Airlines, Airports & Routes Topics about airports, routes and airline business.

EasyJet

Old 5th Apr 2006, 08:58
  #61 (permalink)  
 
Join Date: Oct 2005
Location: Front Left
Posts: 28
FL Group sells its 16.9% stake in easyJet

All hands, abandon ship, or what ??

Regulatory announcement from LSE:
"FL Group realises profit from easyJet investment
Approximately EUR 140 million realised profit from time of initial investment
FL Group ("the Company" or "the Group") announces today the sale of its 16.9%
stake in easyJet in an international placement with JPMorgan as sole bookrunner
and JPMorganCazenove as joint lead manager. The estimated proceeds from the sale
of the holding amounts to approximately EUR 325 million.
By selling the stake FL Group has realised a profit of approximately EUR 140
million giving an annual return of around 70%, far surpassing the firms' target
investment objective of 20%. Proceeds from the sale will be channelled into new
investments during 2006.

From the time of its initial investment in easyJet in October 2004, FL Group has
had periodic contact with other owners of the airline as well as its management.
FL Group believes that the easyJet airline has great prospects and the sale of
the stake at this time is primarily due to other investment opportunities.

Hannes Smarason, CEO of FL Group:
"FL Group first invested in easyJet just under two years ago and the investment
has proved to be a great success which has provided a foundation on which we
have built FL Group. We have enjoyed being an investor in easyJet and believe
that the company is well placed within its industry and has a bright future.
Nevertheless, realising profit from the investment was appropriate for the FL
Group at this time. We are working on several interesting investment projects
and the sale gives us the opportunity to look at more projects and of greater
scale.

The sale of our easyJet holding does not affect our other investments in the
aviation sector and we remain committed to our investments in Icelandair,
Sterling and Finnair."

Share price down 9,55% today
CAT III DUAL is offline  
Old 5th Apr 2006, 09:02
  #62 (permalink)  
 
Join Date: Feb 2002
Location: Under the weather
Posts: 107
70% profit... pretty good business from their point of view.
Who bought the shares?
Ryanair????
Bob Down is offline  
Old 5th Apr 2006, 12:12
  #63 (permalink)  
 
Join Date: May 2002
Location: West Sussex, UK
Posts: 220
This has NOTHING to do with the rumours here of easyjet being a bit...uneasy.

The REAL reson why this is explained below in the link:

http://www.moneyweek.com/file/10592/...-meltdown.html

Basically their monetry system is in turmoil due to the international carry trade unravelling.
ETOPS773 is offline  
Old 5th Apr 2006, 15:44
  #64 (permalink)  
 
Join Date: Jul 1999
Location: Global
Posts: 460
Yeah right 773

773 who is your dealer? because what he's been selling you must be too good!


Maybe.
Just Maybe.

The Icelandic’s see what we all seem to have been know was coming. Training capacity limits, unhappy pilot group, silly season is just around the corner.

Either that or they just wanted to take the money and run. Look what happened to the share price afterward.

Well strike this one up to smart investors. Who’s next?? There are plenty of other airlines in similar boats to EJ
international hog driver is offline  
Old 5th Apr 2006, 19:13
  #65 (permalink)  
 
Join Date: Nov 2001
Location: London Whipsnade Wildlife Park
Posts: 4,395
Grrr

The value of easyJet has slumped since the Icelandic's sold their stake:

Wednesday, the price of shares in easyJet slid by more than 11.0 percent to 318.0 pence. The stock later closed down 8.66 percent at 327.0 pence, giving easyJet a market value of 1.33 billion pounds.
Buster the Bear is offline  
Old 5th Apr 2006, 20:35
  #66 (permalink)  
Transparency International
 
Join Date: Jul 2000
Location: Köln
Posts: 739
Are they going to off-load Sterling as well?
dusk2dawn is offline  
Old 5th Apr 2006, 22:20
  #67 (permalink)  
 
Join Date: Mar 1999
Location: Ashbourne Co Meath Ireland
Age: 69
Posts: 470
Proceeds from the sale will be channelled into new
investments during 2006.
Aer Lingus perhaps??????????
Irish Steve is offline  
Old 6th Apr 2006, 07:07
  #68 (permalink)  
 
Join Date: Jan 2006
Location: Meon Valley
Posts: 106
Just normal investment business from what I can see. There was never going to be a take over. Besides if it wasn't for them, the share price would never have been driven up. After all easy aren't setting the world alight with profits, yeild and asset holdings.
MEON VALLEY FLYER is offline  
Old 6th Apr 2006, 07:35
  #69 (permalink)  
 
Join Date: Oct 2000
Location: near EGKK
Posts: 295
No one can deny that the Iceleandic economy is very overheated at the moment. But, bailing out of a successful company would not be the answer, unless they we're cash strapped. However, my contact at FI tell's me that they're not coming under any increased pressure to reduce costs further at the moment, so I'd say they did this for commercial not economic purposes.

In my experience When you asked to photocopy on both sides of the page thats the first sign of limited Cash left or a sale. Neither which it seems apply to the above
Desk Driver is offline  
Old 6th Apr 2006, 07:42
  #70 (permalink)  
 
Join Date: Oct 2000
Location: near EGKK
Posts: 295
Sell U2 & Buy 787's

Should be reassuring to all affected courtesy of ATW

http://www.atwonline.com/news/story.html?storyID=4611
Desk Driver is offline  
Old 6th Apr 2006, 09:46
  #71 (permalink)  
 
Join Date: Apr 2005
Location: "this is where the magic happens"
Posts: 260
Originally Posted by ETOPS773
This has NOTHING to do with the rumours here of easyjet being a bit...uneasy.

