GO NOW OWNED KY KLM?
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Interesting times....here's my 2p worth.
Go have a strong brand name and, by all accts, are a well run,happy outfit...and now making a profit...good operation..why spoil it?
IMHO Buzz, on the other hand, have the wrong a/c (146s)for their routes- (they only have 2 737s), less flexible crewing agreements, and are not run with the same flair or dedication in Management, Ops or Eng areas.
A Go management buy out or 3i team buy out would be wasting money buying Buzz. They would do better to buy Go and.... then let the natural course of events take care of Buzz....many of the good Buzz people (and there are lots of them..) would naturally join Go anyway.
Go have a strong brand name and, by all accts, are a well run,happy outfit...and now making a profit...good operation..why spoil it?
IMHO Buzz, on the other hand, have the wrong a/c (146s)for their routes- (they only have 2 737s), less flexible crewing agreements, and are not run with the same flair or dedication in Management, Ops or Eng areas.
A Go management buy out or 3i team buy out would be wasting money buying Buzz. They would do better to buy Go and.... then let the natural course of events take care of Buzz....many of the good Buzz people (and there are lots of them..) would naturally join Go anyway.
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Just a thought - wasn't it 3i that owned a large stake in BCal - and forced the merger with BA rather than SAS as Adam Thompson and his team wanted? I recall they made a few hundred million out of a comparatively small original investment ...
[This message has been edited by The Guvnor (edited 11 March 2001).]
[This message has been edited by The Guvnor (edited 11 March 2001).]
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3i were also the main backing behind Excalibur Airways before selling to Globespan.
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Hear All...See All...Say Now't.
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Hear All...See All...Say Now't.
[email protected]
(I'm away for a while!)
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I think it needs stating again, since it gets lost in the arguments, Buzz is not a company. It is a brand name, the crews are employed by KLMuk, and the aircraft clearly state on the side "operated by KLMuk". Any deal would involve all the KLMuk crews, since the pilots have a seniority list, and a "last in - first out" redundancy agreement.
Makes both selling it off or closing it down an interesting exercise.
[This message has been edited by Herod (edited 11 March 2001).]
[This message has been edited by Herod (edited 11 March 2001).]
Makes both selling it off or closing it down an interesting exercise.
[This message has been edited by Herod (edited 11 March 2001).]
[This message has been edited by Herod (edited 11 March 2001).]
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Don't know if it is good news or what, but here's the latest from the FT about the GO saga.
COMPANIES & FINANCE UK: KLM snubbed as BA holds Go talks with 3i TRANSPORT UK VENTURE CAPITAL GROUP BELIEVED TO HAVE BID Pounds 100M FOR LOW COST CARRIER:
Financial Times; Mar 14, 2001
By KATHARINE CAMPBELL and KEVIN DONE
British Airways has entered into exclusive negotiations with 3i, the UK venture capital and private equity group, for the sale of Go, its low cost subsidiary.
It is understood that the bid from 3i values Go at around Pounds 100m.
3i has previously been involved in the airline sector with its highly successful investment in 1991 in CityFlyer Express, which operated as a BA franchisee and was taken over by BA for Pounds 75m in late 1999.
BA's decision to grant exclusivity to 3i is a blow to KLM, the Dutch national airline, which submitted a conditional offer two weeks ago aimed at merging Go with Buzz, its own low cost subsidiary. A BA deal with 3i would raise questions over the future of Buzz, which operates from London Stansted airport in direct competition with Go and Ryanair.
KLM has been reviewing its engagement in the highly competitive but fast growing low cost sector in the face of continuing losses at Buzz. It said recently that it could well be forced to pull out of the business if it failed in its bid to merge the operation with Go. KLM believes Buzz is too small to achieve the scale needed to compete with the likes of Ryanair and EasyJet, the leading low cost carriers in Europe, through organic growth.
Buzz, which started flying 15 months ago, has a fleet of 10 aircraft and a network of 18 destinations in its summer schedule.
Separately KLM launched another low cost experiment in December with the start of Basiq Air, a no-frills service offered by Transavia, its charter airline subsidiary, on a small number of routes out of Amsterdam.
KLM's approach to BA was made jointly with Carlyle group, the US private equity firm, which was seeking to add a stake in Go to the growing portfolio of its European fund. The negotiations with KLM and Carlyle foundered partly on the valuation of Go, but also on BA concerns about the complexity of the KLM proposals.
