Flybe
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IanFarquharson
Well-Known Member
BHX is Flybe most profitable base so in the short term (hopefully long term too) I see very little change in the current schedule.
Virgin long haul will not come to BHX any time soon but what we have is sustainable without LH connections, BHX has the highest percentage of business travellers of any non-London airport so if anything with the future of Flybe safer than it was two weeks ago BHX could flourish and become more profitable. The problem with bases such as Manchester is a lot of routes have competition which drives prices lower hence little profit for Flybe.
Virgin long haul will not come to BHX any time soon but what we have is sustainable without LH connections, BHX has the highest percentage of business travellers of any non-London airport so if anything with the future of Flybe safer than it was two weeks ago BHX could flourish and become more profitable. The problem with bases such as Manchester is a lot of routes have competition which drives prices lower hence little profit for Flybe.
We’re told Eurohub was profitable for BA, but it didn’t stop them restructuring their business into a hub and spoke operation.
Depends what Virgin and Stobart have planned.
andrew.clarkson
Well-Known Member
- Apr 18, 2013
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Hi there Ray and all, if the Eurohub is still available, then the airport should be offering it to Virgin as there Base which would be perfect because it is being used again and not left empty and being wasted and not earning money... AndyC
richard winterbourn
Well-Known Member
- Aug 19, 2015
- 394
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Andy, Eurohub is not being left empty and wasted. Indeed it is an essential part of the BHX complex and now houses Ryanair and Flybe services, and maybe other services as well. I use this terminal frequently and find it a well-run part of the overall BHX experience.
- Moderator
- #706
I have exactly the same concerns.
If a complete change of direction is on the cards it's quite conceivable that any routes that don't fit into that particular plan get dropped, profitable or not.
I hope that BHX aren't being too complacent on this and have at least moved to seek some assurances, I guess even then things can change.
Lets hope that yet again we aren't saying that 'we backed the wrong airline'.
- Moderator
- #708
Their schedule is unchanged for Summer 2019. Any changes will likely happen from winter onwards.
Thanks.
Flybe seeks to reassure investors as takeover falters
Flybe has told investors it expects the takeover of the airline to be complete on February 22nd. The regional carrier signed an acquisition deal with Connect Airways - a consortium led by Virgin Atlantic and Stobart Group - earlier this month.
Connect offered shareholder one pence per share, valuing the carrier at around £2.2 million.
However, Flybe failed to meet the conditions for receiving a promised £20 million bridge loan under the original takeover deal.
This followed a decision by credit card companies to clamped down amid fears over the financial security of the airline.
In response, Connect Airways has now provided the first £10 million of the £20 million secured committed credit facility referred to in the initial announcement. It is hoped the cash will maintain the viability of Flybe until the takeover can be completed.
The transaction is now expected to close next month and will not require shareholder approval.
Flybe has told investors it expects the takeover of the airline to be complete on February 22nd. The regional carrier signed an acquisition deal with Connect Airways - a consortium led by Virgin Atlantic and Stobart Group - earlier this month.
Connect offered shareholder one pence per share, valuing the carrier at around £2.2 million.
However, Flybe failed to meet the conditions for receiving a promised £20 million bridge loan under the original takeover deal.
This followed a decision by credit card companies to clamped down amid fears over the financial security of the airline.
In response, Connect Airways has now provided the first £10 million of the £20 million secured committed credit facility referred to in the initial announcement. It is hoped the cash will maintain the viability of Flybe until the takeover can be completed.
The transaction is now expected to close next month and will not require shareholder approval.
BHXsupporter
Well-Known Member
- Nov 6, 2013
- 498
- 63
Gosh, hanging in there by a threadstring!
Just thinking, Delta are financially involved through Virgin Atlantic, thus shall need to get approvals from FAA and SEC but need these authorities to come out of the Federal Government shutdown which has just ended.
My thoughts are cheap, any offers?
My thoughts are cheap, any offers?
I cant see this changing things too much but maybe not a done deal ?
Flybe shares fly high
Shares in budget airline Flybe have soared 31% in morning trade to 4.5p after it confirmed that a major investor has requested the company convene a general meeting to consider resolutions to replace its chairman.
Flybe is being taken over by Virgin Atlantic, Stobart Group and investment firm Cyrus Capital Partners, but investor Hosking Partners objects to the deal, which will see Flybe sold for 1p a share.
Flybe shares fly high
Shares in budget airline Flybe have soared 31% in morning trade to 4.5p after it confirmed that a major investor has requested the company convene a general meeting to consider resolutions to replace its chairman.
Flybe is being taken over by Virgin Atlantic, Stobart Group and investment firm Cyrus Capital Partners, but investor Hosking Partners objects to the deal, which will see Flybe sold for 1p a share.
Interesting that the ex-Stobart boss is maintaining his interest in Flybe, should the deal on the table not complete. Not convinced he has the worth to mount a full takeover but who knows
Struggling airline confirms approach from former Stobart boss
Airline Flybe has confirmed that it has received an offer from former Stobart boss Andrew Tinkler.
The board of the struggling airline has confirmed it has received a “very preliminary, short and highly conditional outline contingency proposal” from Mr Tinkler. The businessman was at the centre of a row last summer which saw him sacked from the board of the Stobart Group. Flybe said Mr Tinkler’s offer “envisages a capital injection and replacement of the funding provided by Connect Airways”.
Connect is a Virgin-led group which has offered to provide a £20m liquidity injection to keep the airline afloat. Flybe said Connect Airways had provided the first £15m of the £20m credit facility it announced in January.
