EasyJet Plc today announced its long-awaited acquisition of rival British budget carrier Go-Fly Ltd for £374 million sterling (€500 million), toppling Ryanair as Europe's biggest low-cost airline.
No-frills carriers have seen passenger numbers soar even after the September 11th attacks last year that devastated the aviation sector, as they lured travelers away from mainstream carriers like British Airways.
EasyJet said the acquisition would be funded by a rights issue that is expected to raise £277 million. The issue has been set at 4-for-11 shares at 265p per share.