NYTimes.com Article: SN Brussels, Virgin Express Back in Talks

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SN Brussels, Virgin Express Back in Talks

February 20, 2004
 By THE ASSOCIATED PRESS





Filed at 2:11 p.m. ET

BRUSSELS, Belgium (AP) -- SN Brussels Airlines, the
scaled-down successor to Belgian flag carrier Sabena, and
low-cost, Brussels-based rival Virgin Express are back in
merger talks a year after their partnership agreement
expired, airline officials said Friday.

Both sides said the talks were well-advanced, with an
announcement possible in a couple months.

A Virgin Express spokesman confirmed comments Thursday by
British owner Richard Branson, who told reporters talks
were ``reasonably advanced.''

Analysts said a takeover would make sense for both, with
Brussels too small for two airlines to flourish. ``Neither
is really that profitable,'' says Nick van den Brul,
airline analyst for BNP Paribas in Brussels. ``This is a
reasonable consolidation.''

The two tried once before to merge, in 2001, but talks
collapsed over issues of control. They settled on a
partnership that expired in March 2003 and have been
competing ever since.

SN has been gaining ground. In the past 12 months, it has
increased bookings by 23 percent. Although it lost euro36.8
million ($47 million) in 2002, it is expected to turn a
slight profit in 2003 when it release figures in mid-March.


Virgin Express eked out a profit of euro2.6 million ($3.3
million) in 2002. Full-year 2003 results also will be
released in March.

http://www.nytimes.com/aponline/business/AP-Belgium-Airlines.html?ex=1078308947&ei=1&en=5832d93219d3651c


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