Carlson Wagonlit Travel and China Air Service extend Joint Venture

Carlson Wagonlit Travel (CWT) today announced its joint venture with China Air Service Ltd. (CAS) has opened offices in Shanghai and Guangzhou.

The new branch offices in Shanghai and Guangzhou will employ approximately 60 people, generate volume in excess of US$30 million and provide professional corporate travel products and services to such companies as BP and General Electric (GE).

"It has been just over 12 months since we celebrated the establishment of Carlson Wagonlit Travel in China with our JV with CAS and the opening of our Beijing location," stated Marshall. "During this period, the JV has made significant progress, in particular, the establishment of a national call center for our client General Electric servicing travellers from 28 cities - a first in the China market; significant business growth in all locations; and the approval to open our branch locations in both Shanghai and Guangzhou," said Mr Geoffrey Marshall, CWT's president, Asia Pacific and Latin America.

Upon announcing the opening of the new Shanghai and Guangzhou locations, Mr. Sun Ji, general manager, China Air Service Ltd. noted, "CAS and CWT have clearly focused on the corporate travel market and are recognized as the leading corporate agency in China. Since its inception, this joint venture has offered proactive and flexible client services consistent with local, regional and global capabilities, enabling us to provide a consolidated global corporate travel solution better than anyone else today." 

Marshall added, "With the opening of our Shanghai and Guangzhou offices, I believe we have a strong opportunity to create further benefit for our customers. As China inexorably and powerfully asserts its economic strengths regionally and globally, this JV offers customers in both China and the rest of the world solutions to the complex puzzle of managing and optimising their travel budgets."

The JV company began trading in Beijing in January 2003, operating under the Carlson Wagonlit Travel trademark. At present, the JV company has some 130 employees throughout the network, and expects to achieve 2004 sales volume budgeted at US$60 million. The JV services now extend to Shanghai and Guangzhou with another 30 cities such as Dalian and Tianjin under the framework of a partner agreement. The JV is 51% owned by CAS, 49% owned by CWT.

Last week CWT and Maritz Travel Company announced a definitive agreement for CWT to purchase Maritz' U.S. corporate travel subsidiary, which has operated under the brand name TQ3 Travel Solutions for the past three years. Completion of the purchase is subject to customary conditions including regulatory approval, which is expected within 90 days.