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Ryanair --> Buzz

Old 31st Jan 2003, 06:35
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Ryanair --> Buzz

Speculations are over? Apparently the take over is set for 01.04.2003 making Ryanair the biggest STN operator.
BAe146 will be returned to KLM (UK???) and will be replaced by 737...
Old 31st Jan 2003, 06:39
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New just broken on the BBC.

Commiserations to Buzz pilots who now belong to the Ryanair fiefdom . . .

To stay or not to stay?

Last edited by Yarpy; 31st Jan 2003 at 07:15.
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Old 31st Jan 2003, 07:00
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Not so simple

Buzz currently lease all their 146's, presumably these go back, leaving 2 fairly tired 737-300's, about 130 pilots only a few of which are trained on the 737, and a few routes most of which are into France.

All the pilots have a Final Salary Pension Scheme, TUPE requirements will have to be met, Terms and Conditions, Seniority, Training...................what actually are Ryanair getting for their £15m?

I work for KLM in KLC uk formerly KLM uk, formerly Air UK (happy days) and am quietly pleased I never transferred to the yellow fleet.

But then who knows.................

Anyone out there wants to be an airline pilot?
Take my advice and train to be a plumber!
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Old 31st Jan 2003, 07:17
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my sympathies to buzz. RIP
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Old 31st Jan 2003, 07:27
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What an utterly appalling piece of news. buzz has a far superior image to the Irish thing; I hope that the emergent airline will maintain its standards and won't be dumbed-down to O'Leary's level.

Will they still fly to Frankfurt - or will they be forced into where-the-hell-is-Hahn? Judging by the Friday night load factors and the number of business folk carried on that route, there'll be some pretty pissd-off teddies if they end up hours away from Frankfurt at an ex-USAF base and then have a long bus ride back into the city.....

So I guess it'll be back to the Lufthansakaesebroetchen and clinical style of LH again. Waddapissa!!
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Old 31st Jan 2003, 07:28
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If buzz under Ryanair drops seat allocation, they lose me as a regular passenger Paris-London. I'll take the train. The Ryanair hoards jostling at the departure gate are something I'd rather avoid.
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Old 31st Jan 2003, 07:33
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Do 146s have to go back, can the leases be transferred? Or does Ryanair operate a "no-lease" policy?

For example, where a "type" has been selected as the preferred aircraft for a particular route/load, say Bournemouth to Murcia.
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Old 31st Jan 2003, 07:39
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There's no way it makes sense to keep the 146s.

Secondary systems for Parts and engineer/pilot training alone suggest this - then take into account the huge commitment of 100 ordered 73s with options on a further 50 a/c.

No, the 146s won't be around for long.

Hope the corresponding pilots come through this acquisition relatively unscathed - good luck to all involved.

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Old 31st Jan 2003, 07:40
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The 146 fleet leases are starting to expire. Buzz was in the process of dumping them anyway.

Since either JAA or just a change in the pax weight used in Mass and Balance calcs. they have become even more expenise to run. Sometimes catering has been left off to allow pax + fuel.


I like the buzz brand too. I liked Go's branding and unfortunately that's now orange.
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Old 31st Jan 2003, 07:45
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This is from the Ryanair website this morning. The 146s are to go back. Read on...

News Release

January 31, 2003

Ryanair reaches agreement with KLM to buy BUZZ

Ryanair Holdings plc, the No.1 low fares airline in Europe today announced that it had reached agreement with KLM to take over Buzz for a total payment of €23.9m (less than £15m) which it will fund from its own substantial cash reserves without any recourse to the markets. Highlights of this transaction include;

Ryanair will buy the entire issued share capital of Buzz for a total of €23.9m (£14.95m). Since Buzz will have €19m (£11m) of cash on completion the net cost of this purchase is less than €5m.

The acquisition will be funded from Ryanair’s existing cash deposits which presently exceed €1.05 billion, so the cost is nominal to Ryanair.

In the year to 31 March 2003 Buzz will fly just under 2m passengers, generating revenues of €140m, with a forecast double digit PBT loss.

Buzz currently operates a network of 21 routes from London Stansted to points in Germany, Holland, France and Spain, as well as two French domestic routes.

The company will operate a fleet in Summer 2003 of 6 x BAe 146 aircraft and 6 x Boeing 737-300’s.

As part of the transaction KLM have agreed to take back all of the remaining BAe146 aircraft at the end of the financial year (31/3/04). We currently plan that these will be replaced by more efficient Boeing 737’s.

The management believe that by applying Ryanair’s low fares/low cost formula, the traffic in Buzz can be increased this year from under 2m to over 4m passengers and the operating losses will be eliminated and profitability achieved.

The acquisition is expected by the Directors of Ryanair to make a positive contribution to Ryanair’s earnings per share in the coming financial year (end 30 March 2004).

This acquisition, which has been approved by the Boards of KLM and Ryanair, is expected to be completed, subject to regulatory approval on 1 April next.

