The "Go" saga finally set to end shortly
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The "Go" saga finally set to end shortly
From todays FT
COMPANIES & FINANCE UK: BA expected to sell low-cost Go to 3i
Financial Times; May 21, 2001
By KEVIN DONE
British Airways is expected to announce shortly the sale of Go, its low-cost subsidiary, to 3i, the UK venture capital and private equity group in a deal worth about Pounds 100m.
The disposal is expected to follow soon after the announcement tomorrow of the airline's much improved full-year results which are likely to reveal a quadrupling in BA operating profits from Pounds 84m to about Pounds 365m.
The City will be looking in the results for the impact of the slowdown in the US economy.
BA is more dependent than any of its European rivals on the lucrative North Atlantic routes, and disappointing traffic figures for the past two months have forced financial analysts to revise downwards their profit forecasts for the coming year.
The negotiations with 3i, which entered exclusive talks with BA two months ago, are at "a very advanced stage" according to one official close to the deal. BA is being advised by Goldman Sachs and 3i by SG Hambros, the UK investment banking arm of Societe Generale. Barbara Cassani, the well-regarded Go chief executive, is expected to remain in post as part after the 3i takeover.
Ms Cassani is leading a rapid expansion at Go, as it seeks to keep pace with the growth of Ryanair and EasyJet, its larger rivals.
Go, which is headquartered at London Stansted airport, is to start flying tomorrow from a second base at Bristol International airport.
It is opening eight routes from Bristol to France, Italy, Spain and Portugal, tapping the catchment area of south-west England and south Wales as part of its plan to raise passenger volumes by 50 per cent in the coming year to 4m.
The sale of Go is part of the radical overhaul of BA's lossmaking short haul operations in Europe, which is being implemented by Rod Eddington, since he took over as chief executive a year ago from Robert Ayling, who was ousted in a boardroom coup. Mr Eddington has led the airline's financial recovery since it fell into loss under Mr Ayling for the first time since privatisation 14 years ago.
Huge sighs of relief at Go then...
COMPANIES & FINANCE UK: BA expected to sell low-cost Go to 3i
Financial Times; May 21, 2001
By KEVIN DONE
British Airways is expected to announce shortly the sale of Go, its low-cost subsidiary, to 3i, the UK venture capital and private equity group in a deal worth about Pounds 100m.
The disposal is expected to follow soon after the announcement tomorrow of the airline's much improved full-year results which are likely to reveal a quadrupling in BA operating profits from Pounds 84m to about Pounds 365m.
The City will be looking in the results for the impact of the slowdown in the US economy.
BA is more dependent than any of its European rivals on the lucrative North Atlantic routes, and disappointing traffic figures for the past two months have forced financial analysts to revise downwards their profit forecasts for the coming year.
The negotiations with 3i, which entered exclusive talks with BA two months ago, are at "a very advanced stage" according to one official close to the deal. BA is being advised by Goldman Sachs and 3i by SG Hambros, the UK investment banking arm of Societe Generale. Barbara Cassani, the well-regarded Go chief executive, is expected to remain in post as part after the 3i takeover.
Ms Cassani is leading a rapid expansion at Go, as it seeks to keep pace with the growth of Ryanair and EasyJet, its larger rivals.
Go, which is headquartered at London Stansted airport, is to start flying tomorrow from a second base at Bristol International airport.
It is opening eight routes from Bristol to France, Italy, Spain and Portugal, tapping the catchment area of south-west England and south Wales as part of its plan to raise passenger volumes by 50 per cent in the coming year to 4m.
The sale of Go is part of the radical overhaul of BA's lossmaking short haul operations in Europe, which is being implemented by Rod Eddington, since he took over as chief executive a year ago from Robert Ayling, who was ousted in a boardroom coup. Mr Eddington has led the airline's financial recovery since it fell into loss under Mr Ayling for the first time since privatisation 14 years ago.
Huge sighs of relief at Go then...
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W.r.t. prove its viability to sharp-penciled financiers..... one would have thought that Babs & Co have already been able to do just that, or why else would the financiers have brought into to it ?
It might also might be fair to assume that Go have presented a fiscal model which sits well with 3i, and one that you can be certain that 3i have independantly audited to ensure that it has a level of viability, and I'd doubt that 3i would be looking to throw their money away on a project that's doomed to failure, i.e. venture capitalists they might be, but stupid they ain't !
It might also might be fair to assume that Go have presented a fiscal model which sits well with 3i, and one that you can be certain that 3i have independantly audited to ensure that it has a level of viability, and I'd doubt that 3i would be looking to throw their money away on a project that's doomed to failure, i.e. venture capitalists they might be, but stupid they ain't !
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And they solded their % share out of Excalibur to Globespan at a very tidy profit....
3i will be there only as long as they want to be...
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Regards JB007!
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Flight Ops,Crewing and Dispatch Moderator
3i will be there only as long as they want to be...
------------------
Regards JB007!
[email protected]
Flight Ops,Crewing and Dispatch Moderator
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3i Made a huge killing with CityFlyer. I don't know what their share of the £75m sale price was, but added to the operating profits every year except the first two or three, I'd say they did rather well.
Rumour has it that CityFlyer's former MD has been employed as a consultant to 3i in respect of the GO purchase.
Rumour has it that CityFlyer's former MD has been employed as a consultant to 3i in respect of the GO purchase.
