FlyMe ditches Astraeus purchase

Swedish airline FlyMe's proposed acquisition of British charter airline Astraeus, a deal reported to have been sealed at the beginning of this month, will not now take place.

The deal would have meant an increase in FlyMe’s fleet from five to fifteen aircraft. Instead FlyMe has announced that it is entering into a so-called “dry lease agreement” with Astraeus, which entails that it will acquire two Boeing 737-300s from the British company.

“The demand for low-price flights is continuing to grow,” said Fredrik Skanselid, CEO of FlyMe Sweden.

“Since we plan to expand both at home and abroad, it feels good that FlyMe is now gaining two further Boeing 737-300s, which are perfect for our expansion in the low-price flight sector.”

Whereas FlyMe’s business model is centred on the Boeing 737, Astraeus is planning to focus on the larger Boeing 757 aircraft. According to a FlyMe press release, both parties intend to continue talks that will include the possibility of future collaboration on the English market.

In another break with schedule, FlyMe has decided not to pursue its successive acquisition of shares in Lithuanian Airlines as the company had previously announced.

Having analysed the business, the FlyMe board concluded that it would instead continue the present form of collaboration with Lithuanian Airlines, which includes a dry lease agreement for the use of a Lithuanian Airlines Boeing 737-500.

Paul O’Mahony