British group sets sights on Swissair’s French carriers
The troubled Swissair Group could soon be relieved of the burden of its loss-making French airline company, AOM/Air Liberté, after the British consulting group, AITI, put forward a bid of some FFr3 billion (SFr700 million) for the carriers.
AITI said on Friday that it had sent an initial letter of interest to AOM/Air Liberté chief executive Marc Rochet on April 18. It added that the offer was being made on its own behalf and not for a third party. AOM/Air Liberté is owned jointly by Swissair Group and France’s Marine Wendel.
Both have been looking for buyers for the loss-making French airline group for months.
Swissair Group spokesman, Siro Barino, told swissinfo that he could confirm AITI had sent a letter of interest to AOM/Air Liberté.
“I can confirm that AOM told us that they got such a letter and they are going to look at it and check it like all other offers, but there’s no mutual agreement between AOM or AITI,” explained Barino.
AOM/Air Liberté expressed scepticism over the surprise takeover bid from AITI, saying it had no proof that the British group had the money to back up its offer.
In a brief statement, the struggling French carrier said it had no intention of standing in the way of a legitimate bid and would continue to evaluate all “real and serious” offers.
AITI said that its offer for AOM/Air Liberté was for the ongoing business and not just the assets.
“The plan is to take the entire business and for that business to continue in its current form,” an AITI spokeswoman said.
AITI has in the past acted as a consultant to the Virgin Group, owned by the British entrepreneur, Richard Branson. But a spokesperson for AITI said neither Virgin Express nor Virgin Atlantic was bidding for AOM/Air Liberté.
Last week, both Virgin Atlantic and Virgin Express denied British press reports that they had any interest in the French airline.
On April 25 AOM/Air Liberté’s two major shareholders announced they would give the airline a two-month financial lifeline pending the search for a buyer, but made clear if a buyer was not found that they would cut off funding.
Early last week AOM/Air Liberté announced over 1,300 job cuts as part of a restructuring programme that aims to lift the airline out of the red by 2004.
Staff at the airline has hampered the airline’s service over the past two weeks with strikes in protest against the planned restructuring.
Shares in Swissair Group rose 6.6 per cent to close on Friday at SFr133 on the Swiss market as dealers applauded news of the bid for Swissair’s French interests.
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