Michael O’Leary, Chief Executive of Ryanair said: “The timing of this acquisition is opportunistic. Since Ryanair is growing strongly by rolling out our lowest fare services all over Europe, the last thing we need is the distraction of an acquisition. However there are a number of features of Buzz which makes this a favourable move at this time including:

- Buzz operates 21 routes from London Stansted which is Ryanair’s main UK base, thereby making it’s turnaround easy to manage.
- The acquisition of Buzz allows Ryanair to further expand at Stansted, London’s third main airport, and is a timely strategic move.
- The cost of the Buzz acquisition is nominal at a net cash cost of under €5m, which will be a bargain if we can- as we expect - turn it around in one year.
- Buzz’s operation suffers from two structural cost problems, (1) an inappropriate expensive fleet and (2) expensive congested airports. Ryanair can and will resolve both problems within 12 months.
- Ryanair will significantly rationalise Buzz’s operations by closing a number of high cost unprofitable routes and operating the remaining routes at increased frequency, lower fares and much lower costs.
- Buzz’s BAe-146 fleet will be redelivered without cost to KLM within the year, to be replaced by significantly more efficient Boeing 737’s.

“I am confident that this significant and timely rationalisation will eliminate these losses in Buzz over the coming year. With a change of aircraft fleet Buzz will be in a position to match Ryanair’s low fare, profitable growth from 2004 onwards.

“Customers of Buzz can look forward to new routes, increased frequency, larger aircraft and significantly lower air fares from 1 April onwards. We will be announcing details of this reorganisation including new routes, frequencies, lower fares and timetables before the end of February as we implement our plan to transform Buzz into a growing, profitable operation.

“Since the Buzz acquisition will not take place until 1 April at the earliest, the current Buzz losses will have no impact on Ryanair’s full year earnings forecasts. Whilst it has been our policy to avoid acquisitions, this opportunity, at this nominal cost is the type of offer which we could not refuse. The financial cost is small and the diversion of management time will be minimal since Buzz is based at our main UK base. We have a simple and effective plan to turn it around by delivering lower fares, rapid traffic growth and Ryanair type profitability once the BAe146 fleet has been returned to KLM. I am confident that Buzz will thereafter make a proportionate and significant contribution to Ryanair Holdings’ revenues and profitability.

As Ryanair is due to report Q.3 results on Tuesday morning (4 Feb’03) we are currently in a closed period, and will not be making any further comment on this matter until then. A full analysts briefing and subsequent press conference are scheduled for Tuesday morning in London for this purpose.
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Old 31st Jan 2003, 08:12
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I am gutted...

I (and many others) have said on these forums over the past couple of years that the future's yellow.

Seems this is no longer the case.

Terrible news
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Old 31st Jan 2003, 08:20
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The answer as to which airport(s) they will use is in the Ryanair press release;

"Buzz’s operation suffers from two structural cost problems, (1) an inappropriate expensive fleet and (2) expensive congested airports"
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Old 31st Jan 2003, 08:25
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Air Uk Stansted - Rip!

Now that the "end of Buzz" has been announced let us not forget that the final remnants of a very significant name in the UK airline industry will now finally disappear at Stansted. Air UK got Stansted on the road to success during the early 1990s only to be "taken apart" over the last few years through events beyond the control of its loyal staff.
Thanks for the HAPPY memories!
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Old 31st Jan 2003, 08:37
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Ryanairs recent route announcements yesterday make much more sense now:

Bye Bye Dusseldorf, hello NIEDERRHEIN
Bye Bye Amsterdam, hello MAASTRICHT
Bye Bye Toulouse, hello PAU
Bye Bye Paris, hello REIMS
Bye Bye Frankfurt, hello HAHN
Bye Bye Murcia, hello HAUGESUND (Alicante North)
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Old 31st Jan 2003, 08:56
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What terrific news. Well done Ryanair - you have mountains to climb and you continue climbing - what a dahling of the market.

Short shrift to the begrudgers I say - you know what they say about Michael O'Leary - "He wouldn't take a bite out a stone wall"

"But he'd easily sink his teeth into your arse!!!"

Watch out.

Who is next???
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Old 31st Jan 2003, 08:59
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What sad sad news...
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Old 31st Jan 2003, 09:13
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I see that the 146's will cease at the end of March. That's 2 months away. They will be replaced by B737's. I wonder when? If Ryanair are planning to convert the crew that will take a good long while, and unlikely to be half finished before the summer schedule.

Ideas? Answers on a postcard to Prune.

Why ditch AMS? Maastricht is no-way an alternative. EJ only fly to UK, except for NCE & BCN. Basiqair (Transavia) have a free reign to the Med'. The Dutch are clamouring for some real low fares to the south.

AMS might be expensive, but the pax are there. Adjust the fares accordingly and any LCA must be cheaper than the conventional opposition.

Is the STN-AMS not profitable for Buzz. EJ ex LTN seem to make it work.
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Old 31st Jan 2003, 09:14
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Would the deal have more to do with airport slots than anything else? I cannot se any other reason for an airline to buy another one then return the aircraft to the leasors.
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Old 31st Jan 2003, 09:23
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Brilliant news. Buzz never had any viable strategy anyway! More low fares on the way!!
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Old 31st Jan 2003, 09:32
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Au contraire, Buzz have a very viable strategy.

First of all they fly where I (and hundreds of others) want to go and don't deposit me on the runway at breakneck speed over 100km from where I want to be. Secondly their staff are friendly towards their "carbon based load statistics" and thirdly they are reasonably priced into the bargain.
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