A GIANT new holiday firm is to be based in Sussex following a £1.4 billion merger between First Choice and Swiss company Kuoni Travel.

The news was welcomed yesterday, with First Choice claiming the move would safeguard its 700-strong workforce and could lead to more jobs.

The headquarters of the new joint corporation, Kuoni Holdings, will be based in First Choice's offices in Crawley.

A spokeswoman told the Argus: "There won't be any job losses.

"There's been quite a bit of anxiety about all the rumours that have been going round but when this was announced it was greeted very positively in all our Sussex offices.

"In the UK, Kuoni is at the premium end of the market, whereas we bring in the mass end of the market.

"This gives us more scope for flying on our aircraft and it means there's a very real possibility of increasing the size of our fleet."

She added: "Hopefully, we will be able to increase the number of premium passengers we carry. This means premium passengers paying premium rates.

"Obviously, if we end up increasing the size of our fleet, this could well involve extra jobs in the longer term."

First Choice is based in Crawley and employs around 500 staff at its London Road headquarters and a further 200 elsewhere in Sussex.

Last year, it took over Haywards Heath holiday company Unijet and a year before that it absorbed Skibound of Brighton.

It also owns charter airline Air 2000 and Viking Aviation, one of the UK's leading airline seat brokers.

Once the deal has gone through, Kuoni's owners will take 53 per cent of the new company's combined businesses and First Choice shareholders will hold 47 per cent.

Shares will be traded in London and Switzerland.

The First Choice group unveiled profits last year hhich had more than tripled to £50 million from £15.4 million.

Sales up

Kuoni, which yesterday announced its sales for 1998 were up 25.6 per cent to £2.25 billion, is one of the top European travel businesses providing long haul holidays in most European countries and is a leading short haul provider.

It operates a charter airline and provides tour services. It also owns one of the largest travel agency chains in Switzerland and is a major player in the German market.

The combined business will be one of the largest travel firms in Europe.

Last week it was rumoured that German travel firm Preussag was preparing an offer for First Choice.

Mike Briggs, chairman of Crawley Chamber of Commerce's promotions committee, said he hoped First Choice's merger with a long haul flight operator would mark a further step forward.

He said: "I would have thought this is a positive move.

"I am surprised by Kuoni's involvement though, because there was some sabre-rattling a week or so ago and they weren't one of the companies involved at the time".

Roger Lakin, news editor of Holiday Which? magazine, was not surprised at the big money merger.

But in a recent readers' poll of companies, First Choice had been voted one of the worst for quality of service and Kouni among those ranked "second best".

Mr Lakin said: "We are concerned with the effect this merger will have on Kouni."

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