BA is seeking to complete the sale of Go by the end of this month as part of its efforts to reorganise its fragmented and loss-making shorthaul operations in Europe.
It is understood that BA feared that KLM's proposed merger of Go and Buzz could run into problems with the competition authorities. The deal could also have faced the issue of foreign control and ownership depending on the size of Carlyle's stake. Under European Union regulations non-EU entities are not allowed to own more than 49 per cent of an EU airline.
The Dutch flag carrier was the only airline remaining on the shortlist of potential buyers for Go, which BA put up for sale last November.
BA is being advised by Goldman Sachs.
Copyright: The Financial Times Limited
COMPANIES & FINANCE UK: KLM snubbed as BA holds Go talks with 3i TRANSPORT UK VENTURE CAPITAL GROUP BELIEVED TO HAVE BID Pounds 100M FOR LOW COST CARRIER:
Financial Times; Mar 14, 2001
By KATHARINE CAMPBELL and KEVIN DONE
British Airways has entered into exclusive negotiations with 3i, the UK venture capital and private equity group, for the sale of Go, its low cost subsidiary.
It is understood that the bid from 3i values Go at around Pounds 100m.
3i has previously been involved in the airline sector with its highly successful investment in 1991 in CityFlyer Express, which operated as a BA franchisee and was taken over by BA for Pounds 75m in late 1999.
BA's decision to grant exclusivity to 3i is a blow to KLM, the Dutch national airline, which submitted a conditional offer two weeks ago aimed at merging Go with Buzz, its own low cost subsidiary. A BA deal with 3i would raise questions over the future of Buzz, which operates from London Stansted airport in direct competition with Go and Ryanair.
KLM has been reviewing its engagement in the highly competitive but fast growing low cost sector in the face of continuing losses at Buzz. It said recently that it could well be forced to pull out of the business if it failed in its bid to merge the operation with Go. KLM believes Buzz is too small to achieve the scale needed to compete with the likes of Ryanair and EasyJet, the leading low cost carriers in Europe, through organic growth.
Buzz, which started flying 15 months ago, has a fleet of 10 aircraft and a network of 18 destinations in its summer schedule.
Separately KLM launched another low cost experiment in December with the start of Basiq Air, a no-frills service offered by Transavia, its charter airline subsidiary, on a small number of routes out of Amsterdam.
KLM's approach to BA was made jointly with Carlyle group, the US private equity firm, which was seeking to add a stake in Go to the growing portfolio of its European fund. The negotiations with KLM and Carlyle foundered partly on the valuation of Go, but also on BA concerns about the complexity of the KLM proposals.
BA is seeking to complete the sale of Go by the end of this month as part of its efforts to reorganise its fragmented and loss-making shorthaul operations in Europe.
It is understood that BA feared that KLM's proposed merger of Go and Buzz could run into problems with the competition authorities. The deal could also have faced the issue of foreign control and ownership depending on the size of Carlyle's stake. Under European Union regulations non-EU entities are not allowed to own more than 49 per cent of an EU airline.
The Dutch flag carrier was the only airline remaining on the shortlist of potential buyers for Go, which BA put up for sale last November.
BA is being advised by Goldman Sachs.
Copyright: The Financial Times Limited
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Lord F, interesting that KLM should push out this statement this morning!
"Dutch airline KLM said on Wednesday that it has decided not to submit a formal bid for U.K. low-cost airline Go, a unit of British Airways. KLM spokesman Bart Koster said that KLM had presented BA with a non-conditional proposal but said that BA had rejected this. Koster also said there were regulatory issues that would have obstructed a deal. KLM would have merged Go with Buzz, its own low-cost airline that also operates from London's Stansted airport. Koster declined to say how much KLM was willing to pay for Go. He said KLM still is reviewing its own position in the low-cost carrier segment. "All options are still open, except for one," Koster said. In Amsterdam, KLM shares were down 2.9 percent at €24.75."
[This message has been edited by newswatcher (edited 14 March 2001).]
"Dutch airline KLM said on Wednesday that it has decided not to submit a formal bid for U.K. low-cost airline Go, a unit of British Airways. KLM spokesman Bart Koster said that KLM had presented BA with a non-conditional proposal but said that BA had rejected this. Koster also said there were regulatory issues that would have obstructed a deal. KLM would have merged Go with Buzz, its own low-cost airline that also operates from London's Stansted airport. Koster declined to say how much KLM was willing to pay for Go. He said KLM still is reviewing its own position in the low-cost carrier segment. "All options are still open, except for one," Koster said. In Amsterdam, KLM shares were down 2.9 percent at €24.75."
