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Flight Centre was founded by Graham Turner in 1981 who had previously run a successful budget bus trip company in Europe. Turner retains 18% of Flight Centre. The company grew rapidly, establishing different brands to cater for different parts of the travel market. It owns FCm Travel Solutions for the corporate market, Student Flights, Overseas Working Holidays for the student market and also runs related businesses in the discount holiday organiser Escape Travel, travelthere.com, quickbeds.com, luxury holiday company Travel Associates, retail cruise specialist Cruiseabout and Campus Travel aimed at the academic and university markets. Its website flightcentres.com has been the most popular Australian travel agency website for several years, although it is in fierce competition with webjet.com. It has operations in Australia ($4.4 billion 2004/5 sales, New Zealand ($639 million 2004/5 total transactions, South Africa ($365 million 2004/5 total transactions), United Kingdom ($909 million 2004/5 total transactions), United States ($65 million 2004/5 total transactions) and Canada ($415 million 2004/5 total transactions). After decades of rapid and consistent growth in revenues and profits, Flight Centre flew into trouble in 2005 with its first ever decline in annual profit. For the year ending June 30 2005, on a total revenue of $6.9 billion, its net profit was $67.9 million. Profit announcements for the half year ending December 31 2005, showed a continuing fall in net profits to $33.6 million, a decline of 7.7% on the previous year. It followed Graham Turner's departure from day-to-day operations when he stood aside from being Chief Executive Oficer in 2002, allowing a senior manager Shane Flynn to replace him. He corrected this in July 2005, resuming his previous role as a hands-on manager as Executive Chairman. The one time darling of the Stock Market , normally showing strong profit growth, was punished severely with it being the second worst performing stock in the Australian Stock Exchange's Top 200 companies. Its share price is down 57% from its peak in 2002. This reflected not only concerns about the company's management but also its long-term prospects. The company faces serious challenges, with Disintermediation occurring in the travel industry. In 2006, Qantas announced that it would no longer pay base commissions to travel agents for domestic and New Zealand flights and that it would reduce international commissions from 7% to 5% {Link without Title} . An increasing number of customers are following the lead of many of Flight Centre's suppliers and dealing with them directly through their own websites rather than going through travel agents. Some financial analysts are very concerned about this, with one issuing a sell recommendation on the stock in a report titled ''Flightless Centre.'' EXTERNAL LINKS
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