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{| align=right||-||-|||-| patrol bike from 1951|-| at Brancaster|}
The Automobile Association (
The AA) is a former
United Kingdom motoring association that became a private limited company in 1999, currently owned by two large private equity firms.
History
On
June 29, 1905 a group of motoring enthusiasts met at the
Trocadero (London) restaurant in the
West End of London of
London. This was the inauguration of the Automobile Association, formed to help motorists avoid police
speed traps.
By 1906 the association took a stand on road safety issues, and erected thousands of roadside warning signs.
In
1908, the AA published the
AA Members' Special Handbook, a list of nationwide agents and mechanics. The following year saw the introduction of the AA's free legal system.
Between
1910 and
1929 the AA introduced
AA Routes. To this day, the association continues to produce travel guides and maps. AA Publishing has grown to be the United Kingdom's dominant publisher of travel literature. Also, from
1912 the AA began inspecting hotels and restaurants, issuing the coveted
AA Star Classification to those deemed to be of superior quality. By
1914, the AA had grown to 83,000 members. In the 1920s the association introduced pre-purchase and post-accident repair checks.
By 1939, the AA's membership had grown to 725,000, a number equivalent, at the time, to 35 percent of all cars in the United Kingdom. When World War II ended the AA began to protest about wartime petrol rationing. The campaign was successful and rationing was repealed in 1950. This was the first of many campaigns, led by the AA, that were aimed at championing the rights of British motorists.
Other campaigns in which the AA have been instrumental, include the compulsory wearing of seat belts, and the introduction of lead-free petrol. Seat belt legislation became law in the UK in 1983.
1949 saw the launch of the AA's
Breakdown Cover service. Initially only available in London and surrounding districts, it has been gradually extended to cover most of the UK.
The
AA Insurance brokerage service started life in 1967. Today, AA Insurance is the UK's largest motor insurance company. The service was later extended to cover home and life insurance and now also includes pet, travel and business insurance.
In 1973
AA Roadwatch began broadcasting traffic alerts on UK commercial radio stations. It grew to become the largest broadcaster of traffic information in Europe.
AA Relay was introduced in 1985, a service that promised to deliver a broken-down vehicle, its driver and passengers, luggage and trailer to anywhere in Britain.
In
1991, the
AA Driving School was launched and employs more than 2,050 qualified driving instructors. By 1994, AA's membership was at eight million. Current estimates place the figure at over twelve million members.
In 1998 the AA closed down its 142 high street shops resulting in a loss of 1,000 jobs. These shops had sold insurance, AA membership and various motoring products.
In 1999 the association demutualised and was sold to
Centrica, the holding company of
British Gas. Each full personal member of the association's breakdown services in the UK and Ireland received a payout of over a hundred pounds. A new organisation, the
AA Motoring Trust, was formed in
2002 to take over the non-commercial activities of the AA.
In 2004 the AA was sold for Pound sterling 1.75 billion to two European private equity firms, CVC Capital Partners and
Permira.
A new headquarters building for the AA, known as
Fanum House was opened in 1973 by the Queen. It is located in Basing View, Basingstoke, north Hampshire. Whilst the AA was under Centrica control in 2001 the HQ was moved to an office in Farnborough, Hampshire (also in Hampshire), but returned to Basingstoke as of October 2005 following the sale to CVC Permira.
On
08 May 2007 the AA was the focus of the BBC's "The Money Programme". The sale of the company to the private equity firm CVC Permira was deeply criticised and the detrimental effect this has had upon the companies performance was exposed. Following the October 2005 buyout the company has been saddled with £1.3billion of debt and the number of patrols was cut significantly, with many of these cuts touted to be under unfair circumstances, a third of the 10,000 staff was cut in order to "improve efficiency". Tim Parker, the current chief executive has since admitted that the cut-backs were too great, and that with the increased work load in the 2006 summer they required more patrols.
It has since been announced that CVC Permira is looking to sell the AA for approximately £3bn marking a substantial profit, even after repayments of debt. On
25 June, 2007 the company announced that it is to merge with another private equity owned company Charterhouse's
Saga, which provides services including insurance and holidays to over 50s. The new holding company, which is yet to be named, will be owned by CVC, Permira, Charterhouse and staff. The deal valued the AA at £3.35 billion and the combined company will be worth more than £6 billion, making it the 20th largest company in the UK.
See also
External links
- The AA website
- AA Route Planner
- The AA Car Data Check Site
- AA Car Insurance
- AA Travel Insurance
{| align=right||-||-|||-| patrol bike from 1951|-| at Brancaster|}
The Automobile Association (
The AA) is a former United Kingdom motoring association that became a private limited company in 1999, currently owned by two large private equity firms.
History
On June 29, 1905 a group of motoring enthusiasts met at the Trocadero (London) restaurant in the
West End of London of London. This was the inauguration of the Automobile Association, formed to help motorists avoid police
speed traps.
By 1906 the association took a stand on road safety issues, and erected thousands of roadside warning signs.
In 1908, the AA published the
AA Members' Special Handbook, a list of nationwide agents and mechanics. The following year saw the introduction of the AA's free legal system.
Between 1910 and 1929 the AA introduced
AA Routes. To this day, the association continues to produce travel guides and maps. AA Publishing has grown to be the United Kingdom's dominant publisher of travel literature. Also, from
1912 the AA began inspecting hotels and restaurants, issuing the coveted
AA Star Classification to those deemed to be of superior quality. By
1914, the AA had grown to 83,000 members. In the
1920s the association introduced pre-purchase and post-accident repair checks.