[This message has been edited by newswatcher (edited 14 March 2001).]
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British Airways says the process for the disposal of its low-cost airline Go remains firmly on track despite the decision of KLM Royal Dutch Airlines not to pursue a bid.
KLM spokesman Bart Koster had earlier revealed that the airline had submitted a non-binding offer, but BA had considered it insufficient.
Koster said KLM had not wished to raise the bid, but declined to say how much it had been worth. He also said the Dutch carrier had been concerned about regulatory complications, especially in terms of competition.
Despite the departure of the bidder regarded by sector analysts to be the favourite to land Go, a BA spokesman says: "We expect to conclude the sale by the end of this month or thereabouts.
"We're not saying how many people we are still talking with or who they are, but the process is right on track."
Analysts do not expect Go to be sold for much more than £100 million. Shortly after news of KLM's decision not to bid became public, shares in BA were down 5¾p at 333¼p.
Koster says KLM has not yet decided on the future of its own low-budget airline Buzz.
Following remarks last month by KLM chief financial officer Rob Abrahamsen that the airline was not ruling out the sale of Buzz if a bid for Go were to fail, Koster says KLM is still keeping its options open.
"We will now intensify our study into our future in the low-budget market," Koster says, adding it is still "business as usual for Buzz".
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You fly em we'll fill em!
KLM spokesman Bart Koster had earlier revealed that the airline had submitted a non-binding offer, but BA had considered it insufficient.
Koster said KLM had not wished to raise the bid, but declined to say how much it had been worth. He also said the Dutch carrier had been concerned about regulatory complications, especially in terms of competition.
Despite the departure of the bidder regarded by sector analysts to be the favourite to land Go, a BA spokesman says: "We expect to conclude the sale by the end of this month or thereabouts.
"We're not saying how many people we are still talking with or who they are, but the process is right on track."
Analysts do not expect Go to be sold for much more than £100 million. Shortly after news of KLM's decision not to bid became public, shares in BA were down 5¾p at 333¼p.
Koster says KLM has not yet decided on the future of its own low-budget airline Buzz.
Following remarks last month by KLM chief financial officer Rob Abrahamsen that the airline was not ruling out the sale of Buzz if a bid for Go were to fail, Koster says KLM is still keeping its options open.
"We will now intensify our study into our future in the low-budget market," Koster says, adding it is still "business as usual for Buzz".
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You fly em we'll fill em!
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Interesting to read today that BA have given'exclusivity' to the 3i consortium to negotiate the sale. That seems to exclude all other bidders so the KLM rumour is definitely dead!!! The article also claims that BC is part of the 3i bid, so that scuppers the knocker who claimed she has no faith in the outfit. Watch out O'Leary!
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Hmmm... weren't various of Tone;s mates given 'exclusivity' to negotiate deals on the Dome? Look what happened with them!
Still, at least 3i is a kosher operation ... but as with all VenCap companies, it's a long drawn out process and they have a habit of dumping all but a very, very few deals...
It's not over until BC sings! (and no, I'm not in any way suggesting that she's fat!)
Still, at least 3i is a kosher operation ... but as with all VenCap companies, it's a long drawn out process and they have a habit of dumping all but a very, very few deals...
It's not over until BC sings! (and no, I'm not in any way suggesting that she's fat!)
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This should set the record straight....
KLM pulls out of the running for Go
Maria Wagland, London (14Mar01, 15:21 GMT, 301 words)
Netherlands carrier KLM has pulled out of the running to buy British Airways’ (BA) low-cost subsidiary Go, which it had been considering acquiring and merging with its own low-cost subsidiary Buzz.
KLM had previously confirmed it was considering all its options regarding its own low cost ambitions and that these included evaluating a bid for Go. However the carrier has been denying speculation that it had made a firm offer for Go and a spokesman for the Dutch carrier now says: “We have decided that we do not want to put a final offer in for Go at this moment.”
He cites regulatory problems as a factor for the airline not moving ahead with its interest, arguing that the transaction had “complexities” to do with “regulatory rules and authorities”.
BA, which put its low-cost subsidiary on the market last November, would not comment on how many potential bidders remain in the process, but KLM was believed to have been the only airline still showing an interest. A BA spokeswoman says that the airline has been planning from to find a buyer for Go before the end of the financial year and hopes to keep the sale on track. “We are in the middle of the sale process and hope to have it completed by the end of the month.”
