New Galileo Office Opens in Kuala Lumpur
Hong Kong/Kuala Lumpur -- May 2, 2003 -- Galileo International, a leading
global distribution services company and subsidiary of Cendant Corp. (NYSE:
CD), and Reliance Pacific Berhad, the leading travel and tourism group in
Malaysia, today announced they 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, and the purchase price is not material to
Cendant.
This agreement enables Galileo and Reliance Pacific Berhad to focus on
their respective core businesses in Malaysia. Galileo Malaysia will now
operate as a wholly owned subsidiary of Galileo International, establishing a
new office in the centre of the Malaysian capital Kuala Lumpur, and taking
direct responsibility for a market previously managed by Reliance Pacific
Berhad since 1997. With responsibility for sales, marketing, support and
training, Galileo Malaysia's new office will serve 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
the Asia-Pacific market 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 business-to-consumer and 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 in the region. Mr. Sak held posts in the airline and
GDS industries. He will be supported by a team of sales, support and service
staff.
About Galileo International
Galileo International is a global technology leader. Its core business is
providing electronic global distribution services for the travel industry
through its computerised reservation systems, leading-edge products and
innovative Internet-based solutions. Galileo is a value-added distributor of
travel inventory dedicated to supporting its travel supplier, agency and
corporate customers and, through them, expanding traveler choice. A
subsidiary of Cendant Corporation, Galileo is part of Cendant's Travel
Distribution Services Division and is headquartered in Parsippany, New Jersey,
USA, with offices worldwide. Visit http://www.galileo.com.
About Reliance Pacific Berhad
Reliance Pacific Berhad is a publicly listed investment holding company
predominantly involved in tourism, travel and hospitality businesses. In
1993, it became the first travel company to be listed on the Kuala Lumpur
Stock Exchange. Today, it has three core business divisions: Travel; Hotel
Management; and Resort Development. Its Travel Division started business
operations on November 1, 1969, specialising in fulfillment, procurement and
reselling, including wholesaling and retailing tourism, travel and hospitality
products. With the widest travel network of officers, franchisees and
distributors in Malaysia and Singapore, the Travel Division's presence
internationally is also significant with representative offices and
wholesalers spread over 30 countries around the world.
About Cendant's Travel Distribution Services Division
Cendant's Travel Distribution Services Division is one of the world's
largest and most geographically diverse collections of travel distribution
businesses. The division, employing some 5,000 people in more than 110
countries, includes: Galileo, a leading global distribution system (GDS)
serving more than 47,000 travel agencies and over 51,000 hotels; hotel
distribution and services businesses (Trust, THOR, WizCom); leading travel
agencies, including Cheap Tickets and Lodging.com; an airline market
intelligence company; and Highwire, a corporate travel booking company.
For More Information:
Stuart Ridsdale Dawn Lyon
Galileo Asia Galileo United States
+ (852) 2821 2301 (973) 496-5870
stuart.ridsdale@galileo.com TDS.corpcom@cendant.com
NOTES TO EDITORS:
GALILEO ASIA PACIFIC OVERVIEW
Galileo International's Asia Pacific operations are centred on 18 key
markets that together represent the world's fastest growing region for travel.
As elsewhere in the world, Galileo in Asia-Pacific operates with a combination
of owned and licensed distributor operations and serves both downstream
customers (travel agencies) and upstream customers (vendors such as airlines,
hotels and car rental companies). Across the Asia Pacific region, we support
the top multinational travel agencies, including American Express, Rosenbluth
International, Carlson Wagonlit Travel, Business Travel International and
Flight Centres.
As part of Galileo's International Markets Division, Galileo's Asia-
Pacific network comprises eight wholly owned offices with the remaining 10
operating as distribution partners. This network services customers using
Galileo's global range of products and services as well as locally developed
solutions that address the distinct needs of particular markets.
Galileo started its Asia-Pacific operations in Hong Kong, the Philippines,
Singapore and Taiwan in the mid 1980s. The Asia-Pacific regional headquarters
for Galileo International was established in Hong Kong in 1994, and is headed
by Janie Kaung, executive vice president & managing director. Today, Galileo
is the largest GDS in the Asia Pacific region.
