LOF

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LOF
300px
IATA ICAO Callsign
LO LOF LOF
Founded3 April 2008
Commenced operations28 May 2008
Ceased operations1 January 2019
HubsHuwei–Paktian
Fleet size128
Destinations48
HeadquartersHuwei, Hong Leng Te, Zong
Key peopleDude, CEO
RevenueIncrease TBC billion (2015)
ProfitDecrease TBC million (2015)
Websitelof.kom

LOF Luftostfosia (Standard Zong: 爐筟, Lô͘fū; Mercian: "Air East Fosia"), legally Luftostfosia AG, was a Zong low-cost airline founded in 2008, headquartered in Huwei, Hong Leng Te, Zong, with its primary operational bases at Huwei–Paktian airport. The company's business model was to stimulate demand by providing frequent and affordable air service to underserved markets throughout East Fosia.

On 4 March 2016, SAK Internationale announced it will acquire LOF for ₭55 per share. The acquisition was completed on 8 October 2018. The total price for the acquisition was approximately ₭3.5 billion. The company continued operations until 1 January 2019, when all its operations were transferred to SAK Ostfosia, its successor airline.

History

Early years (2008-2010)

LOF was incorporated in Hong Leng Te in April 2008. LOF started by following Saihong's approach of offering low-cost travel, but sought to distinguish itself by its amenities, such as in-flight entertainment, TV at every seat, and satellite radio.

LOF inaugurated services in the Zong domestic market on 15 December 2008 between three airports: Huwei-Paktian, Auxin and Yuji. It launched operations with three Böing 737-700 aircraft.

2010s

On 18 June 2010, LOF announced that it would reduce its medium-haul services by 50 percent and its domestic services by 10 percent to increase profitability.

In March 2012, SAK Internationale, a Varkan company, bought approximately 15 per cent of the voting shares in LOF.

In April 2014, LOF expanded its codeshare arrangements with Limonia's Airline. LOF and Airline had cooperated since October 2011. New services included codeshare flights via Auxin to city, city and city.

On 7 January 2015, LOF appointed ??, former Chief Strategy and Planning Officer, as the company's CEO, replacing ??.

LOF started flights between Huwei-Paktian and ?? on 23 March 2015. It cancelled flights to ??, ?? and ??.

On 24 September 2016, LOF cancelled the remaining 30 orders for Böing 737-800s as part of their restructuring programme.

In October 2016, LOF announced the termination of flights to Auxin from both Kimsa and Lekto, therefore withdrawing entirely from these two Zong airports.

LOF announced a net loss for 2016 of ₭268m (₭156m loss in 2015). The airline's revenues in 2016 stagnated at ₭2.24 billion.

In September 2017, CHHK phased out the last Böing 737-700s owned by the company. All Böing 737-800s were to be phased out by 2018 as LOF plans to focus their short- and medium-haul fleet on the EmAe E195 to cut costs.

In November 2017, LOF announced the closure of its Auxin hub by ceasing all of the hub's seven Limonian domestic routes by 3 April 2018. Some days earlier, the airline announced plans to add flights from Huwei-Paktian to ??, ??, ?? and ?? by spring 2018.

SAK Internationale acquisition (2018)

In February 2018, the airline confirmed it was considering a sale. SAK Internationale and Saihong made offers to purchase the airline. On 4 March 2018, SAK Internationale announced that it had agreed to buy LOF for ₭2.8 billion. Including debt and aircraft leases, the transaction is worth about ₭4.2 billion.

SAK Internationale announced LOF would be re-branded as SAK Ostfosia. SAK Internationale will continue to honor the loyalty programs of both groups with no foreseen changes. LOF's founder ?? stated that he was disappointed by the acquisition by a non-Fosian company. Should the merger agreement be terminated by LOF, they may be required to pay SAK Internationale a termination fee equal to ₭100 million. President and chief executive officer of SAK Internationale, Iase Zautashvili, stated in May 2018 that LOF would remain as its own brand as a subsidiary of SAK Internationale. On May 9th, LOF's shareholders approved the merger, leaving the approval by the Zong Ministry of Justice as the only remaining hurdle. The acquisition was completed on 8 October 2018 with the approval of the Ministry of Justice.

Fleet

SAK Ostfosia fleet
Aircraft In Service Orders Passengers Notes
J W Y Total
Aikok A320-200 32 186 186
EmAe 195 96 124 124 Largest operator of EmAe 195 in Adonia
EmAe E195-E2 150 144 144
Total 128 150