This should set the record straight....
KLM pulls out of the running for Go
Maria Wagland, London (14Mar01, 15:21 GMT, 301 words)
Netherlands carrier KLM has pulled out of the running to buy British Airways’ (BA) low-cost subsidiary Go, which it had been considering acquiring and merging with its own low-cost subsidiary Buzz.
KLM had previously confirmed it was considering all its options regarding its own low cost ambitions and that these included evaluating a bid for Go. However the carrier has been denying speculation that it had made a firm offer for Go and a spokesman for the Dutch carrier now says: “We have decided that we do not want to put a final offer in for Go at this moment.”
He cites regulatory problems as a factor for the airline not moving ahead with its interest, arguing that the transaction had “complexities” to do with “regulatory rules and authorities”.
BA, which put its low-cost subsidiary on the market last November, would not comment on how many potential bidders remain in the process, but KLM was believed to have been the only airline still showing an interest. A BA spokeswoman says that the airline has been planning from to find a buyer for Go before the end of the financial year and hopes to keep the sale on track. “We are in the middle of the sale process and hope to have it completed by the end of the month.”
Meanwhile KLM says it is business as usual for its own low-cost subsidiary Buzz, but that it is continuing to evaluate all its options for the carrier. “Buzz will continue to operate as a respectable low-cost carrier from the much sought after base at London Stansted. We are reviewing all options for KLM to continue its low-cost group,” says a spokesman, noting it has a range of options, from trying to find another partner to withdrawing altogether from the low cost sector.
Source: Air Transport Intelligence news