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Flybe’s sale for £2.8 million is complemented by a £20 million bridging loan


Virgin-backed consortium rescues loss-making Flybe


Group acquires ailing regional carrier and vows to ‘secure its long-term future’. Ian Taylor reports


Virgin Atlantic stepped in as part of a consortium to save Flybe last week, joining Southend airport owner Stobart Group and investment ϐirm yrus apital Partners in a takeover. Flybe’s board accepted a bid


of just £2.2 million, subsequently increased to £2.8 million. However, the deal includes a pledge of a bridging loan of up to £20 million to enable Flybe to continue operating, £10 million of which was made available this week. The regional carrier was put up for sale in mid-November after


120travelweekly.co.uk17 January 2019 issuing a proϐit warning in ctoberǡ


when it forecast an annual loss of £22 million. That followed a £19 million loss the previous year. It’s understood that credit-card companies have withheld booking payments until the carrier has secured its ϐinancial positionǤ Flybe and its prospective new owners acknowledged: “This has materially and rapidly weakened the company’s cash position.” The takeover consortium established a new company, Connect Airways, to acquire Flybe, which will be rebranded as part of


Virgin Atlantic. Yet the purchasers said Flybe would continue to operate independently under its own air operating certiϐicatesǤ Stobart Group’s Stobart Air,


which operates on behalf of Flybe from Southend under a franchise agreement, will form part of Connect Airways, as will Stobart aircraft-leasing company Propius. Virgin Atlantic will own 30% of Connect Airways, Stobart Group 30% and Cyrus Capital 40% through subsidiary DLP Holdings. The deal is subject to approval by Flybe shareholders and by regulators, although neither are expected to stand in the way. Cyrus, Stobart and Virgin Atlantic pledged the deal would “provide a


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