tenthije
October 7, 2004 at 8:45 pm

Virgin Express and SNBA to merge, finally confirmed!

http://news.bbc.co.uk/1/hi/business/3719326.stm

Virgin Express, the Belgian-based budget airline owned by tycoon Sir Richard Branson, has sealed a planned tie-up with carrier SN Brussels.
Although the two airlines will continue to operate separately, they aim to make savings by ending duplication of routes…
…and by using joint purchasing power.

Interesting, it is not mentioned in the BBC article, but at Airliners.net it has been said that the Virgin Express brand will disappear. This would be logical since the Virgin brand is owned by Virgin. SNBA may take over the airline, the brand can not be taken over.

It is interesting to see they want to use “joint purchasing power”. This could mean nothing more than buying fuel and stationary for the whole group. On the other hand, it might also mean a joint purchase of planes. The leases on SNBA’s A319s are going to expire next year and the ARJs are hardly the most economical aircraft in the world. On the other side Virgin Express’ planes are classic 737s, so they too will have to be retired in a few years.

Interesting times ahead in Belgium!

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