richardw
Topic Author
Posts: 3142
Joined: Tue May 08, 2001 3:17 am

Did EZY Pay Too Much For GT?

Tue Nov 06, 2012 9:56 pm

For summer 2013 BA plans to fly the following former GT routes from LGW

ACE, AGP, ALC, FAO, IBZ, PFO, RAK, TFS.

So it appears that EZY didn't contain competition on these routes when it bought GT, so did it pay too much for GT?

or was a foothold at MAN and some market share at LGW worth it?
 
ACEregular
Posts: 577
Joined: Mon Aug 11, 2003 8:00 am

RE: Did EZY Pay Too Much For GT?

Wed Nov 07, 2012 9:12 am

I would say it was worth it. At around the time of the purchase of GB Airways, easyJet's base at LGW was still considered secondary to its HQ at LTN. They had no base at MAN, and apparently were never going to consider such a base, due to thier contract with LPL. The purchase also gave easyJet the opportunity to evaluate the Airbus A320, and that proved to be very fruitful. To be honest I do not know why they didn't opt for the Airbus A320 from the outset. Since GB was incorporated easyJet have become the dominant airline at LGW, offering far more frequencies on the primary cities it serves. It has grown at MAN, something GT never really did. I would say it was very worth it for easyJet and also for the staff who came across.
 
AIR MALTA
Posts: 1735
Joined: Mon Sep 17, 2001 6:45 am

RE: Did EZY Pay Too Much For GT?

Wed Nov 07, 2012 10:08 am

Quoting richardw (Thread starter):
For summer 2013 BA plans to fly the following former GT routes from LGW

ACE, AGP, ALC, FAO, IBZ, PFO, RAK, TFS.

So it appears that EZY didn't contain competition on these routes when it bought GT, so did it pay too much for GT?

or was a foothold at MAN and some market share at LGW worth it?

I don't think so... EZY has grown to be the dominating airline at LGW... BA has shrinked so much that it became a bit marginal there. As for the ex GT routes served by BA, you never know how long they will stand.
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flybehubby
Posts: 44
Joined: Fri Oct 17, 2008 1:15 pm

RE: Did EZY Pay Too Much For GT?

Wed Nov 07, 2012 12:16 pm

I don't think ezy paid too much for GB.

As others have said, it gave them a huge boost at Lgw along with a way to trial the A320. It also gave them the opportunity to trial longer routes, IFE, the A321 and a range of hot food options. It also gave them a large number of slots at LGW, an experienced (and in my opinion a very friendly) number of crew with a wealth of experience and a new (and now expanding) base at MAN.

You also have to remember that GB had other offers on the table in the form of BA and MON. You also have to consider how large / profitable the EZY LGW base would be if somebody else had got their hands on GB.

With regards to BA starting services,I think competition is a good thing, passengers will now have to choice to pay more and receive a different type of service. There is a number of people who have been craving a BA type service but (in their words) been forced onto EZY flights due to lack of competition.
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