Flybe puts itself up for sale

Lloyd Doyle
November 16, 2018

Flybe said the decision to put itself up for sale comes amid a range of options being considered as it battles against challenging conditions in the airline industry.

It has appointed Evercore as its financial adviser to assist with the review, though it said "there can be no certainty that an offer will be made".

Flybe, whose roots date back to 1979, has 78 planes operating from smaller airports such as London City, Southampton and Norwich to destinations in the United Kingdom and Europe.

It carries around eight million passengers a year.

British infrastructure and support services company Stobart Group scrapped plans to buy Flybe in March after being rebuffed.

But in the six months to the end of September, Flybe's pre-tax profits fell 54 per cent to £7.4m, compared with the same period previous year.

Flybe reported a 49 percent rise in adjusted profit before tax for the six months ended September 30. "Continued improvements are being seen into quarter three which demonstrates the popularity of Flybe for our customers", Ourmières-Widener is quoted as saying in a statement.

Airlines have been looking to consolidate in many markets as a result of rising running costs, largely higher fuel prices, and increased competition from budget carriers.

"We are responding to this by reviewing every aspect of our business, especially further capacity reduction, cash management and cost savings", she added.

"It is now expected that any party interested in participating in the formal sale process will, at the appropriate time, enter into a non-disclosure agreement with Flybe on terms satisfactory to the board of Flybe", the carrier said in a statement.

Flybe said it was also exploring a possible move to an LSE standard listing, from its current premium listing, saying it would provide the company more flexibility on divestments.

Sources within the airline said that at least 3 potential new owners are in talks and are not necessarily existing airline companies.

Other reports by Iphone Fresh

Discuss This Article