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KLM may make Go bid
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March 5, 2001: 6:18 a.m. ET
Dutch airline reviews position in low-cost industry, may bid for BA's Go
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LONDON (CNN) - KLM Royal Dutch Airlines said on Monday it was reviewing its presence in the "no-frills" industry and may consider a bid for Go.
British Airways, Europe's biggest airline, is selling its low-cost airline Go to improve profitability at its European business, because of cut-throat competition from a host of increasingly popular cut-price airlines.
KLM, which operates its own low-cost airline called Buzz, has made a conditional bid for Go in a joint approach with a private equity group, the Financial Times reported.
Bart Koster, KLM's spokesman, told CNN that the airline had not made a bid for Go and would not be drawn on the question of joining a private equity firm in making a joint offer.
KLM said it is reviewing its option in the sector and could exit the low-cost sector altogether. The no-frills airline industry is estimated to be worth £1.4 billion by 2003, according to research from Euromonitor
British Airways is seeking about £100 million ($147 million) for the airline and hopes to conclude a deal by the end of the month, the newspaper said.
KLM, which broke off merger talks in September with British Airways that would have created the world's fourth largest airline, asked Goldman Sachs, BA's investment bankers charged with finding a buyer, for a prospectus in November.
Still, BA may be reluctant to sell the no-frills airline to a European competitor, leaving the door open for U.S. and other international players to enter the low-cost market,.
Go has yet to make a profit. Although revenue tripled to £100.6 million in the year ended March 31, 2000, it posted a loss £15.2 million, little changed from the previous year's £15.5 million deficit 
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