KLM subsidiary Transavia has launched a low-fare airline out of Amsterdam, going head-to-head with easyJet. Basiq Air started operating to Nice and Barcelona in December.
The move is widely seen as a response to easyJet's decision to use Amsterdam as its fourth hub. Bianca Stuijfzand, analyst at investment bank ING Barings, believes that other Dutch operators - such as Air Holland - may well follow Transavia's lead.
Unlike Buzz, KLM's UK low-cost operation, Transavia has a fleet largely made up of Boeing 737s, seen as the aircraft of choice for low-cost operators. However, analysts point out that it has proved difficult for traditional operators to reinvent themselves as low-cost carriers - Buzz being a notable example. Andrew Barker, analyst at UBS Warburg, comments that Peter Legro, Transavia's chief executive, is "more of a traditional airline manager. This is very different."
Iberia, KLM, and easyJet, meanwhile, are reported to have asked to see the prospectus for Go, the British Airways low-fare operation which is being sold off. A move by an airline for go is seen as unlikely, not to say foolish, however.
Most analysts see a non-airline trade sale as a likely option, with the UK-based Hinduja brothers, entrepreneurs active in various business fields including the Indian aviation sector, an interesting possibility. Go's chief executive, Barbara Cassani is reported to have been looking at a management buy-out.
Changes are afoot at another low-cost operator. To help sort out its troubles, loss-making Virgin Express will concentrate on operations from its Brussels hub from mid-January, and is looking to sell its Irish subsidiary.
Source: Airline Business
