Astraeus - 2
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Astraeus - 2
Swedish low-cost carrier FlyMe has abandoned plans to take a majority stake in Gatwick-based Astraeus Airlines.
Earlier this month, FlyMe announced it would pay £6m for 51% of Astraeus, with the remaining 49% being retained by current owners Aberdeen Asset Management and the airline’s directors. It also said it would capacity share with Astraeus from November, when two of the UK carrier’s Boeing 737-300 aircraft would start operating flights in Sweden on its behalf.
However, in a statement Monday FlyMe said it and the owners of Astraeus had ‘in the best understanding decided not to fulfil the earlier communicated acquisition agreement’. Instead, it will dry lease two 737-300s from Astraeus, while ‘both parties have the intention to continue the discussions about potential future co-operation on, amongst other things, the English market’.
FlyMe also said it had decided not to proceed with previously announced gradual share acquisitions in Lithuanian Airlines, following due diligence of the Vilnius-based carrier. But it will continue its co-operation with Lithuanian, which includes dry leasing one of its B737-500 aircraft.
‘We are taking another step in our ambition of becoming one of the leading LCC players in Europe,’ said FlyMe chief executive, Finn Thaulow. ‘It also feels positive to be able to conclude business with both Astraeus and Lithuanian Airlines in a way that is beneficial for all parties.’
Fredrik Skanselid, chief executive of the airline’s parent company, FlyMe Sweden AB, added: ‘The demand for LCC continues to grow. As we are planning to expand our business, domestically as well as internationally, it feels good that FlyMe now gets access to two more Boeing 737-300s which suits our future LCC strategy perfectly.’
Stockholm-listed FlyMe’s fleet comprises four Boeing 737-300s and one Boeing 737-500, which it operates from three bases in Gothenburg Landvetter, Malmo Sturup and Stockholm Arlanda. The airline launched in 2004 and now offers services to 12 destinations including Alicante, Barcelona, Nice and Stansted, its only UK route. It carried over 500k passengers in 2005.
Background from e-tid.com:
Swedish LCC takes stake in Astraeus (01/09/06)
Earlier this month, FlyMe announced it would pay £6m for 51% of Astraeus, with the remaining 49% being retained by current owners Aberdeen Asset Management and the airline’s directors. It also said it would capacity share with Astraeus from November, when two of the UK carrier’s Boeing 737-300 aircraft would start operating flights in Sweden on its behalf.
However, in a statement Monday FlyMe said it and the owners of Astraeus had ‘in the best understanding decided not to fulfil the earlier communicated acquisition agreement’. Instead, it will dry lease two 737-300s from Astraeus, while ‘both parties have the intention to continue the discussions about potential future co-operation on, amongst other things, the English market’.
FlyMe also said it had decided not to proceed with previously announced gradual share acquisitions in Lithuanian Airlines, following due diligence of the Vilnius-based carrier. But it will continue its co-operation with Lithuanian, which includes dry leasing one of its B737-500 aircraft.
‘We are taking another step in our ambition of becoming one of the leading LCC players in Europe,’ said FlyMe chief executive, Finn Thaulow. ‘It also feels positive to be able to conclude business with both Astraeus and Lithuanian Airlines in a way that is beneficial for all parties.’
Fredrik Skanselid, chief executive of the airline’s parent company, FlyMe Sweden AB, added: ‘The demand for LCC continues to grow. As we are planning to expand our business, domestically as well as internationally, it feels good that FlyMe now gets access to two more Boeing 737-300s which suits our future LCC strategy perfectly.’
Stockholm-listed FlyMe’s fleet comprises four Boeing 737-300s and one Boeing 737-500, which it operates from three bases in Gothenburg Landvetter, Malmo Sturup and Stockholm Arlanda. The airline launched in 2004 and now offers services to 12 destinations including Alicante, Barcelona, Nice and Stansted, its only UK route. It carried over 500k passengers in 2005.
Background from e-tid.com:
Swedish LCC takes stake in Astraeus (01/09/06)
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Already being discussed in the existing thread on the subject... 
