=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/04/12/financial/= f070327D75.DTL --------------------------------------------------------------------- Tuesday, April 12, 2005 (AP) Brussels Air Completes Virgin Express Buy By RAF CASERT, Associated Press Writer (04-12) 07:03 PDT BRUSSELS, Belgium (AP) -- SN Brussels Airlines completed its purchase of Virgin Express Holdings P= LC on Tuesday. The deal is intended to improve both carriers' competitiveness in Europe's cluttered market. Low-cost airline Virgin Express and SN will join under a holding company called SN Air but retain separate corporate identities and strategies for the time being. SN will receive a majority 70.1 percent stake and Virgin Express the remaining 29.9 percent. "The goal is that Virgin plus SN will create added value. One plus one will be more than two," said SN Air chairman Etienne Davignon said during the official presentation. Virgin Express was equally optimistic. "Joining forces with SN Brussels Airlines will be good for our shareholders, our staff, our customers and for the health of the Belgian airline industry," said Virgin Express chairman David Hoare. The carriers aim to coordinate their route schedules, avoid duplication and reduce excess capacity. "We are fully confident that the two teams of SN and Virgin will work together more closely, that they will be successful with the two products," Davignon said. The two had been fierce competitors. SN has 2,100 personnel and Virgin Express 700 and there are no plans to downsize either because of the merger, he said. The deal has been seen as another step toward consolidating Europe's fragmented airline industry. SN Brussels Airlines reported a net profit in 2004 of euro1.04 million ($1.35 million) and carried 3.58 million passengers. Virgin Express had operating losses of euro3.9 million ($5.06 million) and flew 440,000 passengers. The new company will need to survive in an European market where overcapacity and intense competition has dampened prospects. The increasing cost of fuel and increase in low-cost airlines could further cloud the corporate picture. ---------------------------------------------------------------------- Copyright 2005 AP