Ryanair has completed the acquisition of Buzz from KLM for €20.1 million, some €3.8 million below the original purchase price, but the deal is still subject to clearance from the UK Office of Fair Trading (OFT).

The Irish-based airline has acquired 10 aircraft and will employ just 130 Buzz staff while more than 400 have been made redundant. The purchase price was reduced from €23.9 million "as a result of a number of issues which arose during the due diligence process", Ryanair said.

In a statement, Ryanair said it had proceeded with finalising the deal because of the very tight schedule it and KLM had adhered to in order to complete its rescue.

An OFT spokesman said yesterday that it was working towards delivering its findings to the Department of Trade and Industry by the end of the month. The closure of the deal will not have any impact on its deliberations, he added.

Reacting to the news, the Transport and General Workers' Union said it looked forward to building a new relationship with the airline and would continue to represent the best interests of its members at Buzz.

"This has not been the easiest of times for those who have been made redundant but some satisfaction can be drawn from the confirmation that KLM is to pay enhanced redundancy following strong representations by union officials," a spokesman said.

Ryanair chief executive Mr Michael O'Leary said he was delighted with the speed and success of the turnaround. The airline will be relaunched on May 1st and he claims that more than 100,000 passengers have reserved seats on Buzz routes for that month. A further 400,000 seats have been sold over the next six months, which the company claims have generated revenues of about €20 million.

"To achieve such a dramatic and successful turnaround during perhaps the worst two months in the history of the aviation industry is a magnificent tribute to the courage of the 130 outstanding people of Buzz who will now form the core of Buzz Stansted Limited," Mr O'Leary said.

The airline is working with the UK's Civil Aviation Authority to ensure it is satisfied with the financial status of the operation and the operating and safety structures that will continue to be managed by former KLM UK key personnel. Ryanair intends to operate its aircraft on a network of Buzz's 12 routes.