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Virgin and Stobart take off with Flybe in cut-price deal

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By Mark Kleinman, City editor
Flybe, the regional airline, is close to being taken over by a consortium led by Virgin Atlantic in a cut-price deal that will underscore the aviation sector's huge financial challenges.
Sky News has learnt that Virgin Atlantic has agreed to join forces with Flybe's other suitor, Stobart Group, to form a new company that will also comprise the Stobart Air franchise operation.
An offer for Flybe worth significantly less than the company's closing share price on Thursday of 16.38p will be announced to the London Stock Exchange on Friday, according to sources close to the deal.
The takeover will come less than two months after Flybe put itself up for sale, blaming a toxic cocktail of currency volatility, rising fuel costs and Brexit-related uncertainty.
Although it is small in financial terