Corporate Travel Management (CTM) has dismissed its chief executive for Europe and the UK, Michael Healy, following the company’s recent disclosure that it had overcharged clients, including the UK government.
In a statement on Friday (19 December), the Australia-headquartered company confirmed Healy’s employment has been terminated with immediate effect “for breach of contractual obligations”, subsequent to his temporary suspension last month. CTM global chief operating officer Eleanor Noonan has been named interim CEO for CTM UK and Europe.
CTM also asserted that the company “continues to operate at full capacity, with no disruption to client services”. All customer-facing teams and systems remain fully functional, the statement added, and it “continues to meet all service obligations without interruption.”
The UK government earlier this month launched a review of its contract with CTM after the company reported accounting errors to the tune of £77.6 million, with repayments owed to a “small number” of UK-based customers.
After voluntarily suspending its shares from trading on the Australian Stock Exchange (ASX) in August and postponing the release of its FY25 accounts, CTM said on Friday that it will issue an additional update regarding the timeline for finalising its FY25 financial statements in February 2026.
The TMC added that it is continuing to work with auditors KPMG to finalise its FY25 financial statements, which includes prior year restatements. Additionally, the company said it has “commenced a review process with certain UK customers to determine the amount of refunds payable to those customers and that work is ongoing”.
CTM also announced that it has entered “a financial security arrangement” with the International Air Transport Association (IATA), the details of which were not disclosed.
Tony O’Connor, managing director at travel procurement consultancy Butler Caroye, said the IATA deal provides a “thermometer” of CTM’s financial situation.
“IATA would have required CTM to lodge financial security, typically cash, a bank guarantee or a letter of credit, sized as a multiple of its normal BSP settlement exposure,” O’Connor said. “We can now read CTM’s situation by what IATA does next. If it eases or drops the conditions, things are looking up. If it tightens, the removal of access to BSP might be approaching, which would close the business.”
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