Rick767
Topic Author
Posts: 2613
Joined: Sun Jan 30, 2000 8:11 pm

Ryanair To Buy Buzz....

Fri Jan 31, 2003 4:48 pm

...for £15 million, and become the largest operator at Stansted. BAe 146s to be returned to KLM, 737s to be retained.

All this, according to the BBC this morning.
I used to love the smell of Jet-A in the morning...
 
Going64
Posts: 317
Joined: Tue Oct 29, 2002 8:01 pm

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 5:01 pm

Confirmed by KLM as well this morning. Price 30m Euros.
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 5:03 pm

WOW!That really surprises me.Buzz always said that the BAE146s were the main reason that their costs were high compared to other LCCs.
 
BrusselsSouth
Posts: 565
Joined: Wed Aug 15, 2001 2:12 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 5:12 pm

Full info, from the Ryanair point of view, on :

http://www.ryanair.com/press/2003/jan/ops-en-310103.html


Regards,


BrusselsSouth
 
BestWestern
Posts: 6998
Joined: Fri Sep 08, 2000 8:46 pm

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 5:55 pm

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.

You are 100 times more likely to catch a cold on a flight than an average person!
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 5:59 pm

Aww. I wanted to post this first. Oh well
----
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.

More information at the Financial Times website

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)
Anyone can fly, only the best Soar.
 
Rick767
Topic Author
Posts: 2613
Joined: Sun Jan 30, 2000 8:11 pm

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 6:21 pm

Sorry, Singapore_Air, I was up early watching BBC Breakfast News this morning, both actions are unlike me!
I used to love the smell of Jet-A in the morning...
 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 6:25 pm

hehe. Well my town is snowed in so I woke up late! No wonder  Big grin

I'm not going to school. Can't be bothered.  Laugh out loud
Anyone can fly, only the best Soar.
 
BestWestern
Posts: 6998
Joined: Fri Sep 08, 2000 8:46 pm

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 6:31 pm

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)

You are 100 times more likely to catch a cold on a flight than an average person!
 
BestWestern
Posts: 6998
Joined: Fri Sep 08, 2000 8:46 pm

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 6:39 pm

Bye Bye Dusseldorf, hello NIEDERRHEIN
Bye Bye Amsterdam, hello MAASTRICHT
Bye Bye Toulouse, hello PAU
Bye Bye Paris, hello REIMS
Bye Bye Frankfurt, hello HAHN
Bye Bye Murcia, hello HAUGESUND (Alicante North)
You are 100 times more likely to catch a cold on a flight than an average person!
 
teva
Posts: 1764
Joined: Thu Feb 01, 2001 12:31 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 6:43 pm

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
 
Guest

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 6:58 pm

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
Posts: 754
Joined: Sun Nov 18, 2001 10:24 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 7:54 pm

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
 
larspl
Posts: 351
Joined: Fri Apr 05, 2002 4:06 pm

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 8:07 pm

ANOTHER 100?????

so they ordered 200 73NG's now??
facebook.com/ddaclassicairlines
 
pressclub
Posts: 754
Joined: Sun Nov 18, 2001 10:24 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 8:13 pm

Just got the release from Ryanair and Boeing... So, it seems they buy 100 aircraft more...
 
pressclub
Posts: 754
Joined: Sun Nov 18, 2001 10:24 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 8:16 pm

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.


MAYBE START NEW TOPIC ?????
 
Demoose
Posts: 1891
Joined: Thu Mar 08, 2001 8:06 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 9:38 pm

Something I've just heard on the BBC,
apparently rumours are that bmibaby may be aquired in the near future, but didn't say who by.  Wow!

Mark
Take a ride...fly across the sky
 
backfire
Posts: 3467
Joined: Fri Oct 06, 2006 8:01 am

RE: Ryanair To Buy Buzz....

Fri Jan 31, 2003 11:44 pm

I've heard the same thing about BMIbaby, but BMI is issuing denials all round. Mind you, O'Leary told me the same about Buzz two days ago...  Insane
 
Bill
Posts: 61
Joined: Fri Jun 25, 1999 7:52 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 1:23 am


Hope that Ryanair will keep Buzz webmaster....

 
rj777
Posts: 1548
Joined: Sat Dec 02, 2000 1:47 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 1:38 am

This will really help KLM!
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 1:50 am

KLM getting rid of Buzz made a lot of sense IMO.I thought they would sooner as their business model was a mess.
 
