GO’S deal to supply fares through global distribution
system Galileo has been thrown into confusion following EasyJet’s proposed £400
million acquisition of the low-cost airline.
Go only announced the deal to sell fares through
Galileo last week, but any acquisition by EasyJet could see an end to agents
selling its fares via the GDS. EasyJet has already indicated that the Go name
will be dropped and it appears likely it will also be forced to adopt other
areas of its new owner’s business model – including direct-only fares.
However, an EasyJet spokesman refused to rule out
using the GDS. “We will look at how Go runs its business and how we run ours
and we’ll see which way to go forward,” he said.
At the time of going to press, the deal between the
two low-cost rivals had not been finalised, but sources indicated it would be
only a “matter of days”.
A combination of EasyJet and Go would create Europe’s
largest no-frills operation, carrying more passengers than Ryanair.
EasyJet chief executive Ray Webster said the two
airlines were complementary in size, culture and profitability, with both
carriers reporting strong financial results last week.
EasyJet scored a £1 million first-half pre-tax profit,
while Go boosted year-end profits by 300% to £17 million.
EasyJet could be strengthened further if it decides to
take up its option to buy British Airways’ German subsidiary Deutsche BA, which
it will convert into a low-cost carrier.
Lufthansa has ruled out any
immediate plans to launch a German low-cost operation to counter the impact of
EasyJet, but claims to have looked into the option.