Go Fly

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Go
IATA
GO		 ICAO
GOE		 Callsign
Go Flight
Founded 1998
Ceased operations 2002
Hubs London Stansted
Fleet size 28
Destinations mainland Europe
Headquarters London Stansted
Key people Barbara Cassani, Bob Ayling, Rod Eddington
Go Fly Boeing 737
Go Fly Boeing 737
For the Hawaii-based airline, see Go! (airline).

Go Fly was the name of an award-winning British airline, trading as "Go", which was purchased by easyJet in May 2002 for the equivalent of $545 million[1].

Contents

[edit] History

In November 1997, British Airways announced that, under the project name of Operation Blue Sky, it would launch its own low cost airline[2] in order to meet the changing demand for air travel in Europe. According to British Airways' CEO, Bob Ayling, the new airline would, "quickly become a favourite with the budget traveller" via its pricing scheme and available flights[3]. The new airline would be run separately from British Airways as a wholly owned subsidiary and would compete in the European low-cost market, dominated by Ryanair, easyJet and Debonair.

Barbara Cassani, who had been the British Airways General Manager in New York and had been credited with turning around the airline's flagging fortunes on the transatlantic market in the early 1990s, was chosen by Bob Ayling to set up the new venture. The airline was named Go Fly in February 1998 after a lengthy debate over how to choose a name that would best suit the positioning of this new airline, which was already facing challenges from easyJet[4] and Virgin[5], among others.

The fleet consisted of Boeing 737s, initially acquired via lease from Philippine Airlines[6].

On 22 May 1998, Go flew for the first time, from its base at Stansted Airport to Rome Ciampino. In March 2001, Go expanded its UK operations and opened a second base in Bristol, bringing low cost travel to England's South West for the first time[7].

2001 was important to Go for other reasons, in June of that year a management buyout, led by Cassani with the cooperation of 3i, a European venture capital company [8]. In December of 2001, Go reported that it had carried 57.3% more passengers in December 2001 then in the previous year [9].

[edit] Relationship with British Airways

Go was very much the brain child of Bob Ayling and when he left British Airways, Go's future was rendered shaky[10]. In November 2000, under new chief Rod Eddington, British Airways announced that it planned to sell Go[11]. While no concrete reason was ever provided, rising fuel costs and a desire to focus on their core service have been cited as reasons for BA's desire to sell.

Estimated gains from the sale fluctuated, and in January 2001 British Airways admitted that its initial estimates may have been incorrect and that they now estimated Go to be worth only £200m [12]. With the revised forecasts, there seemed to be an increase in pressure to sell Go as soon as possible, possibly within two months.

When the deal with private equity firm 3i became official in June 2001, the airline's management team remained in place[13] due, in part, to 3i's recognition of the fact that it was this team that had launched and operated the airline so successfully in a challenging environment.

[edit] Merger with easyJet

On 16 May 2002, easyJet announced that it would buy Go for £374 million to expand its own operations[14]. By December 2002, easyJet and Go operated under one Air Operators Certificate (AOC) and in April 2003 the airlines operated as one, fully under the easyJet brand. Although it was initially reported that Cassani might seek to block the deal with easyJet, but that did not happen[15]. She did not accept a position with the new entity and in November 2003, Barbara Cassani published Go, An Airline Adventure, which chronicled the airline's existence.

[edit] Fleet

27 Boeing 737-300's and 1 BAe 146/ Avro RJ

[edit] References

  1. ^ Cowell, Alan. "World Business Briefing / Europe: Britain: Discount Airlines Merge", New York Times, 2002-05-17. Retrieved on 2008-01-16. 
  2. ^ Burnham Finney, Paul. "Business Travel; Hong Kong's Huge New Airport, Chek Lap Kok, is Set to Open in April, Tourist Slump and all", New York Times, 1997-12-31. Retrieved on 2008-01-16. 
  3. ^ "New BA Low-Cost Airline Meets Legal Threat", BBC News, 1997-11-17. Retrieved on 2008-01-16. 
  4. ^ the easyJet case against Operation Blue Sky. Retrieved on 2008-01-16.
  5. ^ Sorkin, Andrew Ross. "Nurturing a No-Frills Airline", New York Times, 1999-09-19. Retrieved on 2008-01-16. 
  6. ^ Kingsley-Jones, Max. "Blue Sky Prepares for Launch as PAL 737-300s are Secured", Flight, 1998-01-28. Retrieved on 2008-01-16. 
  7. ^ "Go to Bring Low Airfares to the South West", Bristol International, 2001-03-09. Retrieved on 2008-01-16. 
  8. ^ "Go Flies Away From Parent Company BA", 4NI, 2001-06-15. Retrieved on 2008-01-16. 
  9. ^ "3I Go Fly Dec passengers up 57 pct yr-on-yr", ADVFN, 2002-1-4. Retrieved on 2008-01-16. 
  10. ^ "Outlook: Eddington Axes Ayling's Legacy. But Will it Work?", The Independent, 2000-11-07. Retrieved on 2008-01-16. 
  11. ^ "BA to sell Go Airline as Profits Surge", BBC News, 2000-11-06. Retrieved on 2008-01-16. 
  12. ^ Harrison, Michael. "BA admits Sale of Go May Raise Just £200m", The Independent. Retrieved on 2008-01-16. 
  13. ^ Levy, Alan. "All Signals Go: Airline Sold", The Prague Post, 2001-06-20. Retrieved on 2008-01-16. 
  14. ^ "Circular Regarding Proposed Acquisition of Go", 2002-05. Retrieved on 2008-01-16. 
  15. ^ Kemp, Kenny. "Cassani: I Won't Stop Takeover of Go; UK Businesswoman of the Year", The Sunday Herald, 2002-05-12. Retrieved on 2008-01-16.