RYANAIR wants to take up to 75% of LaudaMotion

On March 20, Ryanair Holdings Plc announced an agreement with Niki Lauda to support LaudaMotion's development. Based on this agreement, RYANAIR will take up to 75% of the shares.

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On 20 March 2018, RYANAIR announced that it has entered into an agreement with Niki Lauda to support the company's development LaudaMotion. The company owns an Austrian AOC and has taken over some of the assets of the former Niki Airlines company, including Airbus A320 aircraft.

RYANAIR buys LaudaMotion

Under this agreement and at this stage, RYANAIR will acquire 24.9% of the shares of LaudaMotion, following in the near future the participation to reach 75%, but only under the approval of the EU Competition Council.

Niki Lauda will chair the LaudaMotion board of directors and oversee the implementation of its strategy. Ryanair will provide financial and management support as well as 6 leased aircraft for the 2018 summer season. Thus, LaudaMotion will be able to operate with 21 Airbus aircraft in this year's summer program.

Well, the money part didn't interest me much anymore. RYANAIR announces an initial investment of 50 million EURO, but only if it receives EU approval to take over 75% of LaudaMotion.

Why does RYANAIR want to invest in such a young airline? Because RYANAIR wants to enter the markets of Austria, Germany and Switzerland. Initially, Austrian Airlines objected when it came to RYANAIR flying from Vienna (Wizz Air finally entered). Lufthansa wasn't too happy when RYANAIR announced it would open its Frankfurt base.

So RYANAIR has found another more efficient and even cheaper solution. Invest 50 millions of EURO and win slots in the 3 target countries. It is to be expected what will happen on the European market in the coming months.

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