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EasyJet finalises GB Airways takover
EasyJet’s £103.5 million purchase of GB Airways has been completed following final regulatory clearances.
The deal strengthens the low cost carrier’s position in the short haul sector, operating around 18% of available seats.
GB Airways, which has been sold by Cadogan Holidays parent the Bland Group, had a pre-tax profit of £2.6 million in the year ending March 2007. The airline operates 15 Airbus A320s and A321s.
EasyJet claims that following the takeover, it will carry more passengers from Gatwick than any other airline. The GB Airways acquisition means that easyJet will be offering services from Manchester for the first time.
As part of the integration process, synergy benefits in the areas of overheads, insurance, ground handling, aircraft ownership and ancillary revenues have been identified and over the medium term easyJet will be able to drive further benefit from the acquisition as it optimises its network, the airline said.
“In the current financial year, before exceptional costs of around £12 million, the acquisition will be earnings enhancing,” a statement added.
“The integration of GB Airways into easyJet is progressing well – its routes are already on sale via easyJet.com and plans are in place to ensure a smooth transition by GB Airways to the easyJet Air Operators Certificate.”
EasyJet chief executive Andy Harrison said: “We are delighted to have completed this transaction and we welcome the GB Airways staff transitioning across to become part of the easyJet team.
“The deal enhances easyJet’s customer offering of low cost with care and convenience and will create value for shareholders.”
by Phil Davies
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