EasyJet has acquired GB Airways from its parent, Bland Group Limited. This follows final regulatory clearances that occurred on 18th January.The acquisition has been completed in line with the timescales outlined in October when the intention to purchase was first announced.
easyJet paid £103.5 million in cash for GB airways of which £11.5 million is held in an escrow.
Andy Harrison, Chief Executive of easyJet said:
“We are delighted to have completed this transaction and we welcome the GB Airways staff transitioning across to become part of the easyJet team. The deal enhances easyJet’s customer offering of low cost with care and convenience and will create value for shareholders.”
The acquisition of GB Airways strengthens easyJet’s position as the leading short haul airline in the UK operating around 18% of available seats.
easyJet is now able to offer its customers more routes at convenient times from two major UK airports - London Gatwick and Manchester. easyJet will now carry more passengers from Gatwick than any other airline and the GB Airways acquisition means that easyJet will be offering services from Manchester for the first time.
The integration of GB Airways into easyJet is progressing well - its routes are already on sale via easyJet.com and plans are in place to ensure a smooth transition by GB Airways to the easyJet Air Operators Certificate. As part of the integration process synergy benefits in the areas of overheads, insurance, ground handling, aircraft ownership and ancillary revenues have been identified and over the medium term easyJet will be able to drive further benefit from the acquisition as it optimises its network. In the current financial year, before exceptional costs of around £12 million, the acquisition will be earnings enhancing.