BestWestern From Ireland, joined Sep 2000, 6431 posts, RR: 58 Reply 4, posted (10 years 3 months 3 weeks 3 days ago) and read 4449 times:
Amazing that KLM sold buzz for €5m net.... Again, no gold for the majority at the end of the low cost rainbow.
KLM have this to say...
KLM Royal Dutch Airlines today announced that they have signed an agreement for the sale of buzz, KLM Group’s low cost subsidiary, to Ryanair. KLM will sell its 100% shareholding in buzz with a value to KLM of approximately € 30 million.
By mutual agreement, buzz will be transferred once regulatory authorities have approved the transaction. Parties are aiming for this transfer to take place on or before April 1, 2003.
KLM’s decision to sell buzz follows a strategic review of this business in light of the increasing competition in the European low cost arena over the last few months. As indicated in late October 2002, buzz was aiming for rapid growth to maintain its' position as the 3rd largest player in Europe in this market segment. In order to finance the expansion, KLM has indicated that it was considering partnership approaches from a number of interested parties, which included the possibility of an outright sale.
KLM believes that attaining satisfactory profitability for a standalone buzz would have been difficult to achieve. The emergence of a significant number of new entrants in the already competitive low cost arena will continue to lead to increasing price competition. In addition, the traditional network carriers, in their response to changing consumer demands, have started to focus on the low-cost customer as well by reforming their current European product and pricing strategies. Against this background, KLM’s Board of Managing Directors has concluded that the plans of buzz are best served with a link up with the Irish low cost carrier Ryanair.
Following the study on low cost, KLM had already decided not to integrate buzz with BASIQ AIR, the low cost label of Transavia airlines. The KLM Group will therefore remain active in the low cost - low fare market through leisure carrier Transavia airlines which continues to increase its' focus on the activities under the BASIQ AIR label. BASIQ AIR currently serves 13 European destinations from Amsterdam Airport Schiphol and 2 of those from Rotterdam Airport. BASIQ AIR sells her services with direct booking through a call center and via www.basiqair.com. Apart from the flights to BASIQ AIR destinations, Transavia will continue to concentrate on other charter and scheduled flights for the leisure market, using Schiphol as its home base.
Singapore_Air From United Kingdom, joined Nov 2000, 13711 posts, RR: 21 Reply 5, posted (10 years 3 months 3 weeks 3 days ago) and read 4431 times:
Aww. I wanted to post this first. Oh well
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Ryanair says that it has reached a deal with KLM to buy UK low-cost airline Buzz for €23 900 000 / US$25 843 070. The deal would be funded by Ryanair's existing cash and Buzz has about €19 Million in cash itself, the deal only costs €5 million.
"Whilst it has been our policy to avoid acquisitions, this opportunity, at this nominal cost is the type of offer which we could not refuse. The financial cost is small and the diversion of management time will be minimal since Buzz is based at our main UK base," said Micheal O' Leary.
Information was gathered from the above hyperlinked webpages. Full information can be viewed by clicking the above hyperlinked webpages. Information was rephrased and not copied and pasted unlike some do. Currency conversion from European €uros to US Dollars courtesy of the Singapore Airlines Currency Converter (www.singaporeair.com)
BestWestern From Ireland, joined Sep 2000, 6431 posts, RR: 58 Reply 8, posted (10 years 3 months 3 weeks 3 days ago) and read 4386 times:
Following last years growth, this year we can expect significant consolidation and bankruptcies in the low cost arena. Only two of the carriers are profitable, Ryanair and EasyJet (even easyJet is struggling this winter)
Teva From France, joined Jan 2001, 1868 posts, RR: 17 Reply 10, posted (10 years 3 months 3 weeks 3 days ago) and read 4388 times:
I am very sad to see the end of Buzz, because I really enjoyed flying with them.
I hope Ryanair will keep from Buzz their real coffee at 1.50 GBP.
It will be intersting to see if Ryanair will keep the STN-CDG flt, as they call Beauvais their Paris airport.
For me, this CDG STN is very convenient, and performs well. I would be very sad to loose it (Buzz is the only airline on this route.)
Teva
Ecoute les orgues, Elles jouent pour toi...C'est le requiem pour un con
Capt.Picard From , joined Dec 1969, posts, RR: Reply 11, posted (10 years 3 months 3 weeks 2 days 23 hours ago) and read 4372 times:
Mmmm, it will be interesting to see what happens to the route network. Buzz's inflight service was always of better quality (in terms of the coffee - I agree, and the somewhat better breakfast options.
Given cost-cutting is a religion for Ryanair, I think you can probably wave bye-bye to a lot of 'buzz' things. For those of you who do fly Ryanair, don't buy the tea/coffee - probably one of the most disgusting I have had since flying with Alitalia (ironic, given the latter was an Italian carrier!)
