Go Fly

Infobox Airline
airline = Go


image_size = 250
IATA = GO
ICAO = GOE
callsign = Go Flight
founded = 1998
ceased = 2002
hubs = London Stansted
secondary_hubs =
focus_cities =
frequent_flyer =
lounge =
alliance =
subsidiaries =
fleet_size = 28
destinations = mainland Europe
parent =
company_slogan =
headquarters = London Stansted
key_people = Barbara Cassani, Bob Ayling, Rod Eddington
website =

Go Fly was the name of an award-winning British airline, trading as "Go", which was purchased by easyJet in May 2002 for the equivalent of $545 million [cite news | first=Alan | last=Cowell | coauthors= | title= World Business Briefing / Europe: Britain: Discount Airlines Merge | date=2002-05-17 | publisher= | url =http://query.nytimes.com/gst/fullpage.html?res=9907E1DB1F39F934A25756C0A9649C8B63 | work =New York Times | pages = | accessdate = 2008-01-16 | language = ] .

History

In November 1997, British Airways announced that, under the project name of Operation Blue Sky, it would launch its own low cost airline [cite news | first=Paul | last=Burnham Finney | coauthors= | title= Business Travel; Hong Kong's Huge New Airport, Chek Lap Kok, is Set to Open in April, Tourist Slump and all | date=1997-12-31 | publisher= | url =http://query.nytimes.com/gst/fullpage.html?res=9500E0DD1331F932A05751C1A961958260 | work =New York Times | pages = | accessdate = 2008-01-16 | language = ] in order to meet the changing demand for air travel in Europe. According to British Airways' CEO, Bob Ayling, the new airline would, "quickly become a favourite with the budget traveller" via its pricing scheme and available flights [cite news | first= | last= | coauthors= | title=New BA Low-Cost Airline Meets Legal Threat | date=1997-11-17 | publisher= | url =http://news.bbc.co.uk/2/hi/business/31921.stm | work =BBC News | pages = | accessdate = 2008-01-16 | language = ] . The new airline would be run separately from British Airways as a wholly owned subsidiary and would compete in the European low-cost market, dominated by Ryanair, easyJet and Debonair.

Barbara Cassani, who had been the British Airways General Manager in New York and had been credited with turning around the airline's flagging fortunes on the transatlantic market in the early 1990s, was chosen by Bob Ayling to set up the new venture. The airline was named Go Fly Limited in February 1998 after a lengthy debate over how to choose a name that would best suit the positioning of this new airline, which was already facing challenges from easyJet [ cite web|url=http://www.easyjet.com/EN/news/19980120_01.html |title=the easyJet case against Operation Blue Sky |accessdate=2008-01-16 ] and Virgin [cite news | first=Andrew Ross | last=Sorkin | coauthors= | title= Nurturing a No-Frills Airline | date=1999-09-19 | publisher= | url =http://query.nytimes.com/gst/fullpage.html?res=9C00E2D6123CF93AA2575AC0A96F958260 | work =New York Times | pages = | accessdate = 2008-01-16 | language = ] , among others.

The fleet consisted of Boeing 737s. The first two, 737-300s G-IGOC and G-IGOE"Go: An airline adventure", Barbara Cassani with Kenny Kemp, ISBN 0751535605] , were initially acquired via lease from Philippine Airlines [cite news | first=Max | last=Kingsley-Jones | coauthors= | title=Blue Sky Prepares for Launch as PAL 737-300s are Secured | date=1998-01-28 | publisher= | url =http://www.flightglobal.com/articles/1998/01/28/32046/blue-sky-prepares-for-launch-as-pal-737-300s-are-secured.html | work =Flight | pages = | accessdate = 2008-01-16 | language = ] . A fourth plane, a 737-3Q8 G-IGOF was leased in May 1998.

On 22 May 1998, Go flew for the first time, from its base at Stansted Airport to Rome Ciampino. As part of their campaign against Go, the founder of easyJet Stelios Haji-Ioannou and nine other easyJet staff booked tickets for the flight, arriving in orange boiler suits. [ [http://www.stopstanstedexpansion.com/news_archive17.html Stop Stansted Expansion Campaign - SSE News Archive - April to June 2006] ] Other early routes were to Copenhagen, Milan, Bologna and Lisbon. In July flights to Edinburgh were started, then to Munich in November and Venice in December 1998, followed by Malaga, Faro, Bilbao in April 1999 and Madrid.

After leasing three further planes, including one former Air Liberté plane and another ex-British Midland, between November 1998 and November 1999 six additional planes were delivered direct from Boeing, leased from GE Commercial Aviation Services bringing the total to 13. Although this was four more than had originally been envisaged, the additional routes helped to spread the overheads. In a successful attempt to stem mounting losses, on June 7 1999 a significant change in strategy was announced, cutting back on the existing schedules in favour of new routes tapping into the summer holiday market to Alicante, Ibiza and Palma. This was followed by winter schedules targeting skiers travelling to Lyon and Zurich, together with a new route to Prague.

