EasyJet has completed the acquisition of GB Airways, a budget provider of flights to Spain and elsewhere, for a total of £103.5 million.

Announcing the acquisition as part of its expansion strategy, EasyJet will be able to consolidate and strengthen its European flight routes, gaining an even bigger base at Gatwick airport thanks to the GB Airways slots.

The budget carrier acquired by EasyJet is currently a British Airways (BA) operated provider, flying 34 routes from Gatwick and Heathrow airports, and six from Manchester.

Some GB Airways routes will continue to be operated under the BA brand until March 2008, but in losing flights to EasyJet, BA plans its own routes to continue serving Spain, Portugal and elsewhere.

Planning to continue running from Heathrow and Gatwick, BA is looking to serve the Costa del Sol resort Malaga from both London airports, as well as other Iberian locations like Faro, Gibraltar and Ibiza.

Meanwhile EasyJet highlighted the benefits it would draw from the acquisition: “By winter 2008/09 GB Airways will be fully consolidated into the EasyJet business model, releasing cost savings.”