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Archive for May, 2010

Avis faces tough battle with Hertz for Dollar Thrifty

Monday, May 31st, 2010

As analysts wait to see what the next move will be in the battle for Dollar Thrifty, many think that it is highly unlikely that another bidder will put cash on the table. Currently, Hertz has made its offer for the group and is waiting to see if Avis can come up with something better.

There is the slim possibility that Enterprise might step in, but with its already dominant share of the rental market, it is unlikely that it would gain anti-trust approval for such a move. Neil Abrams of Abrams Consulting Group said that another unlikely scenario would be for one of the larger European companies, such as Sixt or Europcar, to step in with a bid.

Abrams added that he did not think anyone wanted to get into a bidding war with Avis and Hertz at the moment. He went on to say that they were likely to be the only two at the party unless there was a dramatic change of circumstances.

Hertz has already offered $940 million for Dollar Thrifty, and is viewed by many as the frontrunner in the race. Fund manager of Touchstone Mid Cap Value Fund, Peter Zuger, thinks that Hertz has done the clever thing by going in with a low bid and waiting to see what Avis can do. Hertz will then have to opportunity to reassess the situation and put in a higher counter offer.

It is believed that where Hertz is offering 80 per cent cash and 20 per cent stock for Dollar Thrifty, Avis may make a predominantly stock offer. This could cause problems as the value of Avis stock has dropped by 27 per cent since it announced its intentions of putting in a bid for Dollar Thrifty.

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Motorists out of pocket because of under-inflated tyres

Friday, May 28th, 2010

UK motorists are losing money because they do not keep the tyres on their cars adequately inflated, according to a recent survey. Tyre manufacturer, Michelin, claims that under inflated tyres are forcing the British public to spend around £440 million each year in unnecessary costs. The Environmental Transport Association said that as well as the damage being done to people’s pockets, the cost to the environment might be considerably worse.

12 megatonnes of CO2 is introduced to the atmosphere every year around the globe by motorists who have neglected to pump up their tyres, according to the research. Failing to fill tyres with an adequate amount of air also reduces a cars ability to react safely whilst being driven at speed, as well as reducing a vehicle’s fuel efficiency.

It is estimated that fuel efficiency would be improved by around 2 per cent if tyres were correctly inflated, and the life of the tyre itself would be lengthened considerably.

European laws may soon require car manufacturers to implement monitoring systems for tyre pressure into their vehicles. The new system, known as the tyre pressure monitoring system, or TPMS, for short, could soon be on every European driver’s dashboard.

MAXAIR, a US based company, has come up with a system whereby a vehicle’s tyre pressure is constantly monitored by an Automatic Tyre Monitoring and Inflation process which will inject air into a deflating tyre automatically when it begins to lose pressure. In the case of a slow puncture, the system will introduce a steady stream of compressed air until the tyre is fixed.

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Hertz and Avis step up fight for Dollar Thrifty

Thursday, May 27th, 2010

The battle for Dollar Thrifty is likely to be a lengthy one between the second largest rental firm in the US, Avis, and the nations third largest, Hertz. Last month Hertz offered $1.2 billion for the budget brand.

Avis then stepped in with the announcement that it would also like to buy Dollar Thrifty, and although no formal offer has been made, Avis said that it is likely to offer substantially more than Hertz’s $41 per share deal. Dollar Thrifty’s share price is currently at $45.45.

However, money is not the only concern. Although experts predict that Dollar Thrifty will go for the highest offer, both Avis and Hertz still need to persuade anti-trust regulators that they will not be harming competition by purchasing the budget car hire firm.

Hertz is arguing that because it is a pricier, more premium brand than Dollar Thrifty, there would be no conflict of interests, as Dollar does not primarily target the business market. Avis are likely to say that this is not a strong argument, because Hertz is known to target budget customers by offering cheap deals on the web.

Both firms have submitted their applications for takeover approval with the Federal Trade Commission. McDermott, Will & Emery antitrust lawyer, David Marx, said that regulators would be looking at whether there was the potential for prices to rise after a merger. If this looks like being the case, then assets may need to be divested, or a merger could be blocked on the grounds that it would be unfair for competition.

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Sunderland campaigner loses controlled parking zone battle

Wednesday, May 26th, 2010

A Sunderland man, campaigning against the city’s controlled parking zone, and asking that 39 penalty charge notices against him be ruled unenforceable, is considering taking his case to the Court of Appeals after a High Court judge ruled it devoid of merit.

