Travelocity.com (NASDAQ: TVLY) announced today that it plans to join Japan Airlines (JAL), All Nippon Airways (ANA) and 11 other major international airlines to form an online company selling travel products and services in the growing Japanese market.
The new venture - in which Travelocity.com will be a shareholder and the principal technology provider - will be operated as an independent online travel company. It will provide the Japanese consumer with a broad range of online travel products and services, including air, car, hotel and vacation packages. The parties are developing plans to launch the site as soon as the end of 2000, and it will be co-branded with Travelocity.com. Completion of the transaction is subject to execution of definitive agreements.
According to JAL and ANA, 11 other airlines will participate as equity partners in their share of the venture, including Northwest Airlines, United Air Lines and airlines participating in a yet-to-be-named online travel exchange for the Asia-Pacific region except Japan. These airlines are Air New Zealand, Ansett Australia, Asiana Airlines, Cathay Pacific Airways, China Airlines, Malaysia Airlines Systems, Qantas Airways, Royal Brunei Airlines and Singapore Airlines.
“This joint venture continues our growth in the international marketplace, expands our brand presence globally and solidifies our position as the leading online travel company,” said Terrell B. Jones, President and Chief Executive Officer of Travelocity.com. “More than 20 million Japanese are online today, and Internet penetration there is expected to double by 2003. Our arrangement in Japan underscores our international strategy to work with local travel and marketing companies to participate in the explosive growth in online travel demand abroad. We believe a joint venture approach, which combines Travelocity.com’s online travel expertise and innovation with our partners’ understanding of the local marketplace and consumer needs, will benefit us all in driving global e-commerce.”
Travelocity.com (NASDAQ: TVLY), the leading online travel Web site, provides reservations capabilities for 95 percent of all airline seats sold, more than 47,000 hotels, more than 50 car rental companies, and more than 5,000 vacation and cruise packages. This reservations capability is paired with access to a vast database of destination and interest information. To date, Travelocity.com has sold more than 8 million airline tickets and has more than 21 million members.