iDNES.cz: SkyEurope to join forces with Italy's Myair.com
in Business
Issue: 20 Oct 2008
Source:
ČTK
Prague, Oct 19 (CTK) - SkyEurope, the largest low-cost airline in Central
Europe, has signed an agreement on cooperation with Italy's Flyholding
operating air carrier Myair.com, server iDnes.cz has said.
The alliance could help SkyEurope which has been posting losses and
tackling lack of operating capital in the long term.
The companies have agreed they would cooperate on the operation of the
airline for the time being, but they do not rule out a capital
interconnection, either.
The alliance should help them to achieve lower purchasing prices of
services and fuel, for instance. The companies will also sell each other's
air tickets and use each other's planes.
Myair.com head Carlo Bernini said the alliance is a natural result for two
air carriers which have been operating separately until now, but had
similar strategies.
The companies will focus on routes in Central and Eastern Europe, Bernini
added.
SkyEurope head Jason Bitter said cooperating airlines will play a bigger
role on the European market than they did until now.
The aim is to be the fourth largest player among low-cost carriers, Bitter
said. The three largest low-cost airlines are Ryanair, easyJet and
AirBerlin.
On the European market, among companies that have merged are Spain's
Vueling and clickair, for instance. Condor, TUIfly and Germanwings in
Germany have also led talks about a merger.
Italy has been one of the key markets for SkyEurope as it flies to nine
Italian cities from Prague.
The size of SkyEurope and Myair.com as regards the number of planes is
similar. SkyEurope has 15 planes, but it will get rid of two of them for
the winter. Myair.com has 11 planes, but they are different types compared
with SkyEurope's fleet: airbuses and smaller bombardiers.
Myair.com already cooperates with Swiss company Darwin. SkyEurope is about
twice as larger in terms of passenger numbers.
The York Global Finance II fund, SkyEurope's largest shareholder, could
also help resolve the carrier's problems with lack of operating capital.
York Global Finance II, which owns 30 percent of SkyEurope's shares, said
several days ago it wants to buy the entire company. It has already
provided two loans to the firm.
SkyEurope has bases in Prague, Bratislava, Kosice and Vienna. The company's
shares are traded on the Warsaw and Vienna stock exchanges.