Astraeus - 2
Swedish low-cost carrier FlyMe has abandoned plans to take a majority stake in Gatwick-based Astraeus Airlines.
Earlier this month, FlyMe announced it would pay £6m for 51% of Astraeus, with the remaining 49% being retained by current owners Aberdeen Asset Management and the airline’s directors. It also said it would capacity share with Astraeus from November, when two of the UK carrier’s Boeing 737-300 aircraft would start operating flights in Sweden on its behalf.
However, in a statement Monday FlyMe said it and the owners of Astraeus had ‘in the best understanding decided not to fulfil the earlier communicated acquisition agreement’. Instead, it will dry lease two 737-300s from Astraeus, while ‘both parties have the intention to continue the discussions about potential future co-operation on, amongst other things, the English market’.
FlyMe also said it had decided not to proceed with previously announced gradual share acquisitions in Lithuanian Airlines, following due diligence of the Vilnius-based carrier. But it will continue its co-operation with Lithuanian, which includes dry leasing one of its B737-500 aircraft.
‘We are taking another step in our ambition of becoming one of the leading LCC players in Europe,’ said FlyMe chief executive, Finn Thaulow. ‘It also feels positive to be able to conclude business with both Astraeus and Lithuanian Airlines in a way that is beneficial for all parties.’
Fredrik Skanselid, chief executive of the airline’s parent company, FlyMe Sweden AB, added: ‘The demand for LCC continues to grow. As we are planning to expand our business, domestically as well as internationally, it feels good that FlyMe now gets access to two more Boeing 737-300s which suits our future LCC strategy perfectly.’
Stockholm-listed FlyMe’s fleet comprises four Boeing 737-300s and one Boeing 737-500, which it operates from three bases in Gothenburg Landvetter, Malmo Sturup and Stockholm Arlanda. The airline launched in 2004 and now offers services to 12 destinations including Alicante, Barcelona, Nice and Stansted, its only UK route. It carried over 500k passengers in 2005.
Background from e-tid.com:
Swedish LCC takes stake in Astraeus (01/09/06)