Low-cost Blue Air could be sold

“I do not rule out this possibility (...) Everything is for sale and anyone would sell his business if it is profitable,” he told Business Standard. 

He added that in early 2007 Blue Air was valuated by British consultancy company Orion Group at €30 million. Iordache said the valuation was made at the request of the company’s management. “Personally, I did not have the time to think about how much Blue Air is worth, and I am unable to claim it is priceless and has some sentimental value. We have other priorities now.” 
Iordache said the company targets a larger market share, although it is leader on the local low-cost segment.
Mediafax news agency reported, quoting Iordache and sources from the market, that Greek-based Aegean Airlines is negotiating the purchase of Blue Air, and that the price exceeds €30 million. Sources said the parties allegedly reached an agreement a month ago. Nicolae was quoted as saying that negotiations began in April-May and a decision is to be made by the end of September.

When contacted by Business Standard, Nicolae denied the information published by Mediafax. 

Blue Air recently launched new flights as of October to London and Stuttgart. Currently, the company has flights to Italy, Spain, Turkey, the Netherlands, and France.

In the first quarter of 2007, the company had a total of 400,000 passengers, close to the number for all of 2006 (443,000 passengers). Blue Air posted net sales in H1 worth €37.5 million, or 40 percent of total 2006 sales. The increase was due to a larger number of passengers and flights. 

Blue Air’s main competitor is Hungarian low-cost Wizz Air, which plans to become market leader in 2008. Other low-cost companies operating flights in Romania are SkyEurope (Slovakia), MyAir (Italy), Germanwings (Lufthansa’s low-cost division).  As of September, easyJet (UK) will also come to Romania.