Lekky-Man
Posts: 392
Joined: Sat Feb 16, 2002 4:40 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 1:56 am

I'm just wondering where they are likely to be flying all these aircraft!!

Surely, there can't be that many European routes on which they can compete and make a profit!!

Maybe they'll reach across the pond in the future??

LM
 
KLM exel
Posts: 40
Joined: Tue Feb 20, 2001 10:00 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 2:01 am

But will Buzz disapear as a brand or will ryanair keep Buzz as a brand. So will it be like easyjet and go. (go disapeared) or not?
 
kaitak
Posts: 8934
Joined: Wed Aug 18, 1999 5:49 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 2:05 am

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
Posts: 1537
Joined: Fri Mar 15, 2002 6:42 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 2:44 am

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?
 
dc-10 levo
Posts: 3376
Joined: Mon Nov 19, 2001 3:22 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:01 am

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
 
Thomas_Jaeger
Posts: 2200
Joined: Fri Apr 26, 2002 5:35 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:12 am

@DC-10 Levo: All BAe 146 will go back to KLM.
Swiss aviation news junkie living all over the place
 
OO-VEG
Posts: 1211
Joined: Mon Oct 02, 2000 5:31 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:22 am

Any news on who will be operating the BAe-146 for KLM??

Best option is to trade them for some other aircraft (F70, B737).
 
AMSMAN
Posts: 975
Joined: Mon Jan 28, 2002 6:24 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:31 am

Will this mean low fare flights from AMS - DUB?

I sure hope so.

Later

AMS
Aer Lingus, Proud to be Irish.
 
dc-10 levo
Posts: 3376
Joined: Mon Nov 19, 2001 3:22 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:33 am

BAe 146: To go back to KLM?
That's not fair.
So no Ryanair colours in the BAe 146?

DC-10
 
Guest

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:43 am

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 they mean all the main airport destinations such as FRA, AMS, CDG et cetera...
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 4:15 am

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 UK,I feel this is very acheivable quite quickly.
 
bmi330
Posts: 1429
Joined: Sun Nov 11, 2001 9:04 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 9:46 am

hopefully even more routes out a pik a gotta a like ryanair a little more a everyday.
 
tombezza
Posts: 81
Joined: Fri Nov 24, 2000 8:48 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 10:17 am

This is most definitely an interesting takeover, as the business plans of the two companies seemed to both compliment and contradict each other. I think we'll see a few big changes:

1) STN-AMS will not be continued by Ryanair, they won't get sucked into high-cost airports. Instead, KLM UK will probably resume this route, without a doubt if the slot offer is for real.

2) STN-CDG/FRA will not continue, at least not by buzz/Ryanair. Ryanair may well seek alternative airports for other cities too, eg. Berlin

3) The buzz brand will be lost, without any doubt. As will the on-board service, so no more nice coffee and all that jazz

4) Although Ryanair has mentioned acquiring second-hand 737-300s in the past, those inherited from buzz are not likely to stay. They have enough new 737-800s on the way to both replace the -200s and sustain rapid growth.

5) KLM bosses will figure that, as the industry is looking up in Europe, they have done the right thing. They are wrong. In fact, they were wrong when they started buzz. It wasn't, and isn't, a low-cost airline. Just like bmibaby is, buzz was doomed for failure. Old-school airlines like KLM can't run low-cost ventures. People like Mr O'Leary tear up the rule book (or borrow one from Southwest) - KLM et al tear it up, but keep chapters 4, 6 and 7 (whatever they may be). You can't teach an old dog new tricks, as they say...

A few for discussion:

Will the Bournemouth base survive? I got the distinct impression that the smaller lo-cos were clutching at straws for new bases (Cardiff??), and thought that buzz launching there was a bit of a gamble.

Are easyJet really facing turmoil? I really don't think so, although they do need to watch everything around them very carefully. They mustn't forget that their mission should always be to lower fares, just as Ryanair does (very well).

Well, night all... I'm going to hit the sack after a terrible 9 hour (and £100!) train ordeal due to my EDI-STN flight being cancelled last night! Never mind, eh?!

