Ryanair has agreed to buy a majority stake in the airline founded by Niki Lauda "” two months after the former Formula One champion scuppered an attempt by British Airway"™ owner IAG to snap it up.
The Irish carrier will acquire 75 per cent of Austria"™s LaudaMotion subject to EU competition approval, it said on Tuesday. It will take a 24.9 per cent stake until the all-clear is received.
British Airway"™ parent, IAG, had originally emerged as the successful bidder for the airline when it was sold under the insolvency of previous owner Air Berlin. The sale was overturned in January, however, when insolvency proceedings were moved from Germany to Austria, prompting a fresh round of bids that Mr Lauda won.
On Tuesday Mr Lauda said he had "always stood up for competition and"¦opposed monopolie". He said he was "thrilled" that the deal with Ryanair meant his airline would "be able to establish itself as a strong competitor".
Ryanair said the cost of the 75 per cent investment would be less than €50m, although it would provide an additional €50m for start-up and operating costs in the first year. Mr Lauda will chair the board of the airline and "oversee the implementation of his strategy to build a successful Austrian low fares airline".
The Irish buyer will provide "financial and management support" to LaudaMotion as well as six aircraft under leases that include crew, maintenance and insurance. "Both Mr Lauda and Ryanair will work with the existing management team of LaudaMotion and expect the airline to reach profitability by year three of operations if their plan to grow the business to a fleet of at least 30 Airbus aircraft is successful," Ryanair added.
Michael O"™Leary, chief executive of Ryanair, said his airline had been looking to develop a fleet of Airbus aircraft within the group for a number of years "” something LaudaMotion"™s Austrian air operator"™s certificate would allow it to do…
