CityJet to acquire Blue1, CityJet will operate 8 CRJ900s for SAS

Scandinavian Airlines-SAS (Stockholm) has made this announcement today:

Scandinavian-SAS logo

SAS’s strategy is to offer frequent travelers a broad network with frequent flights to, from and within Scandinavia. To adapt the size of the production to traffic flows SAS utilizes hired capacity, known as a wet lease, with smaller regional jet and turboprop aircraft.

In line with this strategy, SAS has entered into an agreement with CityJet (Dublin) on the wet lease of eight new Bombardier CRJ900s. SAS already operates twelve regional jet aircraft of this type through its subsidiary, Cimber.

The new aircraft, which each have 90 seats and are painted in SAS colors, will be put into service from March 2016 on routes and at times when there is a need for smaller aircraft. The wet lease agreement is for three years and covers eight Bombardier CRJ900s with an option on a further six aircraft.

Blue1 logo

As part of this collaboration, CityJet is acquiring 100% of the shares in SAS subsidiary Blue1. The sale of Blue1 will lead to a marginal impact on SAS’s income before tax, cash and net debt. The Group’s income after tax during Q4 2014/2015 will be negatively impacted of around MSEK 90, primarily due to write down of capitalized loss carry forwards. The sale and the new wet lease agreement are expected to increase cost efficiency and flexibility.

Above Copyright Photo: Rolf Wallner/AirlinersGallery.com. It is unclear what CityJet will do with Blue1. Blue1 currently operates five Boeing 717-200s and SAS is selling the 717s to Volotea and Delta. The type is due to be retired at Blue1 next month. Will Blue1 operate the CRJ900s for SAS? Boeing 717-23S OH-BLM (msn 55066) taxies at Zurich.

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CityJet is a European airline that was founded in 1992. CityJet has a fleet of 18 Avro RJ85 jet aircraft and it operates over 680 flights per week throughout Europe.

In the meantime, CityJet made this announcement today:

CityJet (2015) logo (LRW)

CityJet wins major contract to operate SAS regional routes and places order for up to 14 Bombardier CRJ900 aircraft.

Irish airline CityJet has been awarded a major wet lease contract by SAS (Scandinavian Airlines) to operate a network of regional routes from Helsinki, Oslo and Stockholm . Commencing in March 2016, CityJet will operate services on behalf of SAS using eight new aircraft, with an option to increase to 14 aircraft in 2017.

CityJet has also announced that it is to acquire eight 90-seat Bombardier CRJ900 regional jets, major components of which are manufactured by Bombardier Aerospace in Belfast. The CRJ900 fleet will be operated exclusively on behalf of SAS, with all aircraft in SAS colors and crewed by CityJet staff.

In addition to the eight aircraft in 2016, the contract has potential to add six further aircraft in 2017, bringing the total aircraft value to over $650m;

 

Since becoming independent last year, CityJet has seen continual growth across its network, and will carry over two million passengers this year on its scheduled services, charter services, and a Paris-based wet lease programme for Air France.

The airline has recorded 40% growth on its key route Dublin to London City route in the last six months, as well as strong advance bookings for the new Cork to London City service, which commences today and will see up to eighteen flights a week on the route.

CityJet now employs almost 500 staff, with over 300 based at its headquarters in Swords, County Dublin, and additional crew bases in London and Paris.

Top Copyright Photo: Paul Bannwarth/AirlinersGallery.com. SAS Bombardier CRJ900 (CL-600-2D24) OY-KFD (msn 14221) prepares to land in Zurich.

SAS aircraft slide show: AG Airline Slide Show

CityJet aircraft slide show: AG Airline Slide Show

Blue1 aircraft slide show: AG Airline Slide Show

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