Neil Herron claims that Sunderland’s restricted zone is far too large and complicated for motorists to understand. He argues that unless every part of the road within the zone is clearly marked with paint, indicating what is or is not allowed, the whole area becomes ineffective.

Mr Justice Bean did not agree. He said that the wording of the regulation did not have to be stuck to so rigidly as to produce an absurd result. Mr Herron said that the court’s decision would mean that local authorities would be able to continue making money out of motorists who are confused by the complicated rules.

Head of transport policy at the AA, Paul Watters, said that councils across the country needed to provide more clarity to motorists when implementing new parking restrictions. Sunderland City Council’s executive director of city services, Ron Odunaiya, said that the courts ruling proved that the controlled parking zone in Sunderland was lawful. He added that the City Council believed its controlled parking policy to be firm and fair.

Mr Herron has already spent £100,000 campaigning to improve the position of the country’s motorists who he says are being treated like they are second class citizens. His latest campaign is likely to set him back a further £20,000 in court costs.

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Top tips from Carrentals.co.uk ahead of the World Cup

Tuesday, May 25th, 2010

Carrentals.co.uk is one of the world’s leading car rental price comparison sites, and managing director, Gareth Robinson, has issued a few simple pieces of advice for all those travelling to the World Cup finals in South Africa. It is essential for all those planning to travel to have at least six months remaining on their passport, anything less, and it will be a taxi ride home to watch the games on television.

It is also a good idea to take out sufficient travel insurance in case something goes wrong. A trip to the doctor to get any required inoculations is also an excellent idea. Booking accommodation before arriving in South Africa is also a necessity, as camping during South Africa’s winter, will be a very chilly experience.

Carrying a large amount of cash or any valuables in South Africa is not a good idea, as pick pockets and thieves are likely to be on the lookout for tourists. Security at the games is bound to be tight, so turning up with plenty of time to spare is a good way to avoid disappointment.

Hiring a car rental is a good way of ensuring safe and easy travel to all the fixtures, but for those who choose public transport, it is a good idea to tell someone where you are going, and to only use registered taxis.

For those who have already booked a car hire vehicle, it is a good idea to make sure you remember where it is parked, and to have tipped the car park attendant in advance, to make sure that it is where you parked it when you return from a game.

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Avis scoops top awards for business service in the Middle East

Monday, May 24th, 2010

Car hire industry leaders, Avis, has managed to pick up two prestigious awards for its exceptional service to business customers in the Middle East. Subscribers to Business Traveller Magazine voted the car hire provider Best Car Rental Provider for the Middle East, an award presented to Avis at the magazine’s Business Traveller Awards.

The car hire leaders also managed to scoop the award for the Middle East’s Leading Business Car Rental Company at the World Travel Awards 2010, an award Avis also clinched in 2009. The awards ceremonies are seen as two of the most important in the travel industry’s calendar.

Manager, Avis Oman, E Sriram, said that everyone involved in the running of Avis in the Middle East was thrilled about being awarded two of the industry’s top awards. Mr Sriram added that Avis was constantly trying to find better ways of serving its business customers, as it realised that travelling on business could sometimes be a stressful experience. He went on to say that it was important to Avis to offer business travellers, whether they are travelling from within the Middle East or from countries outside the region, the best possible service.

Avis operates from more than 2,800 across four continents, serving over 8 million customers every year. Mr Sriram said that the accolades reflected the firm’s ability to supply a faster, more efficient premium car hire service to its customers.

As well as responding to its business customer’s demand for efficiency, Mr Sriram said that Avis also wanted to offer simplicity, so that all Avis customers would enjoy their time in the Middle East.

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Holiday Autos advises booking car hire early

Friday, May 21st, 2010

Car hire brokers Holiday Autos has announced that it will be increasing the size of its fleet of rental vehicles by 20 per cent in South Africa ahead of the World Cup. The company said the move was necessary if it was to keep up with the high demand for cars from foreign and domestic visitors.

Larger vehicles such as minivans, SUVs and mini buses are already in short supply, and visitors who have not yet finalised their rental requirements, may end up being disappointed. Some smaller vehicles, like the Renault Clio or Ford Focus, are still available, and prices are currently starting at around £140 for a seven-day hire.

Holiday Autos managing director, Stuart Nassos, said that a shortage of available hire vehicles in key holiday destinations was going to make hiring a car at the last minute more difficult, and possibly more expensive, than usual.

