UK no-frills airline EasyJet has agreed to buy GB Airways for £103.5m sterling in cash.
EasyJet has bought the airline from Bland Group, a transport and tourism company, while the deal excludes the right to GB Airways' slots at London's Heathrow airport, according to a statement.
'This is an acquisition which both strengthens our customer offering at London Gatwick, our biggest base with an attractive catchment area, and allows us to fully capitalise on the potential of the airport through a larger number of slots,' EasyJet CEO Andy Harrison said.
Subject to regulatory approval, the deal was expected to be completed by January 31, 2008.
GB Airways flies from England to destinations across southern Europe and north Africa under a franchise agreement with British Airways.
British Airways said it would now end its deal with GB Airways from March 2008.
'UK franchises have outlived their purpose,' BA CEO Willie Walsh said in a separate statement.
'EasyJet has made an offer to buy GB Airways and this has enabled us to end the franchise agreement early. We had an option to buy GB Airways but we rejected it,' he added.
