3i switching interest from Go to EI
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3i switching interest from Go to EI
I heard a rumour today that 3i may abandon GOE for EI because they can't agree with BA on a price. Personaly I think it's a negotiating tactic, but, if anyone knows / heard anything different.
Bourne Leisure (Butlins & Haven)are waiting in the wings for go and it could get very interesting.
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You fly em we'll fill em!
Bourne Leisure (Butlins & Haven)are waiting in the wings for go and it could get very interesting.
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You fly em we'll fill em!
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A done deal ?!!!....CAA financial approval only came through this week...
Loads of time for it to go to a bag of worms yet !!!
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Regards JB007!
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Flight Ops,Crewing and Dispatch Moderator
Loads of time for it to go to a bag of worms yet !!!
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Regards JB007!
[email protected]
Flight Ops,Crewing and Dispatch Moderator
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We had all this crap at Virgin Express Ireland, "Don't worry lads just a few legal details to sort out","its all looking good", "expect an announcement on Monday" sort of thing and we all ended up on the dole.
The problem may be too many people are trying to cut their own deal. Or alternatively BA wants too much for GO. This runs up against the same problem as VEI. What actually is for sale? and does the vendor really want to sell? if it only breaks even why give away market share? Will BAA and other airport services try to shaft the new owners?
Hope it works out for the Guy's and Girls. One thing to watch out for, is if they decide to close GO then start up a new company immeadiately. Therefore giving you new contracts with revised pay and conditions. It's and old trick but still used.
If it works well then you will be given the same or enhanced pay and conditions as subject to the take-over.
Basically its a good idea to be in a union of some dicription at this stage.
Finally, when VEI closed we had been fed the same lines as you at GO. And foolishly many including myself belived that grown up people could not be lied to in this way. With hindsight I would have started making provisions to move on earlier. Instead of waiting for the axe to fall.
Good Luck
The Kid
The problem may be too many people are trying to cut their own deal. Or alternatively BA wants too much for GO. This runs up against the same problem as VEI. What actually is for sale? and does the vendor really want to sell? if it only breaks even why give away market share? Will BAA and other airport services try to shaft the new owners?
Hope it works out for the Guy's and Girls. One thing to watch out for, is if they decide to close GO then start up a new company immeadiately. Therefore giving you new contracts with revised pay and conditions. It's and old trick but still used.
If it works well then you will be given the same or enhanced pay and conditions as subject to the take-over.
Basically its a good idea to be in a union of some dicription at this stage.
Finally, when VEI closed we had been fed the same lines as you at GO. And foolishly many including myself belived that grown up people could not be lied to in this way. With hindsight I would have started making provisions to move on earlier. Instead of waiting for the axe to fall.
Good Luck
The Kid
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Wise words from The Kid...
I've been made redundant twice from airlines that are no-longer with us, one of which was when 3i sold it's share...!!!
So i'm a bit of a "Grim Reaper" when it comes to this sort of thing..
The important thing to remember is 3i are an investment company and that is exactly what they are doing...investing in something they expect to get a return from, and i'm sure they will.
But, as has been proved in the past, I would expect to go through all this again in a 3-5 year period when 3i sells it's share for a lot more than it paid for it. Thats just business...they've succeeded in what they wanted to do.
I've no-idea what percentage stake BC and her management team have in the company but will it be enough to be able to say yes or no to a proposed buyer of 3i's shares ?
Will they be able to hold on to day to day running of the company ?
The 3i purchase is a short term problem solved in my eyes.
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Regards JB007!
[email protected]
Flight Ops,Crewing and Dispatch Moderator
I've been made redundant twice from airlines that are no-longer with us, one of which was when 3i sold it's share...!!!
So i'm a bit of a "Grim Reaper" when it comes to this sort of thing..The important thing to remember is 3i are an investment company and that is exactly what they are doing...investing in something they expect to get a return from, and i'm sure they will.
But, as has been proved in the past, I would expect to go through all this again in a 3-5 year period when 3i sells it's share for a lot more than it paid for it. Thats just business...they've succeeded in what they wanted to do.
I've no-idea what percentage stake BC and her management team have in the company but will it be enough to be able to say yes or no to a proposed buyer of 3i's shares ?
Will they be able to hold on to day to day running of the company ?
The 3i purchase is a short term problem solved in my eyes.
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Regards JB007!
[email protected]
Flight Ops,Crewing and Dispatch Moderator
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As JB007 says 3i are an investment company, who made a killing with Cityflyer, but with all due respect to you guys at GO, the question is are they weighing up Go against Aer Lingus? which would be the better investment for them?
On another note Might be old news but GO announced today that they start flying from Bristol to Belfast, Edinburgh and Glasgow this September on top of what they have already.
