CITYJET to merge with Spanish carrier Air Nostrum

Tabnabs

DUBLIN-BASED CITYJET has agreed to merge with Spanish carrier Air Nostrum in a deal that will create the biggest pan-European regional carrier.

The two companies said they had struck a deal – subject to EU approval – to merge under the umbrella of a new holding company, although they are expected to largely continue operating as separate entities.

CityJet, which was founded by CEO Pat Byrne in 1993, operates 44 aircraft from nine European bases, primarily under so-called ‘wet lease’ arrangements for other airlines.

Under these agreements, the airline provides both the aircraft, maintenance and crew for another carrier. CityJet currently has deals with Air France and Scandinavian airline SAS to provide wet-lease services.

CityJet also flies between Dublin and London City Airport, among a handful of other routes, with its own brand. The company has 1,250 staff on its books.

Its partner, the larger, Valencia-based Air Nostrum, has 50 aircraft and 1,450 staff operating flights to over 50 airports in 15 Europe and Africa.

Air Nostrum provides both wet lease and dry lease – when an aircraft is supplied without crew or ground staff – services to airlines such as Lufthansa and SAS. It also operates the regional network for Spanish flag carrier Iberia.

The companies said the combined entity would have annual revenues of around €700 million. No details of the ownership structure of the new umbrella company were released.

CityJet’s recorded revenue of €198 million and a net loss of around €33 million loss in 2016, the most recent year for which accounts are publicly available, on the back of a series of losses in previous years.

Byrne said the airlines had a lot in common, including their Bombardier CRJ-family fleets and focuses on wet-lease contracts.

The Irish carrier last year culled staff from its London City base to focus on its wet-lease business, axeing routes to Paris and Nantes and reducing flights to Amsterdam as part of the changes.

In a message to staff at the time, Byrne said the airline was on target for its “strategic aim” of operating at least 80% of its aircraft on a wet-lease basis.

CityJet earlier backed out of a long-awaited merger with Stobart Air, which operates Aer Lingus’s network of regional flights.

Byrne rejoined CityJet in 2015 after stepping down as chief executive of the airline in 2000. It was sold to Air France in 2007, however it posted a series of deep losses and was sold to German investor Intro Aviation in 2014.

CityJet’s founder and a consortium of private investors bought back the airline in a deal finalised in early 2016. According to the firm’s 2016 filings, Byrne owned around 9% of the airline following the deal.

https://fora.ie/cityjet-air-nostrum-4132213-Jul2018/

California Dreamer

Where are these imaginary 44 aircraft that CityJet have?

VG31

California Dreamer wrote: »

Where are these imaginary 44 aircraft that CityJet have?

15 RJs (don't think all are still flying), 22 CRJs (operating for SAS) and 7 SSJs.

Welcome news for CityJet considering Brussels airlines want shot of the SSJs because it takes too long to get them serviceable after going tech and Air France appearing more and more on their franchise routes.

California Dreamer

VG31 wrote: »

15 RJs (don't think all are still flying), 22 CRJs (operating for SAS) and 7 SSJs.

Why does airfleets only say 17 and the CRJ's are registered to SAS?

Shpud2

California Dreamer wrote: »

Why does airfleets only say 17 and the CRJ's are registered to SAS?

They may be registered to SAS but operated by Cityjet perhaps? I thought they owned them.

Shpud2

Buffardebuff wrote: »

Will they be renamed?

Article says they will remain as their own brands more than likely.
"they are expected to largely continue operating as separate entities."

L1011

California Dreamer wrote: »

Why does airfleets only say 17 and the CRJ's are registered to SAS?

Airfleets is not the most reliable source in the world.

kevinandrew

Air Nostrum was recently reported to be interested in bidding for the Aer Lingus Regional franchise, CityJet was also said to be a potential bidder so it’ll be interesting to see what happens if this merger goes ahead.

California Dreamer

So if and when the brussels airlines gig finishes and those SSJ's are going spare is CityJet looking for a new home for them or are they going back to the lessor?

L1011

They are intending for LCY steep approach mods to be approved and use SSJs - those or more - to replace the RJ85s

L1011

L1011 wrote: »

They are intending for LCY steep approach mods to be approved and use SSJs - those or more - to replace the RJ85s

Not happening till at least next year, Sukhoi have massively dropped the ball on this as they promised it would be certified last year and then this year.

rivegauche

Cityjet getting 2 CRJ900s.

Dutch:
https://www.pilootenvliegtuig.nl/2018/09/27/cityjet-leaset-bombardier-crj900s-bij-truenoord/