Flybe issued a statement to the Stock Market this morning. It said: “Flybe received a very preliminary, short and highly conditional outline contingency proposal from Mr Tinkler which envisages a capital injection and replacement of the funding provided by Connect Airways Limited (the “Preliminary Proposal”). “Flybe confirms that its advisers have held an initial discussion with Mr Tinkler’s advisers in relation to the preliminary proposal and that no formal proposal was made. For the avoidance of doubt, the preliminary proposal does not contemplate an offer for the whole of Flybe or any other acquisition structure.
“The board understands that the capital injection under the preliminary proposal would only be provided by Mr Tinkler if the sale of Flybe’s operating businesses to Connect Airways in accordance with the share purchase agreement dated 15 January 2019 does not complete.
“The board does not consider that the Preliminary Proposal offers the certainty required to secure the future of Flybe. “Accordingly, the board emphasizes to shareholders that it continues to regard the arrangements entered into with Connect Airways as being the only viable option available to the Company which provides the security that the business needs to continue to trade successfully. The arrangements with Connect Airways preserve the interests of Flybe’s stakeholders, customers, employees, partners and pension members.”
Connect Airways is a joint venture company which is owned 40% by DLP Holdings., a company wholly-owned by funds managed by Cyrus Capital Partners, 30% by Stobart Aviation, a wholly-owned subsidiary of Stobart Group Limited, and 30% by Virgin Travel Group Limited, a wholly-owned subsidiary of Virgin Atlantic.As part of its proposed acquisition of Flybe, Connect Airways committed to make available a £20 million bridge facility to support Flybe’s ongoing working capital and operational requirements. Following completion it intends to provide up to £80 million of further funding to invest in its business and support its growth.
Mr Tinkler said: “We look to the board to continue engaging positively with regard to our outline proposal, for the benefit of all shareholders.” Last month Mr Tinkler bought a 10 per cent stake in the British airline, just as it was announced that the consortium, which also includes Stobart, was set to purchase the struggling airline.
Flybe announced it was seeking a sale at the end of last year after profits fell 54 per cent for the six months to the end of September.
The fall in profits was triggered by higher fuel prices, a weaker Pound and falling customer demand.
Struggling airline confirms approach from former Stobart boss
Airline Flybe has confirmed that it has received an offer from former Stobart boss Andrew Tinkler.
The board of the struggling airline has confirmed it has received a “very preliminary, short and highly conditional outline contingency proposal” from Mr Tinkler. The businessman was at the centre of a row last summer which saw him sacked from the board of the Stobart Group. Flybe said Mr Tinkler’s offer “envisages a capital injection and replacement of the funding provided by Connect Airways”.
Connect is a Virgin-led group which has offered to provide a £20m liquidity injection to keep the airline afloat. Flybe said Connect Airways had provided the first £15m of the £20m credit facility it announced in January.
Flybe issued a statement to the Stock Market this morning. It said: “Flybe received a very preliminary, short and highly conditional outline contingency proposal from Mr Tinkler which envisages a capital injection and replacement of the funding provided by Connect Airways Limited (the “Preliminary Proposal”). “Flybe confirms that its advisers have held an initial discussion with Mr Tinkler’s advisers in relation to the preliminary proposal and that no formal proposal was made. For the avoidance of doubt, the preliminary proposal does not contemplate an offer for the whole of Flybe or any other acquisition structure.
“The board understands that the capital injection under the preliminary proposal would only be provided by Mr Tinkler if the sale of Flybe’s operating businesses to Connect Airways in accordance with the share purchase agreement dated 15 January 2019 does not complete.
“The board does not consider that the Preliminary Proposal offers the certainty required to secure the future of Flybe. “Accordingly, the board emphasizes to shareholders that it continues to regard the arrangements entered into with Connect Airways as being the only viable option available to the Company which provides the security that the business needs to continue to trade successfully. The arrangements with Connect Airways preserve the interests of Flybe’s stakeholders, customers, employees, partners and pension members.”
Connect Airways is a joint venture company which is owned 40% by DLP Holdings., a company wholly-owned by funds managed by Cyrus Capital Partners, 30% by Stobart Aviation, a wholly-owned subsidiary of Stobart Group Limited, and 30% by Virgin Travel Group Limited, a wholly-owned subsidiary of Virgin Atlantic.As part of its proposed acquisition of Flybe, Connect Airways committed to make available a £20 million bridge facility to support Flybe’s ongoing working capital and operational requirements. Following completion it intends to provide up to £80 million of further funding to invest in its business and support its growth.
Mr Tinkler said: “We look to the board to continue engaging positively with regard to our outline proposal, for the benefit of all shareholders.” Last month Mr Tinkler bought a 10 per cent stake in the British airline, just as it was announced that the consortium, which also includes Stobart, was set to purchase the struggling airline.
Flybe announced it was seeking a sale at the end of last year after profits fell 54 per cent for the six months to the end of September.
The fall in profits was triggered by higher fuel prices, a weaker Pound and falling customer demand.
Preliminary says it all. This is going to drag on.
Timetable of takeover Flybe directors say take the 1p or get nothing as they will just close the airline
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FLYB/13962430.html
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/FLYB/13962430.html
- Moderator
- #718
I hope BHX management are talking to Ryanair and/or easyJet.
This situation reminds me of Brexit, everyone is pulling in different directions and it's the workers who stand to suffer if the bigwigs can't compromise on their personal interests.
This situation reminds me of Brexit, everyone is pulling in different directions and it's the workers who stand to suffer if the bigwigs can't compromise on their personal interests.
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