Eos and MAXjet approach big airlines over partnership or sale
29.06.07
US all business-class transatlantic airlines Eos and MAXjet have approached a number of European carriers looking for a partner or possible buyer, The Times newspaper reports today. Both airlines operate flights from Stansted Airport to the US.
The airlines are believed to be looking for access to the marketing and procurement power of the larger groups, with the newspaper's sources saying they have approached British Airways, Air France and Lufthansa.
Eos is understood to be talking to private equity groups and institutional investors about selling the business, the newspaper added. It is reported to have ruled out an initial public offering (IPO) in London. Meanwhile, it said MAXjet is believed to have proposed a merger with UK business-only rival Silverjet. Both are listed on the UK Aim market with capitalisations of around £100m. MAXjet raised £47m via an IPO earlier this month.
Both BA and Virgin have announced plans to launch their own premium-class only flights (probably first and business, rather than just business) from European cities to the US next year, which would put the existing airlines under pressure. At least one investment back is also reported to be considering entering the market.
Business and first-class seats are the most profitable parts of running a transatlantic service and both BA and Virgin are concerned that the new carriers could cut into their margins.
A spokesman for MAXjet told The Times it was not in negotiations, while BA declined to comment. Dave Spurlock, founder of Eos, told the newspaper: 'We do not discuss our financing activities.'