GB Airways - Strategic Option review and sale transaction
Nyras was retained by GB Airways to develop strategic options for consideration in the context of the future termination of its franchise licence agreement with British Airways. Key objectives of the project were to:
- Develop a three-year business plan to evaluate the impact of the options on the business and the implications for the owners.
- Provide competitor and market analysis to underpin the strategic option selection.
- Address the valuation issues leading to the preferred option of a potential joint venture around a new business model for Gatwick.
Following compilation of the strategic options, our team were asked to develop the joint venture solution along the lines of a new business model and establish a Gatwick-based business proposition for presentation to the potential partner’s senior management team.
We developed a fully worked solution covering aspects including strategic vision, partner–supplier discussions, network and fleet planning, product design and development, commercial and operational processes and systems and programme management, along with assistance to implement required changes.
The successful delivery of our joint venture solution, led the client to request our help with exploring alternative strategic options, resulting in the mandate to dispose of the GB business.
We supported the client by:
- Identifying a number of potentially suitable investors.
- Preparing, organising and managing the vendor due diligence process on behalf of GB.
- Conducting preliminary negotiations, leading to exclusive, detailed negotiations with easyJet, which culminated in the completion of a deal when regulatory clearance was obtained.
- Securing the sale of four pairs of Heathrow slots, and achieving the requested sale price.
We also worked with management on transition preparation, negotiated the exit from the franchise agreement with British Airways and assisted management in the preparation of the submissions required by the Office of Fair Trading and other European Competition Authorities.