to Frontier’s passengers. Members of the EarlyReturns scheme will now be able to get as much as 25 per cent off the price of an Avis hire car.
EarlyReturns members will also be given 50 air miles if they hire a vehicle for up to four days, and 500 frequent flyer miles if they decide to keep a car for more than five days.
Stephen Wright, Avis Budget Group’s VP of key accounts for North America, said as well as enhancing the value of signing up for the EarlyReturns scheme with Frontier, the new agreement will give Avis access to some of the 15 million passengers who fly with the airline every year.
As well as being able to earn additional loyalty points by taking advantage of a rental deal through Avis, EarlyReturns members are given a mile for every mile they fly with Frontier. Additional benefits include access to early boarding privileges, the opportunity of earning extra air miles and free DIRECTV, where available.
Steve Mathwig, Frontier’s director of loyalty marketing, said he was pleased to be able to announce the new partnership with leading car rental brand Avis. He added that the deal would strengthen customer loyalty to both brands and give frequent flyers an enhanced travel experience.
Tags: Avis, Avis Budget Group, car rental, EarlyReturns, Frontier Airlines, hire car, loyalty points, loyalty scheme
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Wednesday, October 20th, 2010
Avis, one of the country’s most popular car hire brands, has announced it will now be serving customers through a new branch in London’s Victoria train, underground and coach station. The branch is conveniently situated for those travelling to the capital wishing to continue their journey by car. Victoria is currently one of the busiest stations in London, and the new Avis office will also benefit residents looking to get out of the city.
Avis UK’s head of marketing, Nick Mountfield, said the new office at Victoria marks a significant milestone in Avis’ expansion plans throughout the country. He added that the rental firm continued to look for suitable sites across the UK so it could increase its market share while offering loyal customers affordable transport solutions.
He went on to say that it was particularly gratifying to be able to offer car hire solutions at one of London’s busiest travel hubs. The opening of the new site coincides with the relocation of Avis’ Mayfair branch.
As of now, customers looking to hire a car in Mayfair will find the Avis office at Marble Arch in the Marriott Hotel. This is the ideal situation for those wishing to explore central London before collecting their rental vehicle.
As well as expanding locations throughout the capital, Avis offers residents the opportunity of having a vehicle delivered and collected from their front door or an equally convenient location. The Home Delivery service is aimed at giving people who don’t have the time to travel to an Avis branch the option of convenient car hire.
Tags: Avis, car hire, coach, Marriott, rental vehicle, train, transport, travel, underground, Victoria station
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Thursday, October 7th, 2010
Dollar Thrifty’s management was foiled in its attempts to reach a deal with Hertz last week by its own shareholders. The day before the vote on whether to accept Hertz’s offer, which equated to $50.88 per share, Hertz announced that the offer would be its last. It is believed that shareholders voted against the offer because Avis had announced that its counter offer of $53 per share would remain on the table.
Avis has said it will now work with Dollar Thrifty to persuade antitrust regulators that a tie up will not breach competition guidelines. The antitrust issue is believed to be one of the main reasons Dollar Thrifty’s board favoured a deal with Hertz, even though Avis has offered more money for the firm.
Dollar Thrifty has asked Avis not to pursue its bid until the authorities give approval for a deal. Avis has said it is willing to wait.
The battle for Dollar Thrifty has been going on for months. Both Hertz and Avis believe the acquisition of a budget car hire brand like Dollar will help grow revenue at a time when the business traveller is noticeably absent.
Consolidation is also seen by many as a way of ensuring future growth. In 2002, the company which owns Avis bought the Budget brand. In 2007, Enterprise’s parent acquired Alamo and National. According to IBISWorld, Enterprise and its subsidiaries now have a market share of 37 per cent; Hertz owns 20 per cent and Avis currently has 17 per cent. Dollar Thrifty has less than seven per cent.
Tags: Alamo, Avis, car hire, Dollar Thrifty, Enterprise, Hertz, National
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Tuesday, October 5th, 2010
Car hire giant Avis has announced it will increase the number of electric vehicles in its European fleet by the end of 2011. The firm recently signed an order for 500 new Renault electric cars. The Kangoo Express ZE and the Fluence ZE will be available to customers in seven EU countries including Spain, Portugal, France, Germany, Belgium, Italy and the United Kingdom.
Uwe Hochgeschurtz, Renault’s corporate sales senior vice president, said: ”We are the only European carmaker who is developing a complete range of affordable electric vehicles with our own batteries, our own technologies and our own production system to guarantee a high level of quality and performance. By hiring an electric vehicle through Avis, the public will be able to experience new driving technology and learn about the environmental benefits of electric vehicles.”
Renault is also developing two other vehicles which will run exclusively on electric power. The Renault ZOE is a hatchback designed for use on a day-to-day basis and the Renault Twizy will be a two-seat car specifically designed for manoeuvrability in the city.
Pascal Bazin, Avis Europe chief executive officer, said: At Avis, we’re committed to providing customers with choice when it comes to mobility and our partnership with Renault is another way in which we are fulfilling this commitment by expanding our fleet to include electric vehicles.”
“The vehicles complement our existing mobility offer, providing an alternative to traditional car hire that will benefit both business and leisure customers who are concerned about their impact on the environment,” he added.
Tags: Avis, car hire, electric vehicles, Fluence, Kangoo Express, Renault, Twizy
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