The Next European LCC Merger?
Via Airscoop comes the news that SkyEurope and Myair.com have signed a Memorandum of Understanding en route to a possible merger. Several of the potential European LCC mergers under discussion this year have floundered. Today, for example, came the news that the Clickair-Vueling merger has been delayed until early 2009.
My chief concern with a SkyEurope-Myair merger is aesthetic. How on earth will SkyEurope's corporate blue and red mesh with Myair's bright red and green motif?
SkyEurope is not a strong airline (even with the money coming in from York Capital).
However, I can't see any strong rationale behind SkyEurope joining up with MyAir - it seems a bit like someone at one of the LCCs picking a partner by pointing at a list while blindfolded.
MyAir fly a mix of Airbus A320s and Bobmbardiers. SkyEurope fly Boeing 737.
My Air have their main bases in Milan and Venice, with some routes from Bari. SkyEurope do their main flying from Prague, Bratislava and Vienna. Yes, there is traffice between Italy and Vienna/Prague but it's not really a major route.
How does the partnership scheme significantly help either airline make any more money ?
Posted by: David | October 19, 2008 at 09:08
Good points. It seems like a hapless move to me as well.
Posted by: Alex Robertson Textor | October 19, 2008 at 09:54
SkyEurope have made a public announcement today (31 Oct) about due dates of 2 loans - 10 mn euros due on 10 Nov, and a further 15 mn euros due on 22 Nov - both due to the same hedge fund that owns 29.9% of the company's equity. Exactly why the announcement was made is puzzling - might be a formal stock exchange requirement, or might be something more ominous for the other shareholders
Posted by: David | October 31, 2008 at 20:42