NEWS : Easyjet in talks to buy Gp Fly

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Evening guys, some not so good news for competition here in Europe as the
small guys start playing big boys games. BBC TV News tonight reported that
one of the few routes where EZY and GOE fly head to head is
Edinburgh-Belfast, with EZY quoting ZERO flight prices, just government and
airport tax, on the route. Ryanair are strong competition for both here in
the UK and increasingly in Europe.

Easyjet had been recently reported as being in negotiations with Boeing and
Airbus over an order approaching 100 737NG/319 aircraft. Go had also been
reported as starting to look for newer equipment to replace their leased
fleet of 3 to 14 year old 737-300s. Ryanair had recently concluded a deal
for up to 100 737-800s over nearly ten years with Boeing.

Jim

>From bbc.co.uk/news :

Friday, 3 May, 2002, 17:29 GMT 18:29 UK
Easyjet in talks to buy rival Go

Easyjet, the UK-based low cost airline, is in talks about buying its rival
Go. If a deal goes ahead, the company would be a major player in Europe,
rivalling no frills airline Ryanair and posing a greater threat to British
Airways. It would create a substantial low-cost airline in Europe.

Easyjet has confirmed that talks have been going on for some time and has
said negotiations are at an advanced stage and are continuing. The company
said it was forced to make a statement to the London Stock Exchange when it
became aware that news of the negotiations had been leaked. The statement
was made in consultation with Go and 3i, a venture capital group that owns
43% of Go.

Easyjet said it had previously indicated that it would actively consider all
possible opportunities for further expansion in the European short haul
airline market. And the company pointed out that since the terrorist attacks
of 11 September the opportunities to expand had increased.

A 3i spokeswoman said talks began after it and the board of Go were
approached by Easyjet. "Obviously it would create a substantial low-cost
airline in Europe. If an offer is made we will consider that along with the
board of Go and other shareholders," she said.

Easyjet was set up in 1995 by the flamboyant entrepreneur and shipping
tycoon, Stelios Haji-Ioannou.

The airline's main base is at Luton airport, in Bedfordshire, 30 miles north
of central London but it also flies from London Gatwick and Liverpool. It
has 31 737-300 and 737-700 aircraft flying to 45 destinations.

Mr Haji-Ioannou recently said he was stepping down as the airline's chairman
to concentrate on expanding Easy Group into areas such as cinemas and low
cost hotels. Sir Colin Chandler was named as his replacement.

Go is based at Stansted airport, in Essex, and was set up by British Airways
in 1998. It has a 22-strong fleet of 737-300 aircraft flying to 38
destinations.

Mr Haji-Ioannou has always been fiercely critical of his rival, which he
felt was unfairly subsidised by BA. He even used the launch of Go to win
publicity for his own airline by booking seats and turning up wearing
Easyjet's trademark orange uniform.

In June last year, British Airways sold Go but the rivalry with Easyjet
appeared to be as intense as ever. Go chief executive, Barbara Cassani, an
American, was appointed by the then chief executive of British Airways, Bob
Ayling. Ms Cassani was recently named Veuve Clicquot businesswoman of the
year.

Easyjet shares ended the day up nearly 5% at 472p with Ryanair up 2% at
382.5p. BA shares were 4% lower at 229.5p.

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