American Express is in talks to form a joint venture for its business travel division with an investor group led by Certares.
The plan will effectively see Amex sell half of its business travel arm with a statement saying the transaction should be completed in the second quarter of 2014 when Amex 'would expect to recognize a gain.'
According to statement, the aim of the JV will be to 'accelerate the transformation' of the division and Amex will retain a 50% stake in the new entity.
At the beginning of this year, Amex unveiled sweeping job cuts across the globe as part of a greater emphasis on digital channels.
Plans are not finalised but the proposed initiative with Certares will see the investor group invest funds of between $700m and $1bn in expanding the business travel division.
The JV company is also to benefit from greater investment in products and services.
In January, Amex announced job cuts of about 5,400 to be made over the course of the year, predominantly from the business travel division.
At the time, chief executive Kenneth Chenault said the company was working to transform itself for the digital market. He also talked about an aggressive shift to online interactions.
The JV will operate under the American Express Global Business Travel brand.
According to the statement:
Existing business travel employees are also expected to go over to the new venture.
Stephen Squeri, group president, global corporate services for Amex says:
The statement also says that senior management in Certares have significant experience in the travel sector.