(IFN) Iceland?s Avion acquires French internet travel operator Crystal

Reykjavik (IFN) Star Airlines, a subsidiary of Reykjavik-listed transport company Avion Group, has agreed to acquire French travel operator Crystal, the company said on Friday (June 9).

Crystal is a wholesale internet travel operator and has in a short time secured a leading position in the French market, Avion Group said in a statement.

The acquisition price is confidential, Avion Group said.

Avion Group reported a turnover of EUR14 million in 2005, and pre-tax profits were EUR750.000. Turnover in 2006 is expected to be in the region of EUR16 million, with a pre-tax profit of EUR1 million.

Crystal had 32.000 passenger sales last year, which is three times as much as in 2005, and in 2006 the figure is expected to reach 38.000. More increases in passenger numbers are predicted as internet travel sales are growing rapidly, Avion Group said.

Among Crystal's destinations are Croatia, Morocco, Mexico, Cuba, Brazil, The Dominican Republic and Tunis.

Crystal's main clients are Lastminute.com, Opodo, Expedia, and Kavel.

Crystal, which was founded in august 2003, will support Star Airlines' current operations in France, Avion Group said.

Star Airlines, which is the second largest charter-flight company in France, was acquired by Avion Group last February to reinforce Avion's Charter & Leisure sector outside of Britain.

Star Airlines transported over 900.000 passengers to over 20 destinations last year. After the acquisition Avion Group will transport over seven million passengers a year.

?We've managed travel wholesales in Britain through the Excel Airwaves Group with great success. We plan to build a similar business model here in France and the acquisition is a part of that plan." Avion Group chairman Magnus Thorsteinsson said.

?The Crystal acquisition further increases the growth opportunities in France and constitutes of a fine addition to Star Airlines, France's second largest charter-flight company, which Avion Group acquired earlier this year. The company gives us access to a large market but France's population is around 60 million," Thorsteinsson added.

(END)

Icelandic Financial News (IFN) is available on Factiva, a joint venture between Reuters and Dow Jones Newswires, FT.COM, LexisNexis, Comtex, Gale and Thomson via the Nordic Business Report.