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but there is the curious thing... its not being discussed!
hopefully Hamrah or the others can clarify what is actually going on, but a buyout and a dry lease are very different things. Maybe the Avion Group will step in with some cash...
Does anyone know why posts keep getting deleted? I have received several emails telling me there are replies... but they have all disappeared... curious...
hopefully Hamrah or the others can clarify what is actually going on, but a buyout and a dry lease are very different things. Maybe the Avion Group will step in with some cash...
Does anyone know why posts keep getting deleted? I have received several emails telling me there are replies... but they have all disappeared... curious...
Last edited by crundale; 28th Sep 2006 at 20:54. Reason: curiosity!
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I agree completely, Crundale. The flyMe press release is pretty heavy on the spin - it seems to me that flyMehave backed off the basic deal pretty much completely, and this "we'll lease a couple of your aircraft" is a fig-leaf, and a small one at that.
I find this whole "we at flyMe are going to be one of the leading European LCCs" thing pretty incredible (in the literal sense) too. If you look at the company's performance, it's lost money heavily in the last couple of years, it seems to have spent more time doing share swaps, buybacks and miscellaneous complicated equity flips than actually developing an airline business, and all in all I have to wonder where flyMe's funding is coming from as it certainly isn't from running an airline!
I find this whole "we at flyMe are going to be one of the leading European LCCs" thing pretty incredible (in the literal sense) too. If you look at the company's performance, it's lost money heavily in the last couple of years, it seems to have spent more time doing share swaps, buybacks and miscellaneous complicated equity flips than actually developing an airline business, and all in all I have to wonder where flyMe's funding is coming from as it certainly isn't from running an airline!
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An update from ATI website
Haraldsson set to acquire UK's Astraeus
Kerry Ezard, London (29Sep06, 16:41 GMT)
FlyMe shareholder Palmi Haraldsson is to acquire 51% of UK carrier Astraeus after apparently selling his shares in the Swedish budget carrier, ATI has learned.
FlyMe announced on 25 September that it had pulled out of a deal to acquire 51% of Astraeus for £6 million ($11.4 million), but had struck a dry-lease deal with the UK operator for two Boeing 737-300 aircraft.
Swedish reports suggest Haraldsson sold his FlyMe stake after a dispute with fellow shareholders over the decision not to proceed with the Astraeus acquisition. A source close to the deal tells ATI that Haraldsson is now expected to purchase the UK carrier by himself.
Haraldsson also runs Icelandic investment firm Fons Eignarhaldsfelag, which owns Icelandic budget carrier Iceland Express. He is understood to have held the majority of FlyMe’s ‘A’ shares, although it is unclear specifically how many shares he held in the carrier.
Neither Astraeus nor FlyMe could immediately be reached for comment.
Kerry Ezard, London (29Sep06, 16:41 GMT)
FlyMe shareholder Palmi Haraldsson is to acquire 51% of UK carrier Astraeus after apparently selling his shares in the Swedish budget carrier, ATI has learned.
FlyMe announced on 25 September that it had pulled out of a deal to acquire 51% of Astraeus for £6 million ($11.4 million), but had struck a dry-lease deal with the UK operator for two Boeing 737-300 aircraft.
Swedish reports suggest Haraldsson sold his FlyMe stake after a dispute with fellow shareholders over the decision not to proceed with the Astraeus acquisition. A source close to the deal tells ATI that Haraldsson is now expected to purchase the UK carrier by himself.
Haraldsson also runs Icelandic investment firm Fons Eignarhaldsfelag, which owns Icelandic budget carrier Iceland Express. He is understood to have held the majority of FlyMe’s ‘A’ shares, although it is unclear specifically how many shares he held in the carrier.
Neither Astraeus nor FlyMe could immediately be reached for comment.
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I heard further bad reports today that Travelsphere holidays the UK's largest escorted holiday company is moving away from Astraeus for summer 07 .
I believe they used to provide over 60 exclusive charters a year to the company mainly to Brescia,Salzburg and Pula using the 737 fleet on W patterns.
I believe they used to provide over 60 exclusive charters a year to the company mainly to Brescia,Salzburg and Pula using the 737 fleet on W patterns.
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737James - Astraeus will still be doing one flight per week for Travelsphere in 2007, which will be from London Gatwick.
