Airlines Flybe in talks about potential sale
United Kingdom´s Flybe is currently in talks with competitor airlines over a possible sale of the airline.
The Exeter-based regional carrier has published, that it seeks to go on-sale after the costs of fuel has been constantly rising. The airline has furthermore struggled to cope with increased competition and the uncertain outcome of the Brexit negotiations.
Flybe said that it will undertake a review of strategic options to address the current financial circumstances. The carrier contemplates to initiate further cost and capacity saving measures.
According to media reports, Flybe has already entered into talks with competitor airlines such as Ryanair, EasyJet or Stobart Air over a possible sale. Stobart Air is deemed to be the favourite for a takeover, as the Group has its operational base at London Southend, just like Flybe. Aviation media also supposes, that Stobart was already willing to buy Flybe last year. Back then, the airline refused to sell.
Extended measurements or the sale of the airline will be introduced in order to strengthen the balance sheet and cash resources. Flybe has appointed the bank Evercore to deal with possible transactions.
In the financial report, the airline published that it already had reduced its capacity in the last quarter. Compared to H1 2017/18, the carrier offered 600 less seats (6,240 seats), while welcoming slightly more passengers. The total UK revenue rose by 7.2% compared to last year.
Flybe had to cut costs after the regional carrier experienced financial losses over the past years. Over this course, the carrier also decided to sell its Embraer E195s in the future. In May 2018, the airline announced to reduce its overall fleet. By 2020, the airline targets to operate with a 70 airframes strong fleet. Currently, Flybe´s fleet consists of 76 aircraft, including 5 ATR 72s, 54 Dash 8s, 11 Embraer 175 and six 195s.
Europe´s largest regional airline currently operates 192 routes to 14 countries. Flybe departs from 75 airports in the UK and Europe and is the largest scheduled airline at 12 UK airports.
Source © flybe.com