SF Gate: British discount airline in talks to buy rival

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
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inancial1642EDT0247.DTL
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Friday, May 3, 2002 (AP)
British discount airline in talks to buy rival



   (05-03) 13:42 PDT (AP) --
   LONDON (Dow Jones/AP) -- British no-frills airline easyJet said Friday
that it is in advanced and exclusive talks to buy rival Go Fly Ltd.
   Any deal would be a first step in the consolidation of Europe's nascent
low-cost airline industry, and a potential blow to the traditional flag
carriers, who have suffered most from the economic downturn and fallout
from the Sept. 11 suicide hijackings.
   Fund manager Amanda Forsyth at Standard Life Investment Managers -- owner
of 1.75 percent of easyJet -- said the price tag would be between $440
million and $730 million.
   EasyJet's announcement comes just days after Chairman Stelios Haji-Ioann=
ou
-- an outspoken Greek shipping heir and founder of the airline -- revealed
his intention to quit the company at the group's annual general meeting
next April. He is set to be replaced as chairman by Colin Chandler.
   But Haji-Ioannou, along with his family, still holds more than 58 percent
of easyJet.
   EasyJet, launched in 1995, flies a fleet of 31 Boeing 737-300s to some 45
destinations. It is currently in talks with both Boeing Co. and European
rival Airbus to buy as many as 75 new aircraft.
   Go was launched by British Airways in 1998 and spun off less than a year
ago for $160. It flies a fleet of 22 B737-300s to some 23 destinations. It
also is in talks to buy more aircraft, and may be close to selecting
Airbus.

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Copyright 2002 AP

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