By 1939, the AA's membership had grown to 725,000, a number equivalent, at the time, to 35 percent of all cars in the United Kingdom. When World War II ended the AA began to protest about wartime petrol
rationing. The campaign was successful and rationing was repealed in 1950. This was the first of many campaigns, led by the AA, that were aimed at championing the rights of British motorists.
Other campaigns in which the AA have been instrumental, include the compulsory wearing of seat belts, and the introduction of lead-free petrol. Seat belt legislation became law in the UK in 1983.
1949 saw the launch of the AA's
Breakdown Cover service. Initially only available in London and surrounding districts, it has been gradually extended to cover most of the UK.
The
AA Insurance brokerage service started life in
1967. Today, AA Insurance is the UK's largest motor insurance company. The service was later extended to cover home and life insurance and now also includes pet, travel and business insurance.
In
1973 AA Roadwatch began broadcasting traffic alerts on UK commercial radio stations. It grew to become the largest broadcaster of traffic information in Europe.
AA Relay was introduced in 1985, a service that promised to deliver a broken-down vehicle, its driver and passengers, luggage and trailer to anywhere in Britain.
In
1991, the
AA Driving School was launched and employs more than 2,050 qualified driving instructors. By 1994, AA's membership was at eight million. Current estimates place the figure at over twelve million members.
In 1998 the AA closed down its 142 high street shops resulting in a loss of 1,000 jobs. These shops had sold insurance, AA membership and various motoring products.
In 1999 the association demutualised and was sold to Centrica, the holding company of
British Gas. Each full personal member of the association's breakdown services in the UK and Ireland received a payout of over a hundred pounds. A new organisation, the AA Motoring Trust, was formed in
2002 to take over the non-commercial activities of the AA.
In 2004 the AA was sold for Pound sterling 1.75 billion to two European private equity firms,
CVC Capital Partners and
Permira.
A new headquarters building for the AA, known as Fanum House was opened in 1973 by the Queen. It is located in Basing View, Basingstoke, north Hampshire. Whilst the AA was under Centrica control in 2001 the HQ was moved to an office in Farnborough, Hampshire (also in Hampshire), but returned to Basingstoke as of October 2005 following the sale to CVC Permira.
On 08 May 2007 the AA was the focus of the BBC's "The Money Programme". The sale of the company to the private equity firm CVC Permira was deeply criticised and the detrimental effect this has had upon the companies performance was exposed. Following the October 2005 buyout the company has been saddled with £1.3billion of debt and the number of patrols was cut significantly, with many of these cuts touted to be under unfair circumstances, a third of the 10,000 staff was cut in order to "improve efficiency". Tim Parker, the current chief executive has since admitted that the cut-backs were too great, and that with the increased work load in the 2006 summer they required more patrols.
It has since been announced that CVC Permira is looking to sell the AA for approximately £3bn marking a substantial profit, even after repayments of debt. On
25 June,
2007 the company announced that it is to merge with another private equity owned company
Charterhouse's Saga, which provides services including insurance and holidays to over 50s. The new holding company, which is yet to be named, will be owned by CVC, Permira, Charterhouse and staff. The deal valued the AA at £3.35 billion and the combined company will be worth more than £6 billion, making it the 20th largest company in the UK.
See also
External links
- The AA website
- AA Route Planner
- The AA Car Data Check Site
- AA Car Insurance
- AA Travel Insurance
The AA: Car Insurance, Breakdown Cover, Loans, Motoring Advice, Travel ...
Three per cent of male drivers would consider giving up their wife or partner ... The Automobile Association Limited 2008 Website Terms & Conditions Privacy Policy Security Call Charges ...
Route Planner (GB) : Routes, maps and directions - The AA
Route Planner. You can search for routes using street or postcode, town, city or ... The Automobile Association Limited 2008 Website Terms & Conditions Privacy Policy Security Call Charges ...
AA Motoring Trust
The work of the AA Motoring Trust is being taken forward by the IAM Motoring Trust. To access the IAM Motoring Trust website, please click: www.iamtrust.org.uk
The Automobile Association - Wikipedia, the free encyclopedia
The Automobile Association (The AA) was a British motoring association that became a private limited company in 1999, and is owned by two large private equity firms.
The Automobile Association
Terms: Payment via Internal Transfer. Costs circulated by The Purchasing Office. Other Details: Anyone wishing to have a UNIVERSITY VEHICLE covered by one the AA's
AA Ireland : Your Travelling and Motoring Essentials
AA Ireland ... Membership offers you motoring security and peace of mind throughout Ireland and the UK, 24 hours a day, 365 days a year.
The British Cartographic Society > Automobile Association
Welcome to The British Cartographic Society website. The BCS is a dynamic association of individuals and organisations dedicated to exploring and developing the world of maps ...
The Automobile Association - Icons of England ...
The Automobile Association. The AA is the original motoring icon. It celebrated its centenary in 2005 and is currently the largest motoring organisation in the UK.
Appeal No.
THE AUTOMOBILE ASSOCIATION LTD RESPONDENT . Transcript of Proceedings . JUDGMENT . Revised APPEARANCES
newscast | The Automobile Association Ltd
Ref: 181294. Company: The Automobile Association Ltd; An AA worker attending a broken down car... Release Date: 2008-05-12 . More details...
