The price of Ptas5.5 billion ($35 million), plus Ptas800 million in dividends - the equivalent of 65% of the 1998 profit - is just over half the original valuation of Ptas10 billion by financial assessor BBV.
Although 25 companies, including major European airlines and Spanish shipping companies, were targeted, a lack of interest forced the price down. A question mark over the future of government subsidies for inter-island services appears to have been a major factor in dissuading bids.
The new ownership is divided between 51% majority shareholder Hesperia, which has links with the tourist industry; two local savings banks, Caja Insular and Caja General, each with 20%; and insurance company Mapfre Guanarteme with 9%. SEPI will retain a "golden share", giving it veto rights.
Under the deal, and following agreement with the Spanish pilots' union SEPLA, Binter will be operated as an Iberia franchise.
In 1998, Binter Canarias managed a 10% net profit margin on returns of Ptas12 billion, while passenger numbers totalled 1.6 million. The current fleet is 12 ATR 72-200 turboprop aircraft.
Meanwhile, a group of local entrepreneurs, headed by Jose Ignacio Lopez de Arriotua, has indicated an interest in starting a rival airline. Although this would initially concentrate on charters, the intention is to build up a scheduled inter-island network, followed by regular flights to mainland Spain and other destinations in Europe.
The new airline, to be known as Eurocanarias, is planning to operate using the licence held by Canarias Regional, which ceased trading in January 1999.
Shareholders of the defunct company are reportedly interested in buying into Eurocanarias, which plans to operate two Boeing 737-200s.
Source: Airline Business
