VIRGIN EXPRESS and SN Brussels Airlines have agreed to merge, creating a group that will control nearly 40% of the market at Brussels Zaventem Airport. Under the terms of the deal, Virgin Express will contribute 100% of its shares to a new holding company - SN Airholding II - for an agreed value of ”54 million. In exchange and following the issue of new shares in the holding company, 29.9% of that will be controlled by Virgin Express. SN Brussels, meanwhile, will be 92% owned by SN Airholding, with the remainder continuing to be held by Sabena Interservice Center. A number of conditions are attached to the deal, including clearance from competition authorities in Europe, Belgium and Germany, and the recapitalisation of Virgin Express to ensure it has positive net assets and is debt-free as at December 31. The deal is expected to be completed during the first quarter of next year.
In a statement SN Airholding chairman, Etienne Davignon, said: "We recognise that there is today a strong market demand for two different airline models: a full service airline and a low fare airline. SN Airholding will offer the capital of Europe these two models.
"By joining the forces of SN Brussels Airlines and Virgin Express, we will limit the current excess capacity on certain routes, better respond to the requirements of our clients and also help the development of Brussels Airport. The increased purchasing power combined with the network and cost synergies will result in a competitive aviation platform that is in the best interest of our customers."
Last year, SN Brussels carried 3.2 million passengers with a fleet of 38 aircraft and Virgin Express 2.7 million with 11. Their joint operating income totalled ”836 million.
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