Easyjet Acquires GB Airways

No-frills airline Easyjet has today announced it has acquired UK-based GB Airways in a deal thought to be worth in excess of £103 million which will see the company expand its fleet over the next few months.

The low cost airline announced today that it will acquire the assets and business of GB Airways, excluding its Heathrow operation, in a move that will see Easyjet expand their current reach and the overall size of their business.

Easyjet will acquire landing and take-off slots at Gatwick and Manchester through its takeover of GB, which will enable it to run more flights more frequently throughout these major airports. Presently GB operates 39 routes, of which 34 will be acquired by Easyjet as a result of the move.

Additionally it will acquire the GB Airways BA franchise, which allows it to sell British Airways branded flights to North Africa and the South of Europe until the end of the first quarter or next year, a deal that provides significant revenues for the company.

It is thought that the franchising agreement will now be allowed to run its course without the option for renewal, with BA considering running its own flights on the previous GB routes as of that time.

Easyjet will also acquire the fifteen strong Airbus fleet of GB, which the company says will help it cement its positioning within Gatwick, its main business operating centre.

The takeover is expected to be fully completed and systems wholly integrated over the course of the next eight weeks, as the company begins changeover to the Easyjet business.

The move follows some months of uncertainty as to whether or not GB Airways would be bought out, with BA also offered the chance to acquire its assets prior to today’s move by Easyjet.

Story link: Easyjet Acquires GB Airways