Meanwhile KLM says it is business as usual for its own low-cost subsidiary Buzz, but that it is continuing to evaluate all its options for the carrier. “Buzz will continue to operate as a respectable low-cost carrier from the much sought after base at London Stansted. We are reviewing all options for KLM to continue its low-cost group,” says a spokesman, noting it has a range of options, from trying to find another partner to withdrawing altogether from the low cost sector.
Source: Air Transport Intelligence news
KLM pulls out of the running for Go
Maria Wagland, London (14Mar01, 15:21 GMT, 301 words)
Netherlands carrier KLM has pulled out of the running to buy British Airways’ (BA) low-cost subsidiary Go, which it had been considering acquiring and merging with its own low-cost subsidiary Buzz.
KLM had previously confirmed it was considering all its options regarding its own low cost ambitions and that these included evaluating a bid for Go. However the carrier has been denying speculation that it had made a firm offer for Go and a spokesman for the Dutch carrier now says: “We have decided that we do not want to put a final offer in for Go at this moment.”
He cites regulatory problems as a factor for the airline not moving ahead with its interest, arguing that the transaction had “complexities” to do with “regulatory rules and authorities”.
BA, which put its low-cost subsidiary on the market last November, would not comment on how many potential bidders remain in the process, but KLM was believed to have been the only airline still showing an interest. A BA spokeswoman says that the airline has been planning from to find a buyer for Go before the end of the financial year and hopes to keep the sale on track. “We are in the middle of the sale process and hope to have it completed by the end of the month.”
Meanwhile KLM says it is business as usual for its own low-cost subsidiary Buzz, but that it is continuing to evaluate all its options for the carrier. “Buzz will continue to operate as a respectable low-cost carrier from the much sought after base at London Stansted. We are reviewing all options for KLM to continue its low-cost group,” says a spokesman, noting it has a range of options, from trying to find another partner to withdrawing altogether from the low cost sector.
Source: Air Transport Intelligence news
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So it's all down to 3iii.
Daily Telegraph 15 March:
http://www.telegraph.co.uk/et?ac=000...15/cnii15.html
Daily Telegraph 15 March:
http://www.telegraph.co.uk/et?ac=000...15/cnii15.html
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Oh I see, now KLM have supposedly pulled out and Buzz may now be going down people look at Go as a company to work for again. All the ribbing that the KLM guys have been giving the Go guys may now be blowing up in their faces.So I think that the yellow paint supposedly on order for Go's aircraft is going to be swapped for more multi colour paint to aid a fleet expansion.
It's time to take on Easyjet and Ryanair who have had it too good for too long.
It's time to take on Easyjet and Ryanair who have had it too good for too long.
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<font face="Verdana, Arial, Helvetica" size="2">EasyJet takes it easy over Go deal
by Peter Cunliffe, Daily Mail
BUDGET airline easyJet is not worried by the imminent £100m sale of rival Go to venture capitalist 3i by British Airways. 'We thought about buying it, but not for very long. We know how painful acquisitions can be. Why tempt fate?' said chief executive Ray Webster.
The shares fell 7p to 403 1/2p, against 310p when chairman Stelios Haji-Ioannou floated them in November. Schroder Salomon Smith Barney rates easyJet a 'buy' and has a 500p price target. </font>
by Peter Cunliffe, Daily Mail
BUDGET airline easyJet is not worried by the imminent £100m sale of rival Go to venture capitalist 3i by British Airways. 'We thought about buying it, but not for very long. We know how painful acquisitions can be. Why tempt fate?' said chief executive Ray Webster.
The shares fell 7p to 403 1/2p, against 310p when chairman Stelios Haji-Ioannou floated them in November. Schroder Salomon Smith Barney rates easyJet a 'buy' and has a 500p price target. </font>
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2XL,
Tunneler is correct, the 146 is G-ZAPO, leased from Titan to operate BFS-GLA and back for Go. The service operates with a Go flight number, and has "go now" titles on the fuselage. I understand a 737 will be placed on the route once Go have the aircraft available.
Tunneler is correct, the 146 is G-ZAPO, leased from Titan to operate BFS-GLA and back for Go. The service operates with a Go flight number, and has "go now" titles on the fuselage. I understand a 737 will be placed on the route once Go have the aircraft available.