The REAL reson why this is explained below in the link:

http://www.moneyweek.com/file/10592/...-meltdown.html

Basically their monetry system is in turmoil due to the international carry trade unravelling.
So if Icelandīs monetary system is in turmoil, then why would an Icelandic company sell itīs 16,9% stake in a foreign company?

Proceeds from the sale will be channelled into new
investments during 2006.
They obviously have found a beter deal than EZY with all itīs "bright future."

In one way management in EZY can breath a sigh of relief as the threat of a take-over seems to be reduced, although itīs not sure who bought the shares that the FL Group dumped. (didnīt they hire an expensive consultancy firm for advice regarding this matter a couple of months ago?)

On the other hand you can ask yourself why did the FL Group sell itīs multi million Pound stake in a company with a "bright future?"
Bokkenrijder is offline  
Old 6th Apr 2006, 20:35
  #72 (permalink)  
 
Join Date: May 2001
Location: UK
Posts: 57
FL never said they wanted to buy Easyjet and this was a normal investment. FL are not aviation guys - unlike Avion. FL are just in to make money and leave. Maybe they buy Finnair, but don't expect them to intergrate, or do anything to get the airlines to work together as they want the flexability to get out whenever there is a good return. Don't think this is the last interesting move by FL or the Icelandics in the airline industry, rumour has it there are some really interesting moves to come.
swedish is offline  
Old 15th Apr 2006, 06:02
  #73 (permalink)  
 
Join Date: Apr 2006
Location: Portugal
Age: 39
Posts: 9
Are you sure that they are planning in lisbon?
jds_portugal is offline  
Old 15th Apr 2006, 06:26
  #74 (permalink)  
 
Join Date: Jul 2003
Location: On the road
Posts: 754
Definitely planning for LIS. Would have started this summer but couldn't get the slots as LIS is pretty slot constrained.
TartinTon is offline  
Old 16th Apr 2006, 09:33
  #75 (permalink)  
 
Join Date: Oct 2005
Location: Leeds, UK & Cork, Ireland
Posts: 964
unsurprising...

IF I were the FL group I'd be pulling my muney out and running back to Iceland as well. U2 face a period of turmoil. Since they took over GO in an ego fuled attempt to out grow FR costs have soared, and fares have too. Crews are all poorly turned out and trained.
Take the decision to to kit out the A319s in a 156 pax layout...it required structural changes to the aircraft and required an extra crew mwmber to be carried, yet only 7 more pax seats are available...not so cost effective, me thinks...
U2 737-300/700 crew to pax ratio 49.667:1
U2 A319 crew to pax ratio 39:1
FR 737-800 crew to pax ratio 47.25

no matter how badly paid the crews may be costs on a per seat basis wil always be higher for easyJet, add this to the need for airstairs and the bizzare use of airbridges, and thing get worse.

U2 has tried to position itself away from its tradtional niche, and to appeal to business passengers, this wont work, business passengers want flexability and service, not a constant birrage of selling and scowling, and cheap catch phrases...c'mon lets fly...(with someone else)
brian_dromey is offline  
Old 16th Apr 2006, 09:48
  #76 (permalink)  
 
Join Date: Jun 2005
Location: 1234
Posts: 80
Originally Posted by brian_dromey
Crews are all poorly turned out and trained.
I take great exception to that comment, the crew are not poorley turned out and we are certainly not poorley trained.

The uniform isn't the best (this is changing for both flight and cabin crew), but at the end of the day it doesn't matter what the crew have on, as long as they have the ability to do the job, which I am confident in saying everyone I have the pleasure of flying with has.

Comments like those above should be kept to yourself.

easyBoy
easyboy is offline  
Old 16th Apr 2006, 10:03
  #77 (permalink)  
Thread Starter
 
Join Date: Sep 2004
Location: UK
Posts: 504
Agreed, I've flown with some great easyJet crews.
phil_2405 is offline  
Old 16th Apr 2006, 10:15
  #78 (permalink)  
 
Join Date: Apr 2005
Location: "this is where the magic happens"
Posts: 260
I donīt quite agree with the comment regarding training as I think itīs not bad at all. Not great, but not bad either.

However, regarding the structure of the company I have to agree with Brian on this one.

It seems as if EZY has cornered itself and is now desperately trying to reinvent itself. It appears to me as if EZY has admited defeat and has given the real "low cost" market to Ryanair whilst concentrating on the business market.

All in all I think our new CEO will be facing a tough battle in weeding out the amateuristic/short term mentality within EZYīs middle management and replacing it with competent people, able to manage a 100+ fleet with a cristal clear long term business plan!
Bokkenrijder is offline  
Old 16th Apr 2006, 13:10
  #79 (permalink)  
 
Join Date: Jul 2000
Location: Thailand
Posts: 942
I think Mr Dromey should learn to think a little and do some research before he puts pen to paper and spouts such utter drivel about the training in easyJet. If I knew who he was, I would invite him to a ground school/simulator session and see if he thought after a few hours of that wether or not he considers the crews to be poorly trained.
If you want to write rubbish, get a job with the Star. If you want to read rubbish, read the post by Mr Dromey.
rubik101 is offline  
Old 16th Apr 2006, 13:32
  #80 (permalink)  
 
Join Date: Jul 2002
Location: UK
Posts: 18
Do a search on Brian Dromey and you'll find he's never very complimentary about easyJet.

Obviously we lost his bag and this is the best he can do
Orange Peel is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright Đ 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.