Friday 11th January 2019
Virgin Atlantic & Stobart Group Back Flybe Takeover
Just two months after the strugling airline, Flybe, was put up for sale, an agreement for a takeover has been announced by a consortium managed by Virgin Atlantic.
Virgin Atlantic has a 30% stake in the consortium along with Stobart Group who also own a 30% stake. Stobart Group already operates some of the Flybe flights using its airline, Stobart Air under a franchise or wet lease agreement with Flybe. A hedge fund, Cyrus Capital Partners, has the remaining 40 per cent share in a group called Connect Airways.
The airline is said to be getting a rebrand, with the fleet being branded with the Virgin brand.
After purchasing the airline for just 1p per share, at a total of £2.2million, the group will inject £20million to keep the loss-making airline in the air and then a further £80million will be available in future funding.
Flybe currently fly from 27 UK airports including routes from Durham Tees Valley and Newcastle Airports. No mention has been made about the future route network, but we suspect there will be route cuts somewhere if the airline is to cut its losses.
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