Connect Airways consortium completes takeover of Flybe

posted on 22nd February 2019 by Justin Burns
Connect Airways consortium completes takeover of Flybe

Connect Airways – consortium led by Virgin Atlantic and Stobart Air has completed the takeover of cash-strapped regional carrier Flybe.

All Flybe assets and operations are now owned by Connect Airways and Flybe flights continue to operate as normal, according to a statement from the company. The consortium also includes hedge fund company Cyrus Capital.

Connect Airways had taken control of Flybe subsidiaries, Flybe Limited and Flybe.com Limited in a deal on 15 January valued at £2.8 million or one pence per share.

Earlier this week, Flybe rejected a last minute takeover bid to inject £65 million into the carrier at 4.5 pence per share led by US airline Mesa – as said

Flybe Group said in a investor statement that Flybe’s assets and operations are now owned by Connect Airways and Flybe flights continue to operate as normal.

The statement added that Flybe Group plc is now a non-trading entity with no subsidiaries and no material assets other than the limited cash received under the SPA, which is required to cover transaction, residual and rundown costs of the company.

The statement also said as previously announced, if the scheme of one pence per share is not approved by shareholders at meetings on 4 March, that Flybe directors intend to take steps to wind-up Flybe Group plc.

Flybe operates the widest domestic route network in the UK – about 53 per cent of domestic flights – running 190 routes serving 12 countries from 73 departure points in the UK and Europe.

It operates a fleet of 76 aircraft – 54 Bombardier Q400, six Embraer E195, 11 E175 and five ATR and is the largest scheduled operator at Aberdeen, Belfast City, Birmingham, Cardiff, Doncaster Sheffield, Exeter, Glasgow, Isle of Man, Jersey, Manchester, Newquay and Southampton airports.