Rynair Buys Buzz
AMSTELVEEN, January 31, 2003 - KLM Royal Dutch Airlines today announced that they have signed an agreement for the sale of buzz, KLM Groups low cost subsidiary, to Ryanair. KLM will sell its 100% shareholding in buzz with a value to KLM of approximately 30 million.
By mutual agreement, buzz will be transferred once regulatory authorities have approved the transaction. Parties are aiming for this transfer to take place on or before April 1, 2003.
KLMs decision to sell buzz follows a strategic review of this business in light of the increasing competition in the European low cost arena over the last few months. As indicated in late October 2002, buzz was aiming for rapid growth to maintain its position as the 3rd largest player in Europe in this market segment. In order to finance the expansion, KLM has indicated that it was considering partnership approaches from a number of interested parties, which included the possibility of an outright sale.
KLM believes that attaining satisfactory profitability for a standalone buzz would have been difficult to achieve. The emergence of a significant number of new entrants in the already competitive low cost arena will continue to lead to increasing price competition. In addition, the traditional network carriers, in their response to changing consumer demands, have started to focus on the low-cost customer as well by reforming their current European product and pricing strategies. Against this background, KLMs Board of Managing Directors has concluded that the plans of buzz are best served with a link up with the Irish low cost carrier Ryanair.
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New Low cost Carrier Jet2 Starts Up
Recently Dart Group PLC announced that Channel Express would be starting up a low cost Airline operating out of Leeds Bradford. The Airline is to be called Jet2 and the first aircraft 737-300 G-CELS was painted at European at Bournemouth Airport and is currently in the new silver and red colours of Jet2. The Second 737 G-CELV has also been painted in the same colours. Jet2 launches at Leeds Bradford on Wednesday 12th February. Jet 2 has announced that it will fly to Seven European Destinations these are:
Amsterdam
Barcelona
Malaga
Palma
Nice
Bergamo
Alicnate
More news will be announced soon.
The Picture below was found in the February edition of Aviation News and has been taken by Jet2
We will keep you up to date with Jet2 news
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