The Association of Corporate Travel Executives today announced the "outline of the broad terms" of a proposed merger with the National Business Travel Association, following a unanimous vote by ACTE's board of directors to reopen merger negotiations after previous attempts by some NBTA and ACTE board members.
"The marketplace wants and needs a combination of the best of both organizations, best practices and deliverables," ACTE president Richard Crum said in a statement. "This will not be accomplished by the takeover of one association by another, but rather a true merging of ideas, philosophies and memberships—all committed to creating a new organization."
NBTA's leadership said they did not know of any new merger proposal at the time the statement was released. NBTA president and CEO Kevin Maguire said Crum then sent a correspondence to NBTA officials notifying them of the proposal.
The NBTA negotiating team of Maguire, NBTA vice president and HSBC vice president of travel services Michael Lyons, NBTA Allied Leadership Council president and of Dav El Chauffeured Transportation Network president and CEO Scott Solombrino and board member and Bose manager of corporate travel Gary Polito will review the proposal tomorrow.
According to the statement issued by ACTE, key points that the board believes will gain the required 51 percent merger-approval vote of ACTE membership include a co-branding for the next two years followed by a new name, a new interim board with five members from ACTE's and NBTA's current boards for two years with new elections to be held among the joint membership with non-U.S. board seats guaranteed, a new NBTA president and executive director to be found by NBTA to lead the combined organization, an educational program based on the "ACTE philosophy" and that all 2009 programming remains as planned with NBTA being invited partner in the ACTE events.
"The new merger proposal represents the input of ACTE's board of directors, many of the association's sponsors and a number of its international members and is being presented openly for industry consideration," the statement said.
NBTA president and CEO Kevin Maguire earlier today, prior to ACTE's announcement, told
Business Travel News, "Our position now is the door is still open. If somebody wants to talk, that is fine. However, we are not going to sit and wait for somebody on the ACTE side to move forward with a new idea. If they want to come to us, they are more than welcome to talk. NBTA has its own global objectives, ideas and educational programs we want to work with to expand both domestically and internationally. The train is leaving the station. If they want to jump on, they are welcome to come aboard, but we're not going to sit there and wonder why."
Merger efforts initiated this year by a handful of ACTE and NBTA board members came to a halt in June when negotiators from both sides determined they would not gain the required two-thirds vote from ACTE's board
(BTNonline, June 22). In the previous proposal, ACTE would contribute five additional members to the existing NBTA board, with three of ACTE's board members representing ACTE regions outside the United States.
Since then, several ACTE board members, including president Doug Weeks, treasurer Brad Seitz and treasurer-elect Mary Ellen George, stepped down from their posts, while ACTE forged a "strategic alliance" with the Professional Convention Management Association and committed to remaining a stand-alone organization. However, several corporate travel suppliers—including Continental Airlines, Delta Air Lines, BCD Travel and Travel and Transport—have asked the boards of both organizations to reconsider.
"Without this merger between NBTA and ACTE, I feel that suppliers and members will be forced to significantly cut their financial support to both organizations. This outcome will lead to the weakening of both groups rather than creating one financially strong travel organization," Travel and Transport president and CEO Bill Tech wrote in a letter to ACTE.
In a letter sent to both boards, BCD Travel global president and COO John Snyder wrote, "Due to current economic conditions and other factors, BCD Travel is no longer in a position to support both organizations as we have in the past. As a result, we will be forced to reduce our investment in both organizations. Careful consideration has been given as we take this position. We anticipate that other NBTA and ACTE members, both corporate and supplier, will take similar actions to make the message clear—one global travel association is best for all."