Astraeus has operated an extensive programme in Summer 2006, but this involved a lot of positioning from our second base at Manchester to other airports including Bristol and East Midlands. Quite frankly, it wasn’t economically viable to do so.
The other issue has been that Travelsphere’s programme tends to operate for five weeks from mid/late May to end June; and then another four weeks from mid September to mid October – that’s the market they’re in (wherein few older people tend to go away during July and August). NB. Peak season demand for the aircraft is now realistically five weeks from the last week of July to the last week of August.
So, adding all that together (five + five + four), it means that you’re only using the aircraft for a total of 14 weeks out of a 26 week summer season, which doesn’t make much sense - does it?!
Through a combination of those two factors, Astraeus have reached agreement with Travelsphere that we will do flying which is sensible for both us, and them, in Summer 2007. I'm sure it would be true to say that we maintain an excellent working relationship with Travelsphere; are pleased that we’ll still be working with them and get on very well indeed.
Moving forwards our aircraft capacity will be focussed into a year-round development & deployment of our oil and gas services; something which generates a solid annual returns for us.
I hope that helps paint a fuller picture.
Astraeus has operated an extensive programme in Summer 2006, but this involved a lot of positioning from our second base at Manchester to other airports including Bristol and East Midlands. Quite frankly, it wasn’t economically viable to do so.
The other issue has been that Travelsphere’s programme tends to operate for five weeks from mid/late May to end June; and then another four weeks from mid September to mid October – that’s the market they’re in (wherein few older people tend to go away during July and August). NB. Peak season demand for the aircraft is now realistically five weeks from the last week of July to the last week of August.
So, adding all that together (five + five + four), it means that you’re only using the aircraft for a total of 14 weeks out of a 26 week summer season, which doesn’t make much sense - does it?!
Through a combination of those two factors, Astraeus have reached agreement with Travelsphere that we will do flying which is sensible for both us, and them, in Summer 2007. I'm sure it would be true to say that we maintain an excellent working relationship with Travelsphere; are pleased that we’ll still be working with them and get on very well indeed.
Moving forwards our aircraft capacity will be focussed into a year-round development & deployment of our oil and gas services; something which generates a solid annual returns for us.
I hope that helps paint a fuller picture.
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noted the presence of two guys at EXT yesterday wearing 'FlyMe' vests looking at the Astraeus 73 which flybe are leasing (G-STRI). G-STRE is at EXT, but has major tech problems..... Guess that FlyMe will be leasing these a/c once the flybe contract finishes this year..
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Fly20,
Very eagle eyed of you, u r correct in the sense that 3 guys from Flyme were looking at G-STRI yesterday pending it's dry lease to the airline from Astraeus.
For the record, G-STRE is fully serviceable again now following a little TLC
Very eagle eyed of you, u r correct in the sense that 3 guys from Flyme were looking at G-STRI yesterday pending it's dry lease to the airline from Astraeus.
For the record, G-STRE is fully serviceable again now following a little TLC
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Thanks for clearing that up Puritan I can understand the reasons more now, although from there side must be a massive drop in capacity as i see from their brochures now using Thomsonfly and others. I have also noticed they appear to have totally pulled out of EMA next year moving everything to BHX which is a shame as a East Midlands company, i remember couple of times last year being stuck in PRG with tech aircraft and having Travelsphere group moaning at us for not taking a 737 back with defective anti icing system.
Warning Toxic!
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Flygib is out of the question, not happening. There is no provision for it in company plans and never was. I don't know why the website is still saying it is happening- it hasn't been updated for months and I think the plans are pie in the sky! It's unlikely to get off the ground in my mind at all- if it does, it will not be with Astraeus.
Rainboe
This then begs the question as to why Astraeus are allowing their name to be associated with the company (Website reference), if they have no involvement at all.
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Yes, I heard this as well from the bloke at the burger bar in Faraday Road, also heard the entire cabin crew were leaving to join Zoom Mars ltd. Have you noticed one of the 757s has a white engine nacelle, more than just a coincidence that Zoom have white bits on their logo? maybe the take-over is already happening bit by bit!