The Flight Centre Travel Group Ltd (ASX: FLT) share price is edging lower on Thursday morning.
At the time of writing, the travel agent's shares are down 1% to $16.75.
Why is the Flight Centre share price edging lower?
Investors have been selling down the Flight Centre share price despite the release of a positive announcement. This may be due to broad market weakness today.
In respect to the announcement, Flight Centre has revealed plans to launch its leading FCM travel management business in Japan via a joint venture (JV) with Tokyo-based NSF Engagement Corporation.
Given that the Japanese market is the world's fourth largest corporate travel market, this is a sizeable opportunity for the company. It also means the FCM network now stretches to 97 counties.
Flight Centre's Managing Director, Graham Turner, believes the expansion into Japan is significant.
He said: "Japan is a key corporate market because of its size and importance within the global economy as a business hub for multi-national companies. By securing an equity position in this crucial market, we will enhance our ability to win new local, regional and multi-national accounts, while also gaining greater control over and enhancing the service we provide to our existing customers with operations in Japan."
"We believe this will become a very significant business and a valuable addition to our Asian network, which also includes businesses in China including SAR Hong Kong, India Singapore and Malaysia," he added.
The joint venture
The release explains that FCM Japan will operate from January 2022 and will be headed by general manager Kenichi Shiraishi. He is currently the leader of NSF Engagement's corporate travel business.
NSF Engagement Corporation's CEO and President, Shigeru Hiromatsu, commented: "We see considerable synergy between NSF Engagement Corporation and FCM.
"FCM's unconventional, innovative and flexible DNA resonates deeply with NSF Engagement Corporation's belief that it is possible to use New Standards for Engagement to break through conventional concepts through technological capabilities while building a strong business with sustainable growth."
"We are excited to partner with FCM to leverage the business's technology and global expertise to facilitate expansion and penetrate the high potential Japanese business travel sector," he added.
The Flight Centre share price is up 35% over the last 12 months.