Tom
 
airblue
Posts: 1785
Joined: Sat May 19, 2001 9:16 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 3:05 pm

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 airports, they will sell them).

Berlin, AMS and CGD will stay until next year.

Spanish destinations will be improved.

They will cut some French destination.

 
SInGAPORE_AIR
Posts: 11619
Joined: Mon Nov 13, 2000 4:06 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 5:56 pm

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 executive, said yesterday Buzz had the wrong aircraft (BAe 146s) and it flew to too many congested, expensive airports."

Oh great. From BestWestern again,

Bye Bye Dusseldorf, hello NIEDERRHEIN
Bye Bye Amsterdam, hello MAASTRICHT
Bye Bye Toulouse, hello PAU
Bye Bye Paris, hello REIMS
Bye Bye Frankfurt, hello HAHN
Bye Bye Murcia, hello HAUGESUND (Alicante North

Anyone can fly, only the best Soar.
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 8:02 pm

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 player in the Dutch no-frills business (basiqair and Transavia). Moreover now Transavia has implemented the "scheduled charter" approach on a wide range of destinations (around 30 holiday destinations) instead of full service scheduled flights in ddition to the ever faster growing number of charter flights which follow the basiqair service (according to a recent press release by Transavia they expect to be fully no-frills by summer 2005).

STN-AMS will not be continued by Ryanair, they won't get sucked into high-cost airports. Instead, KLM UK will probably resume this route, without a doubt if the slot offer is for real.,

Let's hope so. A lot of my collegues prefer STN above LCY if they have to fly to London.
 
airblue
Posts: 1785
Joined: Sat May 19, 2001 9:16 pm

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 8:24 pm

There is also the option that Basiq Air will take the AMS-STN route.

 
vfw614
Posts: 3166
Joined: Mon Dec 10, 2001 12:34 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 9:27 pm

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 Buzz services with te 146s are not suitable for 737-800s and will face the axe.

As to the 146s, the aircraft are on leases which will expire sonner than later, so there is no question about selling them or integrating them into the KLM fleet. The lease of the ex COA 737-300s was triggered by the imminent departure of the 146s Buzz would havel oved to get rid off much earlier but good not becuase the leases were from the KLM uk era.
 
airsicknessbag
Posts: 4626
Joined: Thu Aug 17, 2000 2:45 am

RE: Ryanair To Buy Buzz....

Sat Feb 01, 2003 9:52 pm

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-name:
City name: Weeze/Laarbruch
Airport name: Niederrhein (= "Lower Rhine")
three-letter-code: LRC
FR-name: DUESSELDORF (Niederrhein)

Alright, let´s just call it LRC - easier to type than the three other options Big grin

Daniel Smile
 
BestWestern
Posts: 6998
Joined: Fri Sep 08, 2000 8:46 pm

RE: Ryanair To Buy Buzz....

Tue Feb 04, 2003 7:37 pm

Whats happened to the Bournemouth base?
You are 100 times more likely to catch a cold on a flight than an average person!
 
TriStar500
Posts: 4411
Joined: Thu Nov 04, 1999 9:50 pm

RE: Ryanair To Buy Buzz....

Tue Feb 04, 2003 8:33 pm

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" airport with decent land- and airside infrastructure (i.e. CGN). Or you can add some frills, fly AB for 29 or 39 Euo one-way from MGL, DTM, FMO etc. and still be better off than with the FR offer. At least IMO.  Smile

Hoewever, I wouldn't be surprised if FR is going to start a fare war on this route in order to compete against 4U and ST very soon.
Homer: Facts are meaningless. You could use facts to prove anything that's even remotely true!
 
paulc
Posts: 1440
Joined: Mon Mar 05, 2001 10:42 pm

RE: Ryanair To Buy Buzz....

Tue Feb 04, 2003 9:14 pm

A great shame for Bournemouth airport who are (were) planning some major terminal improvements on the back of the Buzz deal. Unfortunatley as this will not be happening the whole project must be under some sort of review. The routes planned from Bournemouth included Paris CDG and Amsterdam so they will not be implemented, especially considering that Ryanair do not fly to Paris as such.
English First, British Second, european Never!

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