Menu
16/05/2002
easyJet aquire rival Go for £374 million
Low-cost airline easyJet has bought over rival airline Go for £374 million.
Chairman of easyJet Stelios Haji-Ioannou described the purchase of the airline – owned by private equity company 3i – as "one of the most exciting developments in easyJet's history".
EasyJet chief executive Ray Webster added: "Combining easyJet and Go will provide additional critical mass and enable us to move forward faster," he said. He added the buy-out will not be followed by an increase in fare charges, arguing that the purchase of Go was "an opportunity to keep prices low.
"That is the beauty of our model. We need low fares to stimulate the market that we are developing."
EasyJet will meet the sale price for Go through cash and a £267.7 million rights issue at 265p per share.
The sale may embarrass former owner BA who sold the company last June to the 3i for £110 million. However, a BA spokesman described the sale as a good return on a 400% return on a £25 million investment.
The Go brand name, however, will not survive the sale as the operator will be wholly subsumed by easyJet. Go's chief executive Barbara Cassani will not have a place after the transition as she has expressed her desire to step down after the sale. However, she, along with other executives who own 22.5 % of the airline, are set to collect on the sale.
The removal of one of the main competitors in the low-budget end of the market will intensify competition between the operators working the European routes – Ryanair, BA and British Midland.
Also, with the acquisition of Go, easyJet are now a potential threat to national carriers such as BA, Air France and KLM.
Go, which flew mainly out of Stansted, was launched four years ago and operated on 38 routes throughout Europe.
(GMcG)
Chairman of easyJet Stelios Haji-Ioannou described the purchase of the airline – owned by private equity company 3i – as "one of the most exciting developments in easyJet's history".
EasyJet chief executive Ray Webster added: "Combining easyJet and Go will provide additional critical mass and enable us to move forward faster," he said. He added the buy-out will not be followed by an increase in fare charges, arguing that the purchase of Go was "an opportunity to keep prices low.
"That is the beauty of our model. We need low fares to stimulate the market that we are developing."
EasyJet will meet the sale price for Go through cash and a £267.7 million rights issue at 265p per share.
The sale may embarrass former owner BA who sold the company last June to the 3i for £110 million. However, a BA spokesman described the sale as a good return on a 400% return on a £25 million investment.
The Go brand name, however, will not survive the sale as the operator will be wholly subsumed by easyJet. Go's chief executive Barbara Cassani will not have a place after the transition as she has expressed her desire to step down after the sale. However, she, along with other executives who own 22.5 % of the airline, are set to collect on the sale.
The removal of one of the main competitors in the low-budget end of the market will intensify competition between the operators working the European routes – Ryanair, BA and British Midland.
Also, with the acquisition of Go, easyJet are now a potential threat to national carriers such as BA, Air France and KLM.
Go, which flew mainly out of Stansted, was launched four years ago and operated on 38 routes throughout Europe.
(GMcG)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
17 May 2005
Easyjet chief executive to step down
Easyjet has announced that chief executive Ray Webster is to step down after ten years with the company. Mr Webster described his time with Easyjet as the “highlight” of his long career in the airline business, but admitted that he had to make “some personal costs”.
Easyjet chief executive to step down
Easyjet has announced that chief executive Ray Webster is to step down after ten years with the company. Mr Webster described his time with Easyjet as the “highlight” of his long career in the airline business, but admitted that he had to make “some personal costs”.
30 October 2001
EasyJet looks to expand services from Belfast
Low fares airline EasyJet has announced that it plans to build on its existing routes from Belfast to London after posting a healthy increase in profits. EasyJet’s preliminary results for the year ended 30 September 2001 show pre-tax profits rose 82 per cent to £40.1 million and revenues were up 35 per cent to £356.9 million.
EasyJet looks to expand services from Belfast
Low fares airline EasyJet has announced that it plans to build on its existing routes from Belfast to London after posting a healthy increase in profits. EasyJet’s preliminary results for the year ended 30 September 2001 show pre-tax profits rose 82 per cent to £40.1 million and revenues were up 35 per cent to £356.9 million.
11 June 2002
Budget airlines reveal increasing passenger numbers
Budget airline easyJet and potential merger partner Go have unveiled increased passenger numbers for May. On Tuesday easyJet said they carried 898,080 passengers in May, 43% more than in the same period last year, while Go said they carried just over 500,000 passengers in May, 89% more than it did the year before.
Budget airlines reveal increasing passenger numbers
Budget airline easyJet and potential merger partner Go have unveiled increased passenger numbers for May. On Tuesday easyJet said they carried 898,080 passengers in May, 43% more than in the same period last year, while Go said they carried just over 500,000 passengers in May, 89% more than it did the year before.
16 October 2009
Airline Makes 'Easymove' To City
Two so-called no frills airlines are to go head-to-head next year with news that Easyjet is to move one of its busiest routes from Belfast International Airport to the George Best Belfast City Airport. The orange and white brightly-liveried planes will operate a twice-daily service to London Luton from 7the January next year.
Airline Makes 'Easymove' To City
Two so-called no frills airlines are to go head-to-head next year with news that Easyjet is to move one of its busiest routes from Belfast International Airport to the George Best Belfast City Airport. The orange and white brightly-liveried planes will operate a twice-daily service to London Luton from 7the January next year.
05 July 2002
Low cost airline numbers continue to grow
Low-cost airline partners Easyjet and Go have announced increases in passenger numbers for the month of June. Easyjet said it carried 958,857 passengers, an increase of 51.5% compared with last year, and 6% higher than in May, while Go reported a 71.8% increase in passenger number to 550,749.
Low cost airline numbers continue to grow
Low-cost airline partners Easyjet and Go have announced increases in passenger numbers for the month of June. Easyjet said it carried 958,857 passengers, an increase of 51.5% compared with last year, and 6% higher than in May, while Go reported a 71.8% increase in passenger number to 550,749.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
