British Airways to buy France's L’Avion
02.07.08
British Airways announced today that it has agreed to buy the French all business class airline L'Avion (which means airplane in French) for €68 million (£54 million). Following completion of the deal, which is expected this month, the airline it will become part of its new OpenSkies unit, with whom it already has a codeshare agreement.
OpenSkies started on June 19 a Paris Orly to New York JFK connection with a single Boeing 757, with 24 business class seats, 28 in premium economy and 30 in economy, while L'Avion operates two Boeing 757 planes with 90 seats each between Orly and New York Newark. The French airline started operations in January 2007 and has transported 65,000 passengers.
BA chief executive, Willie Walsh, said: ‘L'Avion is a successful airline that has built up a premium business between Orly and New York in a relatively short period of time. It has many synergies with OpenSkies and buying it provides OpenSkies with a larger schedule and an established customer base in the Paris-New York market.'
The privately-owned airline was one of the last remaining transatlantic all business airlines, with industry observers questioning whether it ever turned a profit or could survive in the current high fuel cost environment. It was founded by pilot Frantz Yvelin and Marc Rochet, chief executive, who formerly ran Air Liberte. The acquisition price includes L'Avion's cash reserves of €33 million (£26 million).
The combined airline will operate up to three daily flights between Paris Orly and New York JFK / Newark airports using the three Boeing 757 aircraft.
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