Consortium makes offer
Virgin Atlantic heads £2.2m deal to acquire troubled Flybe
Flybe: suffering from higher costs
Virgin Atlantic has joined forces with Stobart Aviation and Cyrus Capital Partners in a joint bid to buy Flybe in a deal valuing the troubled regional airline at £2.2 million.
Their Connect Airways consortium will also provide £100m worth of loans and investment for Flybe. Before the deal is completed, Connect Airways will acquire Stobart Air, Stobart’s regional airline and aircraft leasing business.
Stobart Air and Flybe will be combined and will trade under the under the Virgin Atlantic brand.
Flybe’s chief executive Christine Ourmières-Widener, said: “The industry is suffering from higher fuel costs, currency fluctuations and significant uncertainties presented by Brexit.
“We have been affected by all of these factors which have put pressure on short-term financial performance. 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.”