Irish airline CityJet, a subsidiary of Air France KLM, is set to be sold to Germany-based
Intro Aviation
, the companies announced yesterday. The purchase price was not disclosed.
In a statement the companies said the offer "provides for ongoing commercial co-operation with Air France as part of a new industrial plan". Employees will be "informed and consulted", they added.
Struggled financially
The transaction is expected to close in the first quarter of next year. CityJet has been on the blocks for many months, having struggled financially in recent years. It posted a loss of €209 million in 2012. This comprised an operating loss of €21.3 million and included exceptional charges of €185 million. It got a capital injection of €180 million by Air France Finance so that CityJet could repay its debt to its French parent.
Barons Financial Services based in Switzerland advised Intro Aviation.
The Intro Group was founded by German businessman Hans Rudolf Wöhrl and is headquartered in Reichenschwand.
Mr Wöhrl, established and expanded NFD, now known as Eurowings, to become the biggest independent German regional carrier.
Since its divestment of NFD, Intro Group has maintained an active involvement in the airline sector through its subsidiary Intro Aviation.
Reorganisation
It successfully turned around Deutsche BA (DBA), a loss-making German airline which Intro acquired from British Airways in July 2003. Through a team-structured reorganisation process, Intro turned DBA profitable in November 2004 and it was sold to Air Berlin.
It is understood that CityJet will continue to operate flights from Dublin to Paris and London City, where it has its main base of operations.
CityJet chief executive Christine Ourmieres is expected to remain with the business when the deal closes.
