EasyJet”s purchase of GB Airways this morning for ”103.5m ($212.3m) will see the low-cost carrier account for 24% of London Gatwick slots.
The news came on a frenetic morning that also saw former British Airways (BA) franchise Loganair, depart the stable, while Bmed”s exit to bmi is due to formally occur in two days time.
EasyJet will now acquire GB Airways” nine A320 and 6 A321 aircraft operating 39 routes ” 28 from Gatwick, 6 from Manchester and five from Heathrow.
The low-cost carrier will not take up the Heathrow slots ” they clearly do not fit into easyJet”s business model ” but it is unclear what will happen to them.
BA says it will now start services to Faro and Malaga from Heathrow and from Gatwick to Faro, Gibraltar, Ibiza, Malaga, Palma and Tunis, many of which are classic GB Airways routes, but a spokeswoman declined to say whether its former franchise slots would simply transfer to BA. GB Airways had four daily slots at Heathrow, but five routes as one rotation operated to Marrakesh via Casablanca.
EasyJet noted in a statement that: ”The GB Airways acquisition is consistent with our expansion strategy and adds valuable take off and landing slots at Gatwick. By winter 2008/09, GB Airways will be fully consolidated into the easyJet business model, releasing [unspecified] cost savings.”
The Luton-based airline also said it would cooperate with BA during the transition period, with GB Airways continuing to fly all routes under the BA brand until 29 March next year.
Despite easyJet”s understandable optimism, the fact that it could now control 24% of Gatwick slots will trigger a referral to the relevant authorities.
”There are several areas where we need to consider the competition implication,” an easyJet spokeswoman told ABTN, ”and this will be carried out by the relevant authorities.
”GB Airways will continue to the end of March, followed by their aircraft being rebranded as easyJet. At that point, we will identify and determine what we will do.”
EasyJet has referred to ”releasing cost savings,” and there are routes to Spain in particular, that would appear to overlap. What any route or employment implications are, as yet, unclear.
Earlier today, British Airways CEO Willie Walsh, said: ”UK Franchises have outlived their purpose. EasyJet has made an offer to buy GB Airways and this has enabled us to end the franchise agreement early.
”We had an option to buy GB Airways, but we rejected it.”