Lucky Mr. Bejach

Implications: Its not easy being lucky in the airline business at present. Its not easy being in the business at all. But here is one very lucky man.

Analysis:  Now this is a surprise - but it makes sense. British Airways reached an agreement to buy L'Avion at a cost of £54m. The cost covers the purchase of the airline and £26m of cash in its business. One could now consider L'Avion the sole success in this sector. L'Avion was privately-owned and operates two 757s between Paris Orly and Newark.

Following completion of the deal, expected this month, it will become a British Airways' subsidiary and be integrated into OpenSkies, the airline's new EU-US subsidiary airline. OpenSkies launched services June 19 this year with daily flights from Paris Orly to JFK as an L'Avion codeshare. The combined airline will operate up to three daily flights between Paris Orly and the New York airports using three 757s. Its not clear how soon the L'Avion planes will get repainted and equipped like the OpenSkies planes.

British Airways' chief executive, Willie Walsh, said: "L'Avion is a successful airline that has built up a premium business between Orly and New York in a relatively short period of time. It has many synergies with OpenSkies and buying it provides OpenSkies with a larger schedule and an established customer base in the Paris-New York market." It is also the quickest way to grow OpenSkies and get its hands on the slots on both ends.

Christophe Bejach, co-founder and chairman of L'Avion, said: "We are happy to merge our operation with OpenSkies. This transaction will strengthen our current base and enable the combined airline to grow faster and stronger. Our staff will benefit from the ambition and recognised expertise of the buyer and our customers will have access to an even better service, on a larger scale."

He does not mention that getting out of the business with the shirt on his back and his investment in the current environment make him look like a genius. It must be great to have the personal risk gone. Well done Mr. Bejach, you're a very lucky man.