SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of April 2003
RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
RYANAIR ANNOUNCES THE SUCCESSFUL COMPLETION OF THE BUZZ TRANSACTION WITH KLM
Ryanair, Europe's No.1 low fares airline today (Friday, 11th April 2003)
announced that it had completed the transaction with KLM, to acquire certain
assets (but not the company) of KLM UK Ltd which traded as Buzz. The final terms
involve Ryanair paying a sum of EUR20.1m to KLM to acquire 10 aircraft (6 x
737-300's and 4 x BAe146's), up to 130 employees, together with the relevant
operating manuals, postholders and some airport facilities that were formerly
owned by KLM UK Ltd and which comprise the core operation of Buzz. KLM UK will
retain up to 470 of the staff previously dedicated to the Buzz operation, as
well as the Headquarters building in Stansted, the assets and liabilities of the
legal entity KLM UK Ltd which was trading as Buzz up to 31 March 2003.
Ryanair confirmed that the agreed purchase price has been reduced from EUR23.9m
to a final agreed figure of EUR20.1m as a result of a number of issues, which
arose during the due diligence process. Ryanair has formed a new subsidiary -
Buzz Stansted Ltd - and this company will operate the fleet of 10 aircraft, will
employ up to 130 people and will hold the UK AOC approval to enable the company
to commence flying on 1 May next. It is intended that the company will operate
its aircraft on a subservice basis flying directly for Ryanair, primarily
operating on a network of 12 routes, which were formerly operated by KLM UK/
Buzz.
Ryanair are delighted to announce that the key operational postholders have
agreed to join Buzz Stansted Limited, as this forms a core of experienced,
senior aviation people led by Doug Stephen, Chief Pilot and Roland Stroud, Chief
Engineer. Floris Van Pallandt the former Chief Executive of Buzz will be
returning to KLM as previously agreed. The new Chief Executive of Buzz Stansted
Limited will be Mr John Osborne a former Director of Operations for Ryanair and
former Chief Executive of GB Airways and Virgin Express. This experienced team
will work closely with the CAA over the coming weeks to ensure a smooth
resumption of flight services on 1 May next.
Ryanair have confirmed that bookings on the 12 routes, which have already been
relaunched and will commence flying on 1 May next have been exceptionally
strong. Already for the month of May over 100,000 passengers have reserved seats
on these services and for the six months of the Summer period more than 400,000
seats have already been sold, generating advance revenues of over EUR20m. These
advance sales will be more than sufficient to fund the entire acquisition of the
core assets and operation of Buzz.
Whilst this transaction has already received approval from the relevant
regulatory authorities in Ireland and Germany, it has not yet received
regulatory clearance from the UK competition authorities. This is entirely due
to the very tight schedule which Ryanair and KLM have adhered to in order to
complete this rescue of Buzz and the saving of up to 130 jobs.
Ryanair and KLM have advised the OFT of their intention to complete the
acquisition without waiting for regulatory approval in advance.
Welcoming the completion of this transaction today, Ryanair's Chief Executive,
Michael O'Leary said:
"We have been delighted with the speed and success of the turnaround and
relaunch of the core Buzz operation. Thanks to the Herculean efforts of our
friends in KLM, the outstanding team of people in Buzz and Ryanair, we have
restructured and relaunched the core Buzz operation within a period of two
months. This turnaround will transform a company that was losing over EUR1m
a week, to one that will be profitable when it relaunches on 1 May next.
"In doing so we have rescued the core operation of Buzz, we have doubled
the capacities and halved the fares on 12 of its most important routes. In
doing so, we will have saved up to 130 highly paid jobs and we will more
than double the traffic on these routes to over 3 millions passengers
during the coming year.
"To achieve such a dramatic and successful turnaround during perhaps the
worst two months in the history of the aviation industry (when we have been
bedevilled by a war in Iraq, fuel prices at all time highs and the
reluctance of people to travel because of fears over security and
terrorism), is a magnificent tribute to the courage of the 130 outstanding
people of Buzz who will now form the core of Buzz Stansted Limited.
"This success would not have been possible without the help and assistance
of the regulatory authorities and we are working closely with the CAA to
ensure that it is satisfied with the financial status of the operation and
more importantly with the operating and safety structures which will
continue to be managed by the key senior operations and engineering staff
of the former KLM UK. We are delighted to have secured the services of John
Osborne who has a long and successful career at senior levels in a number
of European airlines, and who is now returning to the Ryanair group based
in the UK.
"We will continue over the coming two weeks to liaise closely with both the
CAA and the OFT and look forward to obtaining their approval in due course
of the purchase and rescue of the core operation of Buzz and its successful
relaunch from 1 May onwards, as part of Europe's No.1 low fares airline -
Ryanair".
Ends. Friday, 11th April 2003
For further information
please contact:
Howard Millar
Ryanair
Tel. +353-1-8121212
Pauline McAlester
Murray Consultants
Tel. +353-1-4980300
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
RYANAIR HOLDINGS PLC
Date: 11 April 2003
By:___/s/ Howard Millar____
H Millar
Company Secretary & Finance Director