Buzz v Ryanair at the 11th Hour!
With less than three days to go to the proposed sale of Buzz to Ryanair - KLM are still unable to agre terms with Ryanair. On Wednesday the staff were told that KLM "Remain unable to provide you with several important pieces of information. For this I apologise.
KLM and Ryanair continue to discuss the terms of the sale and to date they have been unable to reach a conclusion on a number of issues.
Until these issues have been resolved, we are simply unable to provide you with any further details. However, none of these issues will affect your entitlement to compensation in the event of your redundancy in accordance with your terms of employment with KLM uk Ltd." signed by the CEO.
On Friday 28th is has been announced that the sale is not going through on the 31st March. The CEO has stated that "As you were advised on 26 March 2003, there were a number of outstanding issues between KLM and Ryanair in relation to the sale of the buzz business.
Regrettably those issues have not as yet been fully resolved and as a result the sale of the buzz business to Ryanair may be delayed.
As a consequence, for the moment you will all continue to be employed by KLM uk Ltd. Your salary and benefits will of course continue to be paid as normal during this time.
We will advise you as and when we have more details and hope to have further information for you on Monday 31st March."
It is a total nightmare for all the employees of KLM uk Ltd. both those who have signed up with Ryanair and those who have not and wish to collect their redundancy all leave both parties behind them.
KLM now run the real risk that they will have lost the sale of the airline for no payment, have lost the routes to Ryanair since they are now selling tickets for them, lost the slots out of Stansted for no payment, be left with the redundancy payment of over 600 staff, and be left with 6 737 leases and 8 146 leases outstanding. Some of the 146 leases run at four times the value of the 737s.
KLM - Didn't they do well !
Ryanair - They'll get the routes since they are already marketing them, and presumably the slots out of STN since they will be vacated by Buzz. - Ryanair won't have to pay for an airline, and have destroyed a small but worthy competitor.
The biggest loses are the wonderful bunch of people that comprise the operating staff of Buzz - they are destroyed.
Last edited by Hugh Effo; 29th Mar 2003 at 23:33.