GOing Airbus

[Max Flyup]

Bloomberg business radio this morning had an item that stated that GO are about to switch to Airbus....

[Taildragger67]

Airbus in Exclusive Talks to Sell 75 Planes to Go Fly, WSJ Says

Paris, May 3 (Bloomberg) -- Airbus SAS is in exclusive talks
to sell 75 jets to low-fare airline Go Fly Ltd. for about $3
billion, the Wall Street Journal reported, citing no one.
If the sale goes through, it would represent a major victory
for the European manufacturer over archrival Boeing Co., the
Journal said. Both planemakers are vying for new orders from no-
frills carriers, the paper said.
Go, Europe's third-largest airline, currently operates about
25 Boeing 737-300s and rival Ryanair Holdings Plc placed an order
in January for as many as 150 Boeing 737s, the paper said.
The world's largest plane maker and Airbus are now battling
for the custom of EasyJet Plc, which is in talks with both
companies about 75 new planes, the paper said.

(WSJ 5-3 1)

[FlapsOne]

Go - Europe's 3rd largest airline????

[traveler]

How can you be " Europe's third-largest airline " if you have 25 airplanes ?

[traveler]

( you beat me to it ! )

[alterego]

I think they mean Europes Third largest LOW COST airline.

" Stating the obvious is not just a pilots right.......It's his responsibility!"

[LoGo]

Found this on the CNN website . . . .


Airbus 'in $3 billion Go talks'
May 3, 2002 Posted: 0718 GMT

LONDON, England -- Airbus has entered into exclusive talks to supply 75 planes to British no-frills airline Go, according to a report.

Boeing's 737 is currently the aircraft of choice among budget airlines but if Airbus can pull of an order worth an estimated $3 billion it would be a major strategic achievement, the Wall Street Journal said on Friday.

European-based Airbus is desperate to break Boeing's stranglehold on the low-cost aircraft market.

While traditional flag airlines have struggled to cope with a global economic slowdown and the events of September 11, low-cost airlines on both sides of the Atlantic are pushing ahead with rapid expansion as lower fares attract more travellers.

Go's two biggest European rivals Ryanair (RYA) and EasyJet (EZJ) expect annual passenger growth of about 25 percent. Ryanair, Europe's biggest low-cost airline, has ordered 150 737-800 aircraft from Boeing valued at about $9.7 billion.

Go's board decided on Tuesday to have exclusive talks with Airbus and plans to order a mix of A319s, A320s and A321s, the Journal reported. Airbus is 80 percent owned by the European Aeronautic Defence & Space Co (PEAD), based in France and Germany, and 20 percent by Britain's BAE Systems (BA-).

Executives at Go have said they intend to operate a single fleet type, which could mean the phasing out of its 25 Boeing Jets.

Low-cost airlines exclusively fly aircraft built by one manufacturer to keep down costs, like the training of pilots, engineering and servicing. The model was first established by the pioneer of budget airlines, Southwest Airlines of the U.S.

Go, two-thirds owned by venture capital firm 3i Group (III), with management owning the rest, could announce an order within a few weeks.

[mjenkinsblackdog]

Looks like the barbie doll made the wrong decision.:cool:

[Biggles Flies Undone]

According to Reuters, Airbus have stated that they are not exclusive talks.

[Nopax,thanx]

Why's that then??? Who else sells Airbuses?:D :D :D

[World Traveller]

Nopax, erm, BOEING. :D

Or at least some ex Singapore Airlines machines.......

WT
<just a punter>

[LUM]

GOing Airbus and GOing EZY oh my GOd :rolleyes:

[Flight Detent]

It's going to be getting tougher to get a ride in Europe soon then, when I deadhead or fly privately, I work hard to avoid airbuses, with less Boeings around, things will be more complicated nodoubt!
Cheers

[PAXboy]

This sounds like another positioning ploy from GO - as was EZY when they changed their tune recently.

Both carriers will want to keep their options, should the merger/takeover fall through.

That said, I agree with observations in the thread on the EZY/GO subject that the possibility of the merged carriers moveing away from Boeing must be remote. The costs are not just the above the line costs of machines and spare but the cost of management time to execute the change over.

So I think that this story is a non-story. Possibly Airbus induced.

[The Real Slim Shady]

We have had this before: you need GSE to handle an Airbus. To handle a 737 you need a couple of guys with a donkey cart. If you want to drive down costs the Airbus is a non starter. It just encourages Mr Boeing to drop the price per unit.

[outofsynch]

Well I think you might all be surprised at the deal Airbus is willing to offer eithr/both/combined airlines. I'll bet Airbus wont lose out on this deal at ANY cost. Even carrying the conversions costs themselves. Or supplying a dedicated Sim at STN/LTN

If you look at the long run, the cost of operating the Airbus will be significantly less than Boeing. And as for the changeover... in a combined company there will be the power of two training organisations!

The American low cost Airbus operators seem to swear by them!
So I wouldnt be willing to bet either way just yet. ;)