Nippon Travel Agency Co. and Kinki Nippon Tourist Co. announced Wednesday they have set up a company to prepare for their planned merger in 2003.
Takaaki Minami, chief operating officer and senior executive vice president of Nippon Travel, was appointed as president of the preparatory firm, Tabi Kikaku K.K., and Yasuo Tai, Kinki Nippon vice president, was named vice president.
Tabi Kikaku will draw up a blueprint by around summer 2002 for the merged company, the name of which has yet to be decided, including personnel, operating systems and rationalization of sales networks.
Of the 200 million yen capital for Tabi Kikaku, Nippon Travel and Kinki Nippon put up 10 million yen each, whereas their respective parent companies -- West Japan Railway Co. and Kintetsu Corp. -- will shoulder 90 million yen each. The merged firm will be the nation's second-largest travel agency.