VIRGIN EYES CITYFLYER
Cityflyer shareholders are considering a last-minute £75m offer from Virgin Atlantic to buy the Gatwick-based airline. Virgin’s bid matches one made by British Airways in December. However, BA’s plans have been referred to the Monopolies and Mergers Commission following fears a buyout would leave the airline with almost half of Gatwick’s slots. The MMC will reveal the results on April 28, with the Government reaching a decision in mid-summer. Virgin said it would end Cityflyer’s franchise with BA and rebrand aircraft in Virgin colours to serve its European network if successful.
MEXICO BEGINS £10 TAX
Mexico is to introduce a £10 entry fee from July 1. Visitors will receive a tourist card as proof of payment which they must show when leaving the country. Long-haul market leader Kuoni criticised the move claiming it could damage Mexico business.
BRITANNIA $20M DEAL
Britannia Airways has signed a two-year $20m wet-lease contract with Transaer to provide extra capacity through the summer. The Irish airline will paint three of its Airbus A320s in the Thomson carrier’s livery. They will be based at Leeds/Bradford, Bristol International, East Midlands, and Cardiff International Airports from May to October.
BASE UNDER BA’S WING
Base Airlines of the Netherlands has become British Airways’ tenth franchise partner. The Dutch carrier’s Gatwick, Birmingham and Manchester routes to Eindhoven and Rotterdam will be rebranded in BAcolours. From March 28, Heathrow will also operate the Eindhoven route.