British Airways acquires French business-class carrier L'Avion for $107 million

02 July 2008

British Airways (BA) has agreed to buy Paris-based L'Avion for £54 million ($107 million) to expand its new OpenSkies unit and increase the number of flights between France and the United States. BA had started OpenSkies on 19 June this year to expand flights between France and the US.

L'Avion, which began flying in January last year, will be integrated into OpenSkies after the deal is completed this month, British Airways said in a statement today. The purchase from private investors includes £26 million, or $52 million, in cash.

L'Avion operates two Boeing 757 aircraft with 90 seats each between Paris and New York. All the seats are in business-class configuration. The privately owned carrier uses the Orly airport in Paris and Newark airport in New York, and had already transported 65,000 passengers across the Atlantic.

L'Avion was originally called Elysair and specializes in business travel. Founded by pilot Frantz Yvelin and Marc Rochet, chief executive, who formerly ran Air Liberte, it is the last independent business class-only carrier after Silverjet, Eos and MAXJet Airways went bankrupt as record oil prices eroded profits.

OpenSkies is the only carrier created specifically to take advantage of the US-European Union (EU) treaty of the same name, which allows airlines to fly between the United States and any EU nation instead of just their home countries. It began flights last month to Kennedy Airport in New York, and its single Boeing 757 has 24 business-class berths that convert to beds, 28 seats in premium economy and 30 in economy.

With the acquisition of L'Avion, which means airplane in French, BA is trying to tap the segment of business travel at low prices. L'Avion flies daily from Orly to Newark. Its promise: "Low-fare business class, French style," including French culinary "know-how" on every flight and French wines and champagnes.