Australian online travel company, Travel.com.au (TVL) has announced a rights issue looking to raise $1.6 million extra capital to “provide a buffer in the event of a downturn or external shock” in the industry, according to Chairman Roger Sharp.

The extra earnings are also expected to cover the move of lastminute.com operations from the UK to Australia.

The company reported a loss of $144,429 in the six months ending December 31 2005, and said $540,146 was affected by “impairment of receivables” from lastminute.com.au’s operational systems which are based in the UK.

Travel.com.au remains to perform below budget, while the lastminute site remains as the company’s main driver for growth.

Source: Travel Blackboard