PPRuNe Forums - Kiss Flights Update

From the TTG Today

Controversial seat-only operator Kiss Flights, run by former directors of collapsed XL Leisure Group-owned Freedom Flights, was sold this week.

Kiss owner Meridian Aviation sold the fledgling business to Flight Options, a sports tour operator and dynamic packager, based in London, for an undisclosed sum.

Those involved said it will allow “controlled and profitable expansion” of Kiss to fill the gap left by Thomas Cook and Tui’s capacity cuts and the demise of XL.

Former Freedom Flight directors Paul Moss (pictured) and Michael Smith, who run Kiss Flights, will transfer with the business, which moves into new premises in Crawley.

They are expected to be joint general managers of Kiss and not directors of Flight Options.

Meridian managing director Jim Wyatt, brother of XL Leisure Group’s former chief executive Phil, said: “I’d rather move Meridian back to a flight brokerage company. There is a real market for doing deals on aeroplanes and selling off seats."

Wyatt said he had not “touted Kiss Flights around” but approached Flight Options, which had its own thriving seat-only business in the mid-1990s.

As a consequence of the deal, Meridian will relinquish its Atol.

Kiss Flights boss Paul Moss denied the plan was to grow Kiss to the size of Freedom Flights, but said: “It will be good for Kiss to be associated with a reputable, established UK tour operator with a view to providing a quality, reliable seat-only distribution channel to the UK trade.”

Kiss plans to operate only from Manchester and Gatwick this year, but Moss hinted other UK airports and destinations would be added for 2010.

He added that agent support since Kiss’s launch had been “superb”, with bookings “ahead of expectations”.

Flight Options chief operating officer Miles Saward said: “We drifted out of seat-only because the market was saturated with the big four, XL and other players around the turn of the millennium. But now we see an opportunity.

“We will have more aircraft and more capacity. And while the seat-only will be aimed at the trade, we’ll use part of the Kiss brand to enhance our opportunities in the DIY market. This will let us to develop a Kiss Holidays brand for consumers.”

Saward said Flight Options’ financial backer should reassure Kiss critics.

Kiss Flights sale facts

• Meridian Aviation has sold the Kiss Flights brand, domain name and bookings to Flight Options.

• 15-year-old Flight Options has its own 50,000-passenger Atol.

• As part of the deal, Flight Options has signed a three-year broking deal with Meridian to supply a substantial proportion of the Kiss flying commitments, some with Viking Airlines, for which Meridian is the global general sales agent.

• Flight Options is backed by Joe Dwek through Penmarric Ltd. He is understood to be one of the UK’s wealthiest men and a relative of the operator’s managing director Gary Ash.

• Meridian has relinquished its Atol, which the CAA is expected to formally revoke on Friday (January 23).

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