NYTimes.com Article: Virgin Express Resumes Talks for SN Brussels

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Virgin Express Resumes Talks for SN Brussels

September 15, 2003
 By BLOOMBERG NEWS






By Bloomberg News

The Virgin Group is in talks with an investment bank about
a merger between Virgin Express and SN Brussels Airlines 18
months after a planned tie-up between the two Belgian
carriers failed.

"Informal discussions are at a very early stage," Virgin
Express, which is majority owned by Richard Branson's
Virgin Group, said in a statement from Brussels.

The bank recently approached Virgin Group and SN Air
Holding, the parent company of SN Brussels Airlines, to
propose a merger between the two units, according to Virgin
Express.

"The door remains open, but everything will depend on the
proposal," said Yves Panneels, a Virgin Express spokesman.

Earlier this month, Virgin Express reported a 96 percent
drop in second-quarter profit to 117,000 euros ($132,000)
because of fare cuts meant to lure customers who had been
deterred from flying by the weakness of the economy and the
threat of terrorism.

"We are working in a difficult environment, but we are
cutting costs and have a strong customer base," Mr.
Panneels said. "We are not actively seeking to merge."

SN Brussels Airlines posted a second-quarter profit of 2.9
million euros, the company's first profit since it was set
up as the successor to the bankrupt Sabena in January 2002.


Virgin Express said various intermediaries had proposed a
renewed effort to merge with SN Brussels Airlines since the
earlier bid failed in February 2002.

"Since the merger talks ended last year, we have been
contacted by several financial organizations, including
banks and consulting groups, about a merger with SN
Brussels Airlines," he said. "There has been no serious
proposal put on the table."

http://www.nytimes.com/2003/09/15/business/worldbusiness/15AIR.html?ex=1064631079&ei=1&en=9e2ba1eb1089ebcf


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