Budget airline consolidation
 

Ryanair announced today that they are buying KLM's loss-making budget
subsidiary Buzz for GBP 15 million. Buzz currently operates 21 routes
out of London Stansted airport (which, incidentally, is closed this
morning due to lack of access by road and rail caused by this mornings'
middling snow cover).

Ryanair have also announced that they're buying a further 100 Boeing
737s, in addition to the 150 they ordered last year.

--
Arwel Parry
http://www.cartref.demon.co.uk/

Re: Budget airline consolidation
 

On Fri, 31 Jan 2003 11:58:32 +0000, Arwel Parry
wrote:

    >Ryanair announced today that they are buying KLM's loss-making budget
    >subsidiary Buzz for GBP 15 million. Buzz currently operates 21 routes
    >out of London Stansted airport (which, incidentally, is closed this
    >morning due to lack of access by road and rail caused by this mornings'
    >middling snow cover).

Does anyone know why? 15million is nothing admittedly, but what is
the value to RyanAir, simply removing a competitor?

Jim.

Re: Budget airline consolidation
 

Jim Ley wrote:
    > Arwel Parry wrote:
    >> Ryanair announced today that they are buying KLM's loss-making budget
    >> subsidiary Buzz for GBP 15 million. Buzz currently operates 21 routes out
    >> of London Stansted airport (which, incidentally, is closed this morning
    >> due to lack of access by road and rail caused by this mornings' middling
    >> snow cover).
    > Does anyone know why? 15million is nothing admittedly, but what is
    > the value to RyanAir, simply removing a competitor?

For the slots?

miguel
--
Hit The Road! Photos and tales from around the world: http://travel.u.nu

Re: Budget airline consolidation
 

On Mon, 03 Feb 2003 17:22:07 GMT, [email protected] (Miguel Cruz) wrote:

    >Jim Ley wrote:
    >> Arwel Parry wrote:
    >>> Ryanair announced today that they are buying KLM's loss-making budget
    >>> subsidiary Buzz for GBP 15 million. Buzz currently operates 21 routes out
    >>> of London Stansted airport (which, incidentally, is closed this morning
    >>> due to lack of access by road and rail caused by this mornings' middling
    >>> snow cover).
    >> Does anyone know why? 15million is nothing admittedly, but what is
    >> the value to RyanAir, simply removing a competitor?
    >For the slots?

There's no slot problem at Stansted is there? and there's only
Berlin, Paris and Geneva of the places it flies to that are likely to
be difficult to fly into...

Jim.

Re: Budget airline consolidation
 

On Mon, 03 Feb 2003 17:34:10 GMT, [email protected] (Jim Ley) wrote:

    >On Mon, 03 Feb 2003 17:22:07 GMT, [email protected] (Miguel Cruz) wrote:
    >>Jim Ley wrote:
    >>> Arwel Parry wrote:
    >>>> Ryanair announced today that they are buying KLM's loss-making budget
    >>>> subsidiary Buzz for GBP 15 million. Buzz currently operates 21 routes out
    >>>> of London Stansted airport (which, incidentally, is closed this morning
    >>>> due to lack of access by road and rail caused by this mornings' middling
    >>>> snow cover).
    >>> Does anyone know why? 15million is nothing admittedly, but what is
    >>> the value to RyanAir, simply removing a competitor?
    >>For the slots?
    >There's no slot problem at Stansted is there? and there's only
    >Berlin, Paris and Geneva of the places it flies to that are likely to
    >be difficult to fly into...

How about gaining slots at airports that are actually at the city
served, like really Frankfurt instead of Hahn?


************* DAVE HATUNEN ([email protected]) *************
* Tucson Arizona, out where the cacti grow *
* My typos & mispellings are intentional copyright traps *

Re: Budget airline consolidation
 

In article , [email protected]
(Miguel Cruz) wrote:

    > > Does anyone know why? 15million is nothing admittedly, but what is
    > > the value to RyanAir, simply removing a competitor?
    >
    > For the slots?

