Galileo International Acquires GDS Business of its Malaysian Distribution Partner

Galileo International and Reliance Pacific Berhad, a leading travel and tourism group in Malaysia, have entered into an agreement that transfers ownership of Reliance Pacific Berhad's GDS business to Galileo. The terms of the transaction were not disclosed.

This agreement enables Galileo and Reliance Pacific Berhad to focus on their respective core businesses in Malaysia. Effective May 1, 2003, Galileo  Malaysia is operating as a wholly owned subsidiary of Galileo International, establishing a new branch office in the centre of the Malaysian capital, Kuala Lumpur, and taking direct responsibility for a market in which Reliance Pacific Berhad has been a distribution partner since 1997. Managing all sales, marketing, support and training, Galileo Malaysia's new office will serve all the travel agency customers previously handled by the distributor.

Reliance Pacific Berhad's Travel Division will continue to be a key Galileo subscriber as -- its single largest customer in Malaysia. With this restructuring, Galileo has increased the number of owned operations in Asia Pacific from seven to eight. Galileo continues to operate in a total of 18 Asia Pacific markets.

Janie Kaung, executive vice president and managing director of Galileo's Asia Pacific region, said: "This acquisition is part of our previously stated 'tuck in' strategy to buy distributors in target markets to enhance service to our customers through a direct relationship and grow Galileo's market presence. Our investment in Malaysia demonstrates our long-term  commitment to this growing travel market and Asia and our firm belief travel demand will be restored despite the current challenges affecting the region.

"We appreciate the efforts of Reliance Pacific Berhad for their development in Malaysia and the solid platform and in-depth understanding of the regional marketplace from which Galileo Malaysia can continue to market and deliver a wide range of travel solutions to our customers. As one of the region's largest and fastest growing travel agency groups in the country, we  are delighted Reliance Pacific Berhad has re-committed to its relationship with Galileo," added Kaung.

Mr. Thong Swe Cheong, Reliance Pacific Berhad's Chief Finance Officer, said: "The decision to restructure the business relationship is a positive one designed to generate greater opportunities for our Travel Division. Firstly, our Travel Division, with its own network of offices and its travel agency franchise chain, is already Galileo's most significant and single largest  subscriber in Malaysia and will continue to grow over the next five years to provide our customers with a wide range of air, car and accommodation reservation services. Secondly, we can now concentrate on stimulating demand for our new travel business model, which aims to stimulate growth from new distribution channels in the B2C (business-to-consumer) and B2B  (business-to-business) markets. Having successfully implemented Malaysia's first travel agency franchise system, the number of franchisees will continue to grow, hence extending our distribution system in and beyond Malaysia."

The new General Manager of Galileo Malaysia is Mr Stewart Sak, who has over 20 years experience in the Asian travel industry having worked with leading travel agencies, and having held posts in the airline and GDS industries. He will be supported by a team of sales, support and service staff.