Actually guys if you will tune in to BBC news on friday at 0700 eJ will announce the completion of the purchase of GO. They will also confirm the secondment of Go's operation director (simmons) as the person in charge of the integration of Go within eJ. All current bases bases of Go will continue to exist and the confirmed order of Airbus will be used to integrate Go's network within eJ. All Ops personnel will be moved to easyLand, all flight crew will be given the option to sign an eJ contract with continuation of existing shareoptions. eJ's goal is to complete integration within 6 months including repainting and refurbishing all of Go's aircraft. BC will not be included in the restructuring of the bigger eJ. And NO there is no talk of purchasing Ryan Air as their concept is aimed at "extreme low cost leisure" market unlike eJ's focus on the business market.
Three of eJ's managers have set off to Munich with the express instructions to change DBA's booking system to internet only ASAP. This will be the first step in converting DBA as a low cost carrier, eJ is not throwing away 600k a month without trying to make it work....
Thursday is a big day for both eJ and 3i, it will be the first board meeting chaired not by stelios at eJ and it will be the day of final year end results of 3i after a dismal year of bodged investments in telecomm so it is crucial for both companies to show an united front in the largest public sale of 3i and buyout of eJ.
A rights issue will be announced shortly after the first press release meaning a dillution of shares and an unavoidable drop in share price of eJ. 3i is insiting on cash payment and no eJ shares, as a matter of fact eJ sold its latest delivery of the new 700 to a leasing company yesterday to strenghten its balance sheet.
eJ has a long way to go to regain the "favourite son" status of the LSE...
In the opinion of many insiders at both Go and eJ, this could be a marriage made in heaven if and only if all personnel involved believe in the joint airline.
Quite a few of Go's upper management will elect not to be a part of the new airline and will be handsomely rewarded to put up and ship out both in severance pay and Go/3i shares.
watch this space.....
Last edited by insideinfo; 14th May 2002 at 22:53.