Flybe rescued by Virgin Atlantic and Stobart consortium

Virgin Atlantic and Stobart Group have swooped on regional airline Flybe in a £2.2 million deal which will see the creation of a new airline group.

The companies, in conjunction with Cyrus Capital Partners, have agreed an offer of just 1p per share for Flybe, which put itself up for sale in November.

Under the plans, the airline will be combined with Stobart Air in a joint venture called Connect Airways.

Cyrus will own 40% of the new company, while Virgin and Stobart will take 30% apiece.

The three companies have committed to make a £20 million bridge available to support Flybe’s current operations, while an additional £80 million will be provided to the combined group.

Flybe chief executive Christine Ourmieres-Widener said the firm had been forced to seek a buyer due to higher fuel costs, currency fluctuations and Brexit uncertainty (Flybe/PA)

Flybe chief executive Christine Ourmieres-Widener said the firm had been forced to seek a buyer due to higher fuel costs, currency fluctuations and Brexit uncertainty.

“We have been affected by all of these factors which have put pressure on short-term financial performance,” she said.

“At the same time, Flybe suffered from a number of legacy issues that are being addressed but are still adversely affecting cashflows.

“By combining to form a larger, stronger group, we will be better placed to withstand these pressures. We aim to provide an even better service to our customers and secure the future for our people.”

- Press Association


More on this topic

Child, 11, hurt in suspected shooting in London

Winston Churchill’s hat and cigar feature on Antiques Roadshow

Sixth Birmingham mosque targeted by vandals

Two arrested after five mosques have windows smashed in Birmingham

More in this Section

Accountancy firm sued over audits for investment firms who fell victim to Madoff Ponzi scheme

Minister's challenge over decision to strike out charges linked to Clerys redundancies opens

Facebook takes steps to reduce spread of false stories during India election

Legal voices in Cork endorse 'alternative dispute resolution'


Lifestyle

Soya, oat or almond? 4 of the most popular milk alternatives explained

This is how your menstrual cycle can help inform your workout

Totally fabricated: How textiles can revatalise your home

25 years on: Do you recall where you were when you heard the news of Kurt Cobain's death?

More From The Irish Examiner