Merger OK boosts Jetset

Shares in Jetset Travelworld have taken off after Australia's competition watchdog said yesterday the tour operator could buy Stella Travel Services.

Jetset shares added 13.5 cents, or 19.71 per cent, to 82 cents.

Australian Competition and Consumer Commission chairman Graeme Samuel said: "After looking very closely at the issues, the ACCC found that the merged Jetset-Stella entity and its member agents are likely to face continued and increasing competition from online travel agents, direct supply by airlines and hotels, and the largest travel retailer in Australia, Flight Centre."

Mr Samuel said the internet had significantly changed how customers searched for the best deals when making travel plans. "In this context, the Jetset-Stella merger is unlikely to substantially lessen competition."

Jetset chairman Tom Dery said his company was confident of the merger proceeding. "We anticipate that the merger will complete on 30 September."

- AAP