The Stobart group has pulled its plans to make a formal offer for UK regional carrier Flybe after its proposal was rejected – sending the airline’s share price down by nearly 25 per cent today.
The Group said it was “unable to reach an agreement on satisfactory terms” and added the board determined it was not in the shareholders’ best interests to increase its latest proposal for Flybe above the level which was rejected.
Flybe said today that its board “remains highly confident in the prospects” of the carrier and believes it will have an exciting future as an independent company.
The Stobart Group is the owner of London Southend Airport, Carlisle Lake District Airport and Stobart Air, which has a fleet of 17 and flies to 22 destinations from bases in Cork, Dublin, the Isle of Man and London Southend.
In November, Flybe reported a drop of nearly 50 per cent in profits in its first half of the year results, but has vowed to carry out a range of measures including working at keeping costs down, and reducing its fleet size.