The company that owns the franchise for Hertz Rent-A-Car in Micronesia assured the public that Hertz Global Holdings’ Chapter 11 filing in the U.S. will not affect operations in the region.
“We would like to assure our customers and vendors that the Chapter 11 filing by Hertz Global Holdings will not have any impact on our operations in Guam or Saipan. We are and will continue to be open for business,” said Triple J Rentals president Jeff Jones in a statement.
Triple J Rentals owns the Hertz franchises on Guam, Saipan, and Palau.
Hertz APAC vice president Eoin MacNeill also said in a statement that Hertz’s operations in Asia will also not be affected by its parent company’s Chapter 11 filing.
“The short term self-drive vehicle rental industry, of which Hertz is a key player, has been deeply impacted around the world by the COVID-19 pandemic and the consequent downturn in domestic and international travel. However, Hertz continues to operate as normal in Asia. This includes the following countries and regions; Singapore, Guam, Saipan, Thailand, Malaysia, China, Taiwan, Hong Kong, Brunei, Pakistan, Cambodia, Vietnam, Macao, Japan, Philippines, Korea, and India.”
MacNeill added that the decision by Hertz Global Holdings and certain U.S. and Canadian subsidiaries to voluntarily file for reorganization under Chapter 11 in the U.S. courts has no material impact on Hertz operations in Asia which each operate under franchise arrangements.
“Customers can expect the same high level of service and reliability with enhanced cleaning protocols for extra peace of mind and Hertz loyalty program points and rewards are not affected. It’s business as usual for Hertz in Asia,” he said.
Hertz locations are open across the APAC region and ready to help customers with their rental needs—whether for business or leisure purposes. All Hertz reservation, loyalty and customer programs continue to operate, including Hertz Gold Plus Rewards as well as rewards, coupon, and voucher programs.
“Since the pandemic began, we have undertaken a range of measures to reduce costs and ensure we keep the business as robust as possible in both markets. We have cut all discretionary spending, reduced labor costs, and sought new rental agreements with landlords. We have also been de-fleeting our network, and de-registering unused vehicles,” said MacNeill.
He added that the term Chapter 11 is specific to the U.S. legal environment and describes the move by a company to file for protection while management works on a financial restructure. It does not equate to bankruptcy, in the sense that many people understand that word.
The decision by the U.S. organization to enter Chapter 11 will no doubt provide positive benefits in the medium-longer term as it will allow the Hertz business to continue operating while it deals with the continuing effects of coronavirus and positions itself for growth. So effectively it’s business as usual for Hertz APAC, as we look to prepare our operations for the recovery phase as lock-downs are lifted and corporate and leisure travelers start to return to the market, according to MacNeill.
“We are confident we’re taking the right steps to protect Hertz across the APAC region for the economic rebound and we’d like to thank our franchisees, staff and valued customers for their continuing support,” he said. (Saipan Tribune/PR)