They are also getting 12m in cash from Buzz bookings IIRC, making it a
very cheap purchase indeed. (A whole airline for the price of ten houses!)

Re: Budget airline consolidation
 

In article ,
wrote:
    > [email protected] (Miguel Cruz) wrote:
    >>> Does anyone know why? 15million is nothing admittedly, but what is
    >>> the value to RyanAir, simply removing a competitor?
    >>
    >> For the slots?
    > They are also getting 12m in cash from Buzz bookings IIRC, making it a
    > very cheap purchase indeed. (A whole airline for the price of ten houses!)

And no debt? Damn, wish I'd known - I would have bought it!

miguel
--
Hit The Road! Photos and tales from around the world: http://travel.u.nu

Re: Budget airline consolidation
 

"Hatunen" schreef in bericht
news:[email protected]...
    > On Mon, 03 Feb 2003 17:34:10 GMT, [email protected] (Jim Ley) wrote:
    > >On Mon, 03 Feb 2003 17:22:07 GMT, [email protected] (Miguel Cruz) wrote:
    > >
    > >>Jim Ley wrote:
    > >>> Arwel Parry wrote:
    > >>>> Ryanair announced today that they are buying KLM's loss-making budget
    > >>>> subsidiary Buzz for GBP 15 million. Buzz currently operates 21 routes
out
    > >>>> of London Stansted airport (which, incidentally, is closed this
morning
    > >>>> due to lack of access by road and rail caused by this mornings'
middling
    > >>>> snow cover).
    > >>>
    > >>> Does anyone know why? 15million is nothing admittedly, but what is
    > >>> the value to RyanAir, simply removing a competitor?
    > >>
    > >>For the slots?
    > >
    > >There's no slot problem at Stansted is there? and there's only
    > >Berlin, Paris and Geneva of the places it flies to that are likely to
    > >be difficult to fly into...
    > How about gaining slots at airports that are actually at the city
    > served, like really Frankfurt instead of Hahn?

Nope. It is expected that they will give up the Buzz-routes to Frankfurt,
Amsterdam and some other places that people actually want to go to. "These
airports are too expensive for Ryanair".

Sjoerd

Re: Budget airline consolidation
 

[email protected] writes:

    > They are also getting 12m in cash from Buzz bookings IIRC, making it a
    > very cheap purchase indeed. (A whole airline for the price of ten houses!)

(Very expensive houses!) The KLM finance director has I think
strongly criticised Ryanair for trying to claim that advance payments
for flights can simply be deducted from the purchase price. As if the
people who have paid could then be flown completely free, at no cost
to Ryanair, and the money spent on something else!

Incidentally the deal does not include a complete airline, as someone
else joked: Ryanair apparently insisted that Buzz's aircraft NOT be
included in the deal. They're to be handed back to KLM instead.
(Ryanair prefers Boeing 737s to BAe146es.) So, no planes. Ryanair
has no problems with this of course because it now has 737s coming out
of its ears. (translation: it has lots of them.)

Like others, I'd say that Ryanair wanted to secure room for expansion
at Stansted.

I'm amused that Ryanair did this so soon after sneering at Easyjet for
growing by acquisition. Can we view this as an admission that Easyjet
was right all along? :-)

--
-- Chris.

Re: Budget airline consolidation
 

In article , [email protected]
() wrote:

    > [email protected] writes:
    >
    > > They are also getting 12m in cash from Buzz bookings IIRC, making it
    > > a very cheap purchase indeed. (A whole airline for the price of ten
    > > houses!)
    >
    > (Very expensive houses!)

Try looking for a four-bedroom place in Suffolk sometime. :)

    > Incidentally the deal does not include a complete airline, as someone
    > else joked: Ryanair apparently insisted that Buzz's aircraft NOT be
    > included in the deal. They're to be handed back to KLM instead.

Ah, I'd wondered about that just today. Thanks for the info.