Blue Air, the largest low-cost airline operator on the domestic market and an entirely Romanian-held company, is involved in sales talks with Greek-based Aegean Airlines, with the domestic company carrying a price tag in excess of 30 million euros, according to Nelu Iordache, Blue Air's founder and majority shareholder.
"We started talks with Aegean Airlines in March-April, but the discussions have lost momentum. By the end of September, we will know for certain whether the deal will be sealed or not," said Nelu Iordache.
Iordache also specified Aegean Airlines is the only company involved in negotiations for the sale of Blue Air.
However, Blue Air representatives maintain they are not in talks with Aegean Airlines alone. "We have been in talks, for a while, with various investment funds and foreign companies over a long-term collaboration agreement. None of these negotiation processes have been finalised and Blue Air could also consider the option of a floatation on the Stock Exchange," specified company representatives.
Nelu Iordache's decision to sell the company comes after several low-cost operators entered the Romanian market.
Blue Air's fleet includes four Boeing aircraft, with the most recent aircraft acquired in 2006.
Blue air was the first Romanian low-cost airline company, and launched its operations in December 2004. Last year, the airline company reported a turnover worth 50 million euros; double the level reached in 2005, and forecasts revenues worth 80 million euros this year. Nevertheless, Blue Air's income remains very low and, according to data from the Finance Ministry, it only stood at 105,000 euros last year.
Aegean Airlines is a Greek-based airline founded in 1987 under the name of Aegean Aviation and in 1994 was acquired by Vasilakis group. In 2000, Aegean acquired Air Greece.
In the first half of this year, Aegean Airlines registered a turnover worth 209 million euros, according to Forbes. By the time the story was ready for print, Aegean representatives had not released any statements.
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