Air Transport World

Ryanair adds buzz, base, jets, profits. (News Briefs).(Brief Article)

As Europe's flag carriers defy calls for consolidation, the low-fare sector continues to rationalize even as it grows at breakneck speed. In a matter of weeks, Ryanair unveiled plans to buy buzz, added to its 737 megaorder and announced it will open a new base in Sweden.

Ryanair's agreement to purchase KLM's unprofitable low-fare unit marks the second such deal in less than a year following easyJet's takeover of Go. Ryanair is paying [euro]23.9 million ($25.7 million) for buzz but the net price will come to less than [euro]4 million since buzz has [euro]19 million in cash. Under terms of the deal, buzz's BAe 146s will be redelivered to KLM "without cost" as buzz migrates to an all-737 fleet and is refocused away from "expensive congested airports," according to Ryanair CEO Michael O'Leary. …

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