Saturday 18 November 2017

Cityjet got €41m boost on day of Intro Aviation offer

Cityjet received a €41m cash injection from a unit of owner Air France on the same day it received a firm offer from Germany's Intro Aviation. Photo: Chris Ratcliffe/Bloomberg
Cityjet received a €41m cash injection from a unit of owner Air France on the same day it received a firm offer from Germany's Intro Aviation. Photo: Chris Ratcliffe/Bloomberg
John Mulligan

John Mulligan

DUBLIN-based airline Cityjet received a €41m cash injection from a unit of owner Air France on the same day it received a firm offer from Germany's Intro Aviation to buy the loss-making Irish carrier.

Filings just made available at the Companies Office show Air France Finance subscribed to 41.1 million ordinary shares in Cityjet on December 20. It paid €41.1m for the shares.

Air France-KLM announced the same day that it had received a firm offer from Intro Aviation to buy Cityjet. That sale is expected to close within days. This week, Cityjet submitted documents to the Companies Office indicating satisfaction of charges in advance of the sale being finalised.

As part of the acquisition deal, Air France and Cityjet will continue to co-operate on a commercial basis.

That partnership will see the additional development of services from Cityjet's main base at London City Airport to more destinations within Europe.

Cityjet will also continue to operate flights on behalf of Air France from Charles De Gaulle airport in Paris.

Air France-KLM hasn't revealed the price Intro Aviation is paying for Cityjet, which had been up for sale for two years.

Speaking to the Irish Independent earlier this month, Intro Aviation boss Peter Oncken said he wants to position Cityjet as an "Irish-UK standalone airline and go from there".

He said fleet renewal will be a key focus at Cityjet and that will take place next year.

Cityjet made a €209m loss in 2012 – with €185m of it accounted for by redundancy costs and exceptional items.

Irish Independent

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