Pressclub From Belgium, joined Nov 2001, 773 posts, RR: 5 Reply 12, posted (10 years 3 months 3 weeks 2 days 22 hours ago) and read 4332 times:
Boeing just anounced in Dublin an order from Ryanair for as many as 100 jetliners 737 worht 6 billion. With this order Ryanair will end up with a fleet of 250 B 737-800 aircraft.
Pressclub From Belgium, joined Nov 2001, 773 posts, RR: 5 Reply 15, posted (10 years 3 months 3 weeks 2 days 22 hours ago) and read 4284 times:
LONDON, Jan 31 (Reuters) - Irish no-frills airline Ryanair Holdings Plc said on Friday it would
order 22 more Boeing (BA.N) 737-800 aircraft and would increase its options by a further 78, in a
deal valued at $6 billion at catalogue prices.
"This means the European low-fair carrier has committed to 250 737-800s since January 2002,"
Ryanair and Boeing said in a joint statement. "Of those commitments, 125 are orders and 125 are
options".
Ryanair said the 22 nearly-ordered jets were scheduled for delivery in 2004 and 2005.
(C) Reuters Limited 2003.
Rj777 From United States of America, joined Dec 2000, 1471 posts, RR: 2 Reply 19, posted (10 years 3 months 3 weeks 2 days 17 hours ago) and read 4004 times:
Kaitak From Ireland, joined Aug 1999, 11952 posts, RR: 37 Reply 23, posted (10 years 3 months 3 weeks 2 days 16 hours ago) and read 3968 times:
The one thing that strikes me about Buzz is that they never seemed to have achieved the stellar success that FR, U2 or even Go achieved. After three years, what did they have to show for themselves: 146s and a handful of 737s. Ryanair bought it for EUR30m, yet FR's market capitalisation is EUR4bn+. Obviously FR has been around for a bit longer, but it just seems to me that Buzz could have made a lot more of its business than it actually did.
And Low Cost 146s; my definition of depression. I don't much like Ryanair, but 737s - well, you can't go much wrong, can you.
Lapper From United Kingdom, joined Mar 2002, 1507 posts, RR: 8 Reply 24, posted (10 years 3 months 3 weeks 2 days 16 hours ago) and read 3926 times:
I read in the Standard tonight that KLM get some of FRs Stansted slots in the bargain. What would they use those for, start up STN-AMS again?
25 DC-10 Levo: I hope Ryanair do buy Buzz! I't be great if we had Ryanair 146's in Ryanair colours flying round the UK. DC-10
26 Thomas_Jaeger: @DC-10 Levo: All BAe 146 will go back to KLM.
27 OO-VEG: Any news on who will be operating the BAe-146 for KLM?? Best option is to trade them for some other aircraft (F70, B737).
28 AMSMAN: Will this mean low fare flights from AMS - DUB? I sure hope so. Later AMS
29 DC-10 Levo: BAe 146: To go back to KLM? That's not fair. So no Ryanair colours in the BAe 146? DC-10
30 Capt.Picard: AMSMAN I doubt it, unfortunately, as FR don't use main airports, and they have already annouced they will be dropping some buzz routes - I presume the
31 Donder10: I expect DUB-HHN/BGY(Milan) and a Dutch route in the next 12 months. FR are aiming to double DUB numbers.Given the large amount of flights just to the
32 Bmi330: hopefully even more routes out a pik a gotta a like ryanair a little more a everyday.
33 Tombezza: This is most definitely an interesting takeover, as the business plans of the two companies seemed to both compliment and contradict each other. I thi
34 Airblue: Likely to happen in next months: FRA and DUS will be replaced with more flights to HHN and NIEDERRHEIN. (since both DUS and FRA are slots restricted a
35 Singapore_Air: A very good article in the respected Financial Times: KLM throws in the towel on no-frills sector Including.. "As Michael O'Leary, Ryanair chief execu
36 LJ: The headline "KLM throws in the towel on no-frills sector" is of course wrong. As the KLM press release correctly puts it KLM continues to be a big pl
37 Airblue: There is also the option that Basiq Air will take the AMS-STN route.
38 Vfw614: According to Dutch media, KLM will keep the slots at DUS, FRA, CDG and AMS, so these routes will be discontinued. Also some of the French airports Buz
39 Airsicknessbag: Oh, great introductory offers to Niederrhein: 38.99 GBP one-way. By the way, let´s have a look at that new airport, its name, abbreviation and FR-nam
40 BestWestern: Whats happened to the Bournemouth base?
41 TriStar500: Now 38.99GPB one-way for LRC-STN is not very exciting, since you can get for a fraction of these costs (starting at 19 Euro) to STN from a "real" airp
42 Paulc: A great shame for Bournemouth airport who are (were) planning some major terminal improvements on the back of the Buzz deal. Unfortunatley as this wil
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