Stobart waits in wings
Struggling Flybe puts itself up for sale as costs rise
The airline is struggling with rising costs
Flybe has put itself up for sale as a result of the weak pound and higher fuel costs and said it is in discussions with a number of strategic operators.
The airline, which provides a number of short haul flights around the UK and Europe, warned last month that full-year losses would hit £22m. Its shares have fallen by almost 75% since September.
The Exeter-based company, which issues interim results today, is now valued at about £25m compared to £215m when it floated on the stock exchange in 2010. Bankers at Evercore have been brought in to handle the talks about a potential deal
It is thought Stobart Group – which pulled out of a bid for the airline earlier this year – could revive its interest. It has 78 planes operating from smaller airports and carrying eight million passengers a year on 210 routes.
However, it has been struggling to recover from a costly IT overhaul and has been trying to reduce costs.
Last month, Flybe’s chief executive Christine Ourmieres-Widener said it was reviewing “further capacity and cost-saving measures”.