EasyJet could shelve German plans
Thursday, 13 February 2003German airline Deutsche BA says the prospects of a takeover by EasyJet are fading after talks with pilots on a new pay structure broke down again.
'They could walk away at any time,' Deutsche BA managing director Martin Wyatt said of EasyJet, which acquired an option to buy the loss-making German carrier from British Airways in August. 'The chances that they will exercise their option are not good,' he told Reuters in an interview.
Wyatt said British Airways might revamp, close, or seek a new buyer for its German unit if the EasyJet deal died. He said he did not know if the parent company had any other potential buyers lined up.
EasyJet hopes to decide in March whether to proceed with the acquisition of the Munich-based airline but first wants to bring contracts for Deutsche BA's 200 pilots into line with those of other low-cost carriers. German pilots union Vereinigung Cockpit said today that talks on the management's pay proposals had failed.
If the option is exercised, EasyJet will pay British Airways between €30m and €39m to gain a foothold in the expanding German low-cost market.
