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CityJet has entered into an agreement with a Spanish regional carrier to strengthen its leasing business and attract new contracts to the regional airline market in what it calls a "prelude to a merger".
at the Farnborough Air Show, he had signed letters of credence, or a letter of intent, with Air Nostrum which, if it obtains regulatory approval, would lead to the creation of a holding company to acquire the shares of both companies.
The term heads demonstrate our intent to obtain a merger, "said Pat Byrne, CityJet's Managing Director, The Irish Times .The combined group will have close to 100 aircraft and a figure of business about 700 million euros, which would prepare it to expand its business to historic carriers that are now following the North American trend of outsourcing regional routes.
Mr Byrne said that the target of "1 billion euros is not too ambitious in two or three years." According to Byrne, this growth projection is likely to be "over $ 1 billion." attracting private equity
"There are many synergies in terms of supply and the ability to acquire more aircraft. We do not see job losses – in fact, we are seeing job growth, "he said. However, Mr Byrne noted that the recruitment of pilots is difficult, Ryanair and the Norwegian aspiring a large part of the talent pool. He stated that this development makes the group a "very convincing proposition" for future pilots
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CityJet, headquartered in Dublin, operates a fleet of 44 regional aircraft on a network of rental and rental services. regular services in Europe. A crewed lease is one where an airline provides an aircraft, its crews and maintenance requirements to another airline
Air Nostrum, meanwhile, is based in Valencia (Spain) and manages a fleet of 50 aircraft. , the last year for which accounts are available, CityJet recorded a loss of 30 million euros as it expanded and invested in new aircraft. Mr Byrne said the company was continuing to restructure itself, moving more and more into the wet lease, although he noted that the flagship route between Dublin Airport and the L 39, London airport is a key component of the company's offer.
19659007] His clients include SAS, Brussels Airlines, Air France and KLM. Mr Byrne said the company will make an offer for Aer Lingus' regional business when it will be renewed. This contract is currently operated by Stobart Air.
Air Nostrum Chairman Carlos Bertomeu believes that the agreement will allow airlines to outsource their regional networks with more profitable options.
Air Nostrum use of 30 Bombardier CRJ1000 and CityJet aircraft operating 22 CRJ900 aircraft
The agreement between the two carriers is subject to regulatory approval, and both companies stated that the preparation of "relevant deposits has begun."
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