In March 2001, Go expanded its UK operations and opened a second base in Bristol, bringing low cost travel to England's South West for the first time [cite news | first= | last= | coauthors= | title=Go to Bring Low Airfares to the South West | date=2001-03-09 | publisher= | url =http://www.bristolairport.co.uk/press/press_releases/article.aspx?newsid=%7B7610396F-EB03-41C5-9CEB-D7D34141F0C4%7D | work =Bristol International | pages = | accessdate = 2008-01-16 | language = ] .

2001 was important to Go for other reasons, in June of that year a management buyout, led by Cassani with the cooperation of 3i, a European venture capital company [cite news | first= | last= | coauthors= | title=Go Flies Away From Parent Company BA | date=2001-06-15 | publisher= | url =http://www.4ni.co.uk/northern_ireland_news.asp?id=14342 | work =4NI | pages = | accessdate = 2008-01-16 | language = ] . In December 2001, Go reported that it had carried 57.3% more passengers in December 2001 then in the previous year [cite news | first= | last= | coauthors= | title=3I Go Fly Dec passengers up 57 pct yr-on-yr | date=2002-01-04 | publisher= | url =http://www.advfn.com/news_Go-Fly-Dec-passengers-up-57-pct-yr-on-yr_2098451.html | work =ADVFN | pages = | accessdate = 2008-01-16 | language = ] .

Relationship with British Airways

Go was very much the brain child of Bob Ayling and when he left British Airways, Go's future was rendered shaky [cite news | first= | last= | coauthors= | title=Outlook: Eddington Axes Ayling's Legacy. But Will it Work? | date=2000-11-07 | publisher=The Independent | url =http://findarticles.com/p/articles/mi_qn4158/is_20001107/ai_n14343804 | work = | pages = | accessdate = 2008-01-16 | language = ] . In November 2000, under new chief Rod Eddington, British Airways announced that it planned to sell Go [cite news | first= | last= | coauthors= | title=BA to sell Go Airline as Profits Surge | date=2000-11-06 | publisher= | url =http://news.bbc.co.uk/2/hi/business/1009283.stm | work =BBC News | pages = | accessdate = 2008-01-16 | language = ] . While no concrete reason was ever provided, rising fuel costs and a desire to focus on their core service have been cited as reasons for BA's desire to sell.

Estimated gains from the sale fluctuated, and in January 2001 British Airways admitted that its initial estimates may have been incorrect and that they now estimated Go to be worth only £200m [cite news | first=Michael | last=Harrison | coauthors= | title=BA admits Sale of Go May Raise Just £200m | date= | publisher= | url =http://news.independent.co.uk/business/news/article265669.ece | work =The Independent | pages = | accessdate = 2008-01-16 | language = ] . With the revised forecasts, there seemed to be an increase in pressure to sell Go as soon as possible, possibly within two months.

When the deal with private equity firm 3i became official in June 2001, the airline's management team remained in place [cite news | first=Alan | last=Levy | coauthors= | title=All Signals Go: Airline Sold | date=2001-06-20 | publisher= | url =http://www.praguepost.cz/busi062001f.html | work =The Prague Post | pages = | accessdate = 2008-01-16 | language = ] due, in part, to 3i's recognition of the fact that it was this team that had launched and operated the airline so successfully in a challenging environment.

Merger with easyJet

On 16 May 2002, easyJet announced that it would buy Go for £374 million to expand its own operations [cite news | first= | last= | coauthors= | title=Circular Regarding Proposed Acquisition of Go | date=2002-05 | publisher= | url =http://www.easyjet.com/en/Investor/20020524_01.html | work = | pages = | accessdate = 2008-01-16 | language = ] . By December 2002, easyJet and Go operated under one Air Operators Certificate (AOC) and in April 2003 the airlines operated as one, fully under the easyJet brand. Although it was initially reported that Cassani might seek to block the deal with easyJet, but that did not happen [cite news | first=Kenny | last=Kemp | coauthors= | title=Cassani: I Won't Stop Takeover of Go; UK Businesswoman of the Year | date=2002-05-12 | publisher= | url =http://findarticles.com/p/articles/mi_qn4156/is_20020512/ai_n12576303 | work =The Sunday Herald | pages = | accessdate = 2008-01-16 | language = ] . She did not accept a position with the new entity and in November 2003, Barbara Cassani published "Go, An Airline Adventure", which chronicled the airline's existence.

Fleet

27 Boeing 737-300s

References