OWNED OPERATIONS (alphabetical order)
Galileo China
Galileo International opened a representative office in Beijing in 1996,
and concurrently announced the highest level of connectivity with China's
major airlines. Galileo has a strong relationship with China's Travelsky
reservation system, and offers the strength of its global network to increase
efficiency to China's travel community. In 2002, Galileo added [use specific
number if possible] airlines onto its link with Travelsky to become their
largest provider of airlink functionality in Mainland China, with 150 non-
domestic airlines now booked through Galileo.
Galileo Hong Kong
Galileo Hong Kong is one of the major GDSs in the market and has built
close relationships with travel agencies serving the business, leisure, e-
commerce and wholesale sectors.
Galileo Malaysia
Galileo Malaysia commenced operations in 1997 and has an office in Kuala
Lumpur. The Malaysian operation came under the direct ownership of Galileo on
May 1, 2003.
Galileo Philippines
Galileo Philippines provides automation and training services for travel
agencies as well as shipping companies moving seamen and labour traffic around
the world.
Galileo Singapore
Today, many of the most influential and important corporate travel agents
in Singapore have elected to use Galileo. Galileo Singapore's support of
multinational corporate agencies, as well as the company's market-leading
support of local agents such as Anglo French Travel and Singa China, is
recognized across this city state.
Galileo Southern Cross (Australia and New Zealand)
With headquarters in Sydney, Galileo Southern Cross distributes the
Galileo computer reservation system to travel agency locations across
Australia, New Zealand and the South Pacific. Additionally, Galileo Southern
Cross provides sophisticated client management and accounting software
products to the travel community. Galileo operates a regional Service Centre
in Sydney, training facilities in seven offices in major centres in Australia
and New Zealand, and a team of mobile support executives. The clear market
leader in Australia, Galileo Southern Cross automates more travel agencies
than the other travel solution distributors combined.
Galileo Taiwan
Galileo operates three offices in Taiwan, with its main location in Taipei
and additional premises in Taichung and Kaohsiung. Galileo Taiwan has the
largest share of the travel agency e-commerce market in Taiwan.
LICENSED DISTRIBUTORS (alphabetical order)
Galileo Bangladesh
Galileo Bangladesh started commercial operations in March 2000. The head
office is based in the capital, Dhaka. Two additional branches are in
Chittagong and Sylhet. Galileo Bangladesh has quickly moved to become a major
player in travel in this important developing region.
Galileo India
Galileo India commenced operations in 1994, with headquarters based in New
Delhi. Galileo India has 18 dedicated offices providing customer support
services to subscribers located in over 90 Indian cities. Dedicated customer
training centres are located in the six major metropolitan centres of Delhi,
Mumbai, Bangalore, Chennai, Hyderabad and Calcutta. Galileo is the main
reservations and automation supplier to thousands of Indian travel agencies,
with a suite of locally customised products.
Galileo Indonesia
Galileo Indonesia commenced operations in mid 1998, and operates from its
head office in Jakarta, with support offices in Surabaya and Medan.
Galileo Japan
Galileo Japan was launched in 1986, offering services throughout Japan
from offices in Tokyo and Osaka. Many highly acclaimed mega travel sites in
Japan have chosen the Galileo system for their business.
Galileo Korea
Inaugurated in 1999, Galileo Korea has an office in Seoul and a support
office in Busan. Galileo Korea is on the leading edge of providing travel and
e-commerce solutions for Korea's travel community.
Galileo Pakistan
Galileo Pakistan started operations in September 1997. With headquarters
in Karachi, Galileo Pakistan's distribution network now covers 30 cities with
support offices in Karachi, Lahore, Islamabad, Peshawar, Sialkot, Multan and
Faisalabad.
Galileo Papua New Guinea
The only GDS operating in this market, Galileo has been in Papua New
Guinea since early 1998.
Galileo Sri Lanka
Galileo Sri Lanka commenced business in 1999, and is currently a leading
GDS in the local market.
Galileo Thailand
Galileo Thailand was formed in October 1996, and now serves travel agents
throughout the country from its head office in Bangkok and branch offices in
Chiang Mai, Hat Yai, Khon Kaen, Pattaya, Phuket and Samui.
Galileo Vietnam
Galileo announced the opening of offices in Ho Chi Minh City and Hanoi in
January 2003. Galileo is supporting expansion of travel automation to a wider
number of travel agencies throughout Vietnam.
SOURCE Galileo International
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