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SIXT ACQUIRES 10 FORMER ADVANTAGE US AIRPORT LOCATIONS

Date of original publication: July 28, 2020

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Kemwel - Less than two months after Advantage Rent a Car filed for bankruptcy in the United States and European competitor Sixt has reportedly obtained 10 of its former airport branches. This is the latest move from the German powerhouse as it continues its U.S. expansion in the midst of uncharted territories surrounding COVID-19. After all, dwindling market shares for some mean higher yields for others.

“The current circumstances caused by the coronavirus crisis and the insolvency of the car rental company Advantage offered Sixt a unique opportunity to acquire the 10 highly coveted airport concessions at an attractive price,” said Sixt in a recent statement, certainly jumping on an opportunity.

Approved on July 1 by the Bankruptcy Court in Delaware, Sixt will start operating at the following U.S. locations beginning July 2020:

  • Boston - Logan Airport (BOS)
  • New York - LaGuardia Airport (LGA) and John F. Keddy Airport (JFK)
  • Newark - Newark Liberty International Airport (EWR)
  • Houston - George Bush Intercontinental Airport (IAH)

This news also entails "in-service desks at the following locations:

  • Denver - Denver International Airport (DEN)
  • Las Vegas - McCarran International Airport (LAS)
  • Orlando - Orlando International Airport (MCO)
  • Maui - Kahului International Airport (OGG)
  • Honolulu - Daniel K. Inouye International Airport (HNL)

Seeing that the U.S. is Sixt’s largest growth potential market, these 10 new U.S. airport locations could possibly reach an accumulative volume of US$3.4 billion. In other words, total potential earnings may be worth more than the entire Germany car rental industry altogether. For many, this truly showcasing how lucrative this business move could be in the long run for Europe’s second-largest car rental company.

According to a Sixt managing board member, Alexander Sixt, the corporation could be reaching more customers than ever before. At the same time, this strategic move strives to lay the foundation for future success in a much anticipated post-coronavirus world.

“With this highly pragmatic transaction, we have taken a very decisive strategic step towards building a nationwide network in the world’s largest car rental market,” Sixt said. “The acquisition of the concessions for all New York airports as well as for Boston, Orlando and Las Vegas, among others, lays the foundation for substantial growth after the crisis.”

Some may call this wishful thinking considering that dozens of countries have barred the United States and other "high-risk" nation from entering based on their respective circumstances of coronavirus. Depending on how soon the states can curb infection rates may determined how successful Sixt is within the coming months.

At the same time, domestic travel within the country has continued far in summer 2020 with many choosing driving over flying. Safe to say that this could go really either way for Sixt!