BA enters bidding war for state-owned French airline
Thursday 08 October 1998
The bid has been tabled through BA's existing French subsidiary, Air Liberte.
AOM, one of the state assets formerly owned by Credit Lyonnais, has a 10-15 per cent share of the French market and is thought to be worth pounds 120m to pounds 130m.
BA faces competition for AOM from the French flag-carrier Air France, as well as Lufthansa, Richard Branson's Virgin Express and Swissair, which last month bought a 44 per cent stake in another regional French airline, Air Littoral.
Liberalisation of the air market now means that any European Union carrier can operate services within another member state.
AOM is based at Paris Orly airport and operates 21 routes. These are largely tourist destinations in the Bahamas, Cuba, Sri Lanka, Australia and the Dominican Republic, although it also operates domestic services to Nice, Marseille, Perpignan and Toulon.
Last year it carried 3.3m passengers and made profits of F27m on sales of F3.9bn.
If the bid is successful it would increase BA's presence in the French market by more than 50 per cent.
Air Liberte operates 42 routes, of which all but four are domestic, and has a fleet of 49 aircraft.
Marc Rochet, chief executive of Air Liberte, said: "This is a carrier we can't afford to ignore, if only because AOM is one of the big operators in the French market."
The sale is one of a string of sell-offs planned by the government.
France aims to raise as much as $2bn this month by selling a stake in Caisse Nationale de Prevoyance, the country's largest life insurer, and plans to follow up with the sale of Credit Lyonnais SA, the country's fifth- largest bank.
Next year it wants to sell part of Air France and shares in the country's largest aerospace company, Aerospatiale.
- 1 Double chins could be 'cured' without surgery or dieting using new injection
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 4 Thank heavens for Louise Mensch and her foul-mouthed tweets to world leaders
- 5 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Greece elections: Greek PM Alexis Tsipras takes aim at 'neo-liberal' Europe as country gears up for prolonged austerity battle
Auschwitz liberation 70th anniversary: Woman sent to three Nazi death camps describes surviving gas chamber
Chilling drone footage captures Auschwitz ahead of 70th anniversary of liberation
Prince Philip set to be knighted by Australia: Celebrate by reading his greatest gaffes
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...