On another note Might be old news but GO announced today that they start flying from Bristol to Belfast, Edinburgh and Glasgow this September on top of what they have already.
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So it was just a rumour.....Deal to be done next week.....maybe
http://www.ananova.com/business/story/sm_326661.html
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You fly em we'll fill em!
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My boss has very very kindly just phoned me with the news...
It should be noted 3i does have enough money to invest in both parties if it wanted to..
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Regards JB007!
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Flight Ops,Crewing and Dispatch Moderator
[This message has been edited by JB007 (edited 14 June 2001).]
It should be noted 3i does have enough money to invest in both parties if it wanted to..
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Regards JB007!
[email protected]
Flight Ops,Crewing and Dispatch Moderator
[This message has been edited by JB007 (edited 14 June 2001).]
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BA issued the following press release at 1630 BST:
£110 million GO sale agreed
British Airways has today announced the sale of its no-frills subsidiary Go Fly Limited to 3i, in a deal worth up to £110m.
Rod Eddington, British Airways’ Chief Executive, said: “The deal represents an excellent return on our initial £25 million investment in the airline three years ago. Go is an excellent airline with a fine management and workforce. As a no-frills operator, however, it simply does not fit with our full-service strategy. I am sure Barbara Cassani and her team will continue to grow this exciting business into the future.”
On completion British Airways will receive cash consideration of £80m, in addition to £20m of vendor loan notes and a potential deferred payment of £10m in the event of a subsequent sale of Go by 3i within five years.
Barbara Cassani, Go’s Chief Executive, said : “ Over the three years we have built a strong business with low prices and great service. I am delighted that the people who have made Go such a success will now co-own the airline.”
£110 million GO sale agreed
British Airways has today announced the sale of its no-frills subsidiary Go Fly Limited to 3i, in a deal worth up to £110m.
Rod Eddington, British Airways’ Chief Executive, said: “The deal represents an excellent return on our initial £25 million investment in the airline three years ago. Go is an excellent airline with a fine management and workforce. As a no-frills operator, however, it simply does not fit with our full-service strategy. I am sure Barbara Cassani and her team will continue to grow this exciting business into the future.”
On completion British Airways will receive cash consideration of £80m, in addition to £20m of vendor loan notes and a potential deferred payment of £10m in the event of a subsequent sale of Go by 3i within five years.
Barbara Cassani, Go’s Chief Executive, said : “ Over the three years we have built a strong business with low prices and great service. I am delighted that the people who have made Go such a success will now co-own the airline.”
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JB007, shouldn't you be studying? How's the flying going. When will we see you again? You aren't as aethesticlly pleasing as some but one or two of us miss you. Well actually not miss you but remember you. Good luck my old chap. Keep buying the deisel.
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Yes, now it's a done deal. Here's FT's version:
British Airways completes sale of Go to 3i for £110m
By Mark Odell in London
Published: June 14 2001 16:11GMT | Last Updated: June 14 2001 16:17GMT
British Airways on Thursday said it had finally completed the long-awaited sale of Go, its low-cost subsidiary, to 3i, the UK venture capital and private equity group, for up to £110m ($154m).
The deal has taken three months to hammer out after the UK airline entered exclusive negotiations with 3i in March, selecting the venture capitalist's bid over several others including one from KLM, the Dutch national airline.
The deal is structured as a management buy-out with 19 of Go's most senior managers investing their own money. The other 750 employees will be offered share options leaving 22.5 per cent of Go in the hands of its staff.
BA, which invested £25m in startup capital in Go three years ago, said it would receive £80m in cash and a further £20m in loan notes. 3i has also agreed to pay BA a further £10m if Go is sold on within the next five years. Barbara Cassani, Go's well-regarded chief executive, will remain at the head of airline as part of sale.
British Airways completes sale of Go to 3i for £110m
By Mark Odell in London
Published: June 14 2001 16:11GMT | Last Updated: June 14 2001 16:17GMT
British Airways on Thursday said it had finally completed the long-awaited sale of Go, its low-cost subsidiary, to 3i, the UK venture capital and private equity group, for up to £110m ($154m).
The deal has taken three months to hammer out after the UK airline entered exclusive negotiations with 3i in March, selecting the venture capitalist's bid over several others including one from KLM, the Dutch national airline.
The deal is structured as a management buy-out with 19 of Go's most senior managers investing their own money. The other 750 employees will be offered share options leaving 22.5 per cent of Go in the hands of its staff.
BA, which invested £25m in startup capital in Go three years ago, said it would receive £80m in cash and a further £20m in loan notes. 3i has also agreed to pay BA a further £10m if Go is sold on within the next five years. Barbara Cassani, Go's well-regarded chief executive, will remain at the head of airline as part of sale.
