ACQUISITION

Merger and Acquisition

Merger and Acquisition

Introduction

Easy jet, the largest low cost airline in Europe an agreement with the airline GB Airways, easy jet and is acquiring from the Bland Group Limited of the whole of GB Airways - other excluding its slots at the airport of London Heathrow with a value of around 103.5 million pounds. GB Airways is an airline that specializes in traffic point-to-point, whose main base is located on the airport from London-Gatwick, GB Airways now flies to 31 destinations across southern Europe and north Africa (39 roads, including 28 from London-Gatwick, Manchester and 6 from London-Heathrow), operating under a franchise agreement with British Airways. This company has a fleet of 15 Airbus with an average age of 4.1 years an additional fleet of easy jet fleet consisting of Airbus A319.

The acquisition of GB Airways is part of the development strategy of easy Jet, and significantly strengthens the company offer orange from London-Gatwick the largest company base in the south-eastern England. In addition, GB Airways to easy jet brings a bundle of take-off slots and landing a remarkable value, and thus allow the company to continue expanding its network.. In consequence of this acquisition, easy jet will have 24% of total available slots at London-Gatwick, and carry 8 million passengers to 62 destinations. It was during the winter of 2008-2009 easy jet will complete the integration of GB Airways to its operating structures, allowing significant economies of scale.

Discussion

This acquisition which has strengthens offering considerably from London-Gatwick, the most important base for easy jet at the heart of a catchment area particularly prosperous, and this bundle of additional slots will allow us to get the most out of the airport. Both for customers and customer's easy jet of GB Airways, the agreement means choicer and lower prices. Similarly, the acquisition of GB Airways creates value for our shareholders, the operations of GB Airways will gradually adapt to the costs and margins in force at easy jet, and we expect significant synergies in terms of cost reduction and development revenue as we deploy our wings to London-Gatwick. Easy jet partnered with British Airways to customers of both companies a smooth transition. 

Impact

Most often, mergers and acquisitions are the result of an agreement between the target and the acquirer, after a process of or due diligence not, to determine a fair price for both parties. This is the case for unlisted companies, and thus a market but also in most cases for listed companies. The process has the advantage at least in theory to obtain approval of both parties.

Positive aspects of acquisitions

As previously discussed, GB airways entering collaboration with another easy jets, a for-profit firm, or government should make sure that all participating parties clearly identify and communicate their value proposition. This means they should be clear about their main interests and incentives for participating in the initiative. Often, organizations have multiple interests for engaging in an initiative. Easy jet had at least three obvious interests in the acquisition:

(1) To reduce its costs by reducing its food packaging,

(2) To reduce its waste and positively ...