Nassos added that at peak holiday times and during events like the World Cup, a shortage of vehicles always became an issue. He went on to say that since the economic downturn, rental firms have not been able to obtain the funding needed to increase their depleted fleets, and so the issue has become worse.

This means that instead of treating car hire as an afterthought, it should be dealt with early on in the holiday booking process to avoid disappointment. Holiday Autos said that they are currently working with their partners to ensure that football fans manage to get hold of an appropriate vehicle at a reasonable price.

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Sixt Trade launched as vehicle hire solution for SMEs

Thursday, May 20th, 2010

Car hire firm Sixt has launched a new product, which aims to give small and medium-sized business enterprises in the London area, the advantages of a corporate account, without the paperwork. At the beginning of the month, Sixt Trade was launched to allow a growing number of businesses access to vehicles, without the hassle of actually opening an account.

Sixt’s commercial director, Per Voegerl, said that Sixt Trade would allow SME businesses access to the best rates Sixt had to offer, as well as an improved online booking service, the option of having vehicles delivered and collected, and the chance to earn rewards, such as free rental days.

Voegerl added that the product had been specifically tailored to those businesses which needed easy access to a reliable rental service, but did not want to get embroiled in contracts and paperwork. The service even offers customers the ability to pay for their vehicle hire on a credit card belonging to a third party.

Businesses which use the new Sixt Trade service will be able to earn rewards on their Sixt Trade loyalty card. One of the main perks being offered is the chance to earn a free day’s vehicle rental for every nine days of paid rental. Sixt said that this will help many small and medium sized businesses make significant savings on their annual rental bills.

Sixt Trade is being offered to customers at all 16 of the firm’s London based branches. Companies are able to book vehicles on the Sixt website at any time of the day or night.

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Thrifty Car Rental offers Emirates NBD customers cheap deals

Wednesday, May 19th, 2010

Thrifty Car Rental in the United Arab Emirates has announced that it will be teaming up with Emirates NBD to offer special rates to the bank’s credit card holders. The subsidised rates will be offered to Emirates NBD customers in locations throughout the UAE from now until April 2011. The offer could be the first of many, as Thrifty continues to look for other creditable partners in the region.

Talking about the new offer, General Manager, Thrifty Car Rental, United Arab Emirates, Rahul Sing, said the company had noticed that customers renting vehicles in that last few months had been seeking out deals which offered special rates. He added that by teaming up with Emirates NBD, Thrifty had found a partner with a large client base, which already offered its card holders a number of attractive offers.

Deputy Head Group Marketing, Emirates NBD, Saif Al Mansoori, said that the opportunity to ease the financial pressures of its customers by offering cheap deals on car hire through Thrifty was a welcome one. He added that it was another way in which the bank could reward the loyalty of its customers.

Al Mansoori went on to say that the new offer could reduce a customer’s hire vehicle by half over the next year, and that he was sure Emirates NBD customers would welcome the perk.

Thrifty Car Rental is owned by the Dollar Thrifty Automotive Group, and is the UAE’s largest car hire firm. The operation is that largest Dollar Thrifty franchise outside the US, and runs a fleet of more than 14,000 vehicles.

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Top tips from Avis on how to avoid being the victim of car crime

Tuesday, May 18th, 2010

This week is National Car Crime Awareness Week, and Avis UK is doing its bit by publishing its top five tips for motorists on how to avoid becoming the victim of car crime. The event has been organised by The Association of Chief Police Officer’s Vehicle Crime Intelligence Service, and is aimed at educating drivers about the variety of criminal activities which are linked to car crime, whilst also teaching them the best ways to avoid it.

UK Security Manager for Avis UK, Robert Donovan, a former policeman, said that during his time with the force he witnessed countless car crimes which could so easily have been avoided through the use of common sense. He added that his most important piece of advice to the country’s drivers would be to remain alert at all times and avoid becoming complacent.

Avis has listed its tips from one to five. At number one is the all too obvious point that drivers, when they are not with their vehicle, should make sure that it is securely locked at all times. Number two is a piece of advice for drivers who like their gadgets. Systems such as sat nav should never be left on display when the vehicle is unattended.

Avis UK’s third tip was that people should never leave anything of any value in the vehicle when it is not being used. Avis points out, that criminals are now able to scan cars for electrical equipment, even if it is locked away with the power turned off.

Tip number four is to never park a car in an unsafe area and tip number five is to keep the car locked, even when driving. An unlocked car, stuck in traffic, is still attractive to some criminals.

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