Home Breaking Struggling Flybe rescued by Virgin-led consortium for £2.2m

Struggling Flybe rescued by Virgin-led consortium for £2.2m

by Purvai Dua
11th Jan 19 9:13 am

Two months after Flybe put itself up for sale, a consortium of Virgin Atlantic Ltd, Stobart Group Ltd, and Cyrus Capital Partners have agreed to buy the British regional airline for £2.2m.

The offer values Flybe at 1p per share, a 94 percent discount to company’s Thursday’s close of 16.38 pence.

Virgin Atlantic has a 30 per cent stake in the venture, as does Stobart Group – whose Irish-based airline, Stobart Air, already operates some of its flights under the Flybe brand.

A hedge fund, Cyrus Capital Partners, has the remaining 40 per cent share in a group called Connect Airways. However, Flybe will be re-named after Sir Richard Branson’s airline.

Virgin’s chief executive, Shai Weiss, vowed “to bring Virgin Atlantic service excellence to Flybe’s customers”.

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