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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)
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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.
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.
10 April 2002
Insurance policy premiums give Easyjet cause for concern
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08 February 2002
Easyjet enjoy rise in passenger numbers
Low-cost carrier Easyjet has revealed yet another rise in passenger numbers, as the latest figures show the airline's soaring popularity with passenger numbers up by over 30 per cent on the same time last year. Figures for the firm's performance show that the airline carried 700,526 passengers during January 2002.
Easyjet enjoy rise in passenger numbers
Low-cost carrier Easyjet has revealed yet another rise in passenger numbers, as the latest figures show the airline's soaring popularity with passenger numbers up by over 30 per cent on the same time last year. Figures for the firm's performance show that the airline carried 700,526 passengers during January 2002.
24 July 2001
EasyJet to expand range of Belfast destinations
Economy airline company easyJet has revealed plans to expand the range of destinations on offer from Belfast which could see the introduction of a direct service to Paris and Malaga.
EasyJet to expand range of Belfast destinations
Economy airline company easyJet has revealed plans to expand the range of destinations on offer from Belfast which could see the introduction of a direct service to Paris and Malaga.
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