Mon 10 Feb 2003
easyJet/DBA deal on the rocks
Deutsche BA (DBA) has confirmed a report in today’s FT that its purchase by easyJet is in jeopardy due to the failure of pilots to agree new terms and conditions.
However, easyJet has responded by saying that it is still considering the deal. EasyJet’s option expires on April 30 but it extendable to Aug 3. Before going ahead with the takeover deal, easyJet wants DBA to cut €48m costs and the airline’s pilots to agree to fly 200 more hours a year.
But while many of the German pilots are prepared to accept the changes, the Vereinigung Cockpit union has objected to easyJet’s demands. ‘Cockpit is in a position to mess everything up,’ a DBA spokeswoman told AFX.
In an internal memo from DBA chief Martin Wyatt, seen by FT Deutschland, the airline’s pilots are warned that the easyJet deal is the only way forward.
‘We want to make it very clear to you that DBA has no alternative looming in the background and that a withdrawal of easyJet’s option would seriously endanger every single job at DBA,’ Wyatt told pilots.
Loss-making DBA, which has a workforce of 860 and a fleet of 16 Boeing 737-300s, said last week it would scrap 500 flights in February and March, the equivalent of furloughing two of its aircraft, in response to weak demand.
‘We are forced to adjust capacity,’ Wyatt said Friday. ‘If travel demand doesn’t pick up soon, capacity may be reduced permanently and eventually jobs would be in jeopardy.’
easyJet’s option to take over DBA expires in August. Depending on when the option is exercised, the deal is worth between €30m and €46m.