In 2012 the Hertz Dollar Thrifty deal provided me with literally 100′s of posts as the deal, which was became part soap opera, was scrutinised by the FTC. The issue everyone had, including myself, was that by allowing this deal to go through it would mean that just 3 companies controlled 96% of the market.
What the FTC decided was that Hertz would first have to sell off their low cost brand, Advantage Rent A Car which they’d purchased the year before, the FTC wanted this brand to be sold off to help kick start another company to compete with the likes of Alamo, Budget and Dollar.
Advantage Rent A Car was sold off to the Franchise Services of North America who own brands such a U-Save and Rent A Wreck. The Hertz Dollar Thrifty deal went through and we all sat back to see what would happen.
What has actually happened is exactly what a lot of people feared. Advantage Rent A Car filled for bankruptcy and it looks like the only option is for someone to purchase them.
Who might buy them?
Back in June, Richard Branson penned a letter enquiring about the option to purchase Advantage Rent A Car, I would imagine if he was interested we’d see a pretty quick rebrand to Virgin Car Rental. This acquisition makes some sense as it would tie in nicely with their other travel interests.
Sixt Rent A Car the new kids on the U.S. block and could possibly do with some of the key airport locations that Advantage currently have.
Hertz, not sure legally where this stands but I’ve heard a few rumblings that Hertz may have enquired about buying back their brand. As some of the debt that Advantage hold is actually owed to Hertz this might place them in pole position but surely the FTC would block this?
Whatever happens I’m hoping that the Advantage brand lives to fight another day and helps to add more competition in the market place.
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