SINGAPORE, 26 May 2020: Mother ship Hertz has filed for bankruptcy in the US under Chapter 11 protection, but that should not have a material impact on Hertz operations in Asia, Australia and New Zealand, Hertz’s vice president APAC, Eoin MacNeill, claims in a statement released on Monday.
Saying Hertz continues to operate as normal in Asia, he noted that the “the short term self-drive vehicle rental industry had been deeply impacted around the world by the Covid-19 pandemic and the consequent downturn in domestic and international travel.
Hertz Asia Pacific operates in Singapore, Guam, Saipan, Thailand, Malaysia, Taiwan (ROC), Hong Kong, Brunei, Pakistan, Cambodia, Vietnam, Macao, Japan, Philippines, Korea, India and China.
Hertz Global Holdings and some of its US and Canadian subsidiaries voluntarily filed for reorganisation under Chapter 11 in the United States Courts last week.
However, MacNeill claimed Hertz operations in Asia operate under franchise arrangements.
“It’s business as usual for Hertz in Asia. Hertz locations are open across the APAC region and ready to help customers with their rental needs,” he said. “All Hertz reservations, loyalty and customer programmes continue to operate, including Hertz Gold Plus Rewards as well as our rewards, coupon and voucher programmes.
“Since the pandemic began, we have undertaken a range of measures to reduce costs … We have cut all discretionary spending, reduced labour costs and sought new rental agreements with landlords. We have also been de-fleeting our network and de-registering unused vehicles.”
The term ‘Chapter 11’ is specific to the US legal environment and describes the move by a company to file for protection while management works on a financial restructuring.