IBA's Manager of Airline Analysis Neil Fraser shares his perspectives on the sale of Scottish carrier Loganair.
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Present owners Stephen and Peter Bond have announced they plan to relinquish ownership of Loganair after 25 years, and have appointed London-based merger and acquisition specialists Arrowpoint Advisory to handle any approaches. Here's IBA's Neil Fraser's perspective on the sale and what the carrier can offer to a new owner.
"Loganair's next owners will take on an airline that is the second-largest player in the UK domestic market, accounting for 26% of flights. This is effectively double that of the UK flag carrier British Airways and close to the market leader, EasyJet. It is important to note, however, that both carriers have larger capacity due to operating longer sectors. Whilst EasyJet and Ryanair have a larger share of the traffic in the major hubs of Edinburgh and Glasgow, Loganair's capabilities in regional connectivity make it an essential lifeline for connecting Scottish cities and more remote communities.
Whilst the operator represents a very specific bet for a potential buyer at present, they have a solid foundation for international expansion thanks to their fleet of 10 Embraer ERJ 145 regional jets, which have a range of around 1,550 nautical miles.
Loganair presents a truly interesting and unique prospect for the right owner, and we will monitor developments in the sale in the coming weeks and months."
Fleet data from IBA Insight reveals that Loganair operates 33 active aircraft as of 10 October 2022. 68.2% of the fleet are turboprops, with types including the Saab 340, ATR 42, ATR 72, and Dornier 328. Loganair have no aircraft orders at the time of writing.