Tue 12 Nov 2002
easyJet wants to speed up Deutsche deal
AFX reports easyJet’s chief executive, Ray Webster, would like to exercise the airline’s option to buy British Airways’ German arm, Deutsche BA, as soon as possible.
In May this year, easyJet signed ‘heads of terms’ with BA, under which it was entitled to acquire DBA at any time up to 31 March 2003, in a deal worth between £18.3m and £28m, depending on when the option was exercised.
easyJet was originally expected to sign a buy option with BA by the end of June 2002, but this was postponed while the budget carrier concentrated on its takeover of rival Go.
Webster told German news channel n-tv that the sooner easyJet decided to buy DBA, the sooner it could lower costs.
He also said he believed most budget airlines will have disappeared within 2-3 years, given the ‘extremely difficult’ nature of the sector.
Deutsche BA, meanwhile, has been reaping the benefits of its transformation earlier this year into a true low-cost carrier. Between April-June 2002, the airline carried 800,000 passengers, 14% more than in the corresponding quarter of last year.