Christchurch-based Red Bus is doubling the size of it’s Red Travel fleet by purchasing charter and tourism company Aaron Travel for an undisclosed amount.
Projected high tourism growth is the key reason for the acquisition says Red Bus which established Red Travel two years ago as its charter and tourism arm.
Red Travel now has approximately 25 vehicles ranging in size from 10-passenger minibusses to 51-seat luxury passenger tour coaches.
The Red Bus, chief executive officer Paul McNoe, says that the company has been looking to expand its focus and with the strong growth in tourism this was a good strategic fit for the enterprise.
“Aaron Travel is a well-established Christchurch company, having been in the market for 13 years,” says McNoe.
“It has a very solid reputation and strong connections with the expanding Taiwanese and Chinese markets. Bookings are strong for the new season,” he says.
All Aaron Travel staff will stay and Stephen and Candy Ni, who owned Aaron Travel, will stay involved with Red Travel for up to two years.
“We were looking to expand organically and had three new coaches ordered for this season. They are still coming, with the possibility of a fourth. With this expansion we may need to look at employing new staff as the season moves into full swing,” says McNoe.
The synergies between the two firms are high with Aaron Travel specialising in tours, transfers, and charters throughout the South Island with Red Travel influential in arranging transfers for corporate events, special events, sport and tour groups with a specialty being the ability to provide shuttles to move large groups between venues.
“Red Bus has been looking to expand our base with the likes of the Akaroa Shuttle, Rebuild Tour, and charter work. This acquisition follows that philosophy, but on a larger scale,” says McNoe.
