Julian Moxon/PARIS
Air France is to take over Brit Air in a move which follows the recent consolidation of its Regional Airlines, Flandre Air and Proteus subsidiaries (Flight International 3-9 October).
The French flag-carrier is to buy the 50.2% of Morlaix-based Brit Air held by major long-term shareholders by 15 October, and will make an offer for the rest, held by minority investors, by year-end.
Brit Air president Xavier Leclerc says shares will sell for around €65.45 ($58), valuing the carrier at €96 million. Leclerc will remain the company's president, but Air France will control its board.
Brit Air's operations, already franchises of Air France, will "evolve as planned", says Leclerc. "We have no need to change our network - Air France has no intention of blocking our strategic development. It made this purchase simply to ensure we weren't bought by anyone else".
The move will leave Air France with two regional airline entities: one based on Regional, with its hub at Clermont Ferrand; the other based on Brit Air, which is developing a hub at Lyon. Though Leclerc admits there is a potential conflict, Clermont Ferrand is a regional transit hub, while Air France sees Lyon as international. Air France director of networks and pricing, Bruno Matheu, has been named as head of the Regional grouping.
A key task will be to take on SAir's planned French regional, to be formed from Air Liberté, Air Littoral and AOM, although this has hit labour and cost problems. Losses are expected to be Fr1 billion ($135 million) on sales of Fr5 billion for the first six months, due to high maintenance and fuel costs.
Source: Flight International
