Restructure folds niche wholesaler Aspac into Go Holidays stablemate

By Graeme Kennedy, Travel writer

Friday 21st June 2002

RICHARD HALL: Popular Aspac Vacations chief executive out

Staff numbers at niche Auckland travel wholesaler Aspac Vacations have been decimated as its Australian parent Pacific International consolidates its operations on both sides of the Tasman.

Among the 36 of the company's 58 workers to go is popular chief executive Richard Hall, who will take a break from the industry before seeking other opportunities.

PIL's new chief operating officer Chris Destrieux, who worked with Mr Hall in management positions at Air New Zealand for many years, said the New Zealand redundancies were due to integration of Aspac's back-end functions such as accounting and IT with those of another PIL New Zealand subsidiary, Go Holidays.

Aspac will become a division of Go. The Australian company acquired the businesses and Auckland Pacific specialist Travel Arrangements in a burst of expansion 18 months ago.

Mr Destrieux said Aspac and Go would operate from the same buildings in Auckland and Christchurch but maintain their separate brands and identities.

"Go is a broad-based, large international brand while Aspac is more short-haul to the Pacific," he said. "Integration makes good business sense so we do not double up on these back-end functions.

"We will be more efficient and by making use of technology we have developed ourselves we will save money - there will be benefits and future growth opportunities from a lower cost base."

PIL was started just two years ago by New Zealander Andrew Chalmers, a professional Sydney rugby league player and Sydney University commerce lecturer, and travel entrepreneur Siva Subranamian.

They bought the small Sydney company Pacific Island Travel Centre and, with Mr Chalmers as financial controller, the business grew quickly in its niche area to acquire Brisbane-based Pacific Unlimited and the three New Zealand agencies.

The PIL shareholding was broadened to include London businessman John Porter, chairman of technology stockholding company i-Spire.

Mr Porter is chairman of PIL which, with i-Spire, owns 100% of Australian software developer Greenstone Technology, which produces the company's systems.

PIL last year recorded sales of about $A250 million, putting the group in Australia's top five Pacific-area companies.

Mr Destrieux said Pacific Unlimited had worked closely with Travel Arrangements in joint buying, branding and marketing and would this year be combined under a new brand, Talpacific Holidays while Australian Aspac Vacations - the former Pacific Island Travel Centre - would be merged into the new branding.

He said Talpacific would be PIL's only brand in Australia while New Zealand would have Aspac Vacations, Go Holidays and Talpacific, the former Travel Arrangements.

The moves come as Travel Arrangements-Talpacific launches a global expansion to take its South Pacific focus into wider markets with plans to open offices in London and Europe.

The company wants to work with established travel partners and set up a South Seas Travel Shop in London to represent all Pacific national tourist offices.

Marketing and sales would be run through the internet from the company's Auckland offices and a new international business development manager is moving to the UK to head the operation.

"This consolidation will make big savings for us but we are also forecasting increased revenues through a more co-ordinated approach to the market," Mr Destrieux said. "We will be in a stronger position to tackle the Australian market in particular."

Mr Destrieux began his travel industry career in Air New Zealand's public affairs office in 1987 before moving into management roles.

He was succeeded by Mr Hall as French Polynesia manager based in Tahiti and went on to become marketing services manager for Asia and Japan, Southeast Asia manager and Australian regional manager until he left the airline in July last year.

He joined PIL as business development manager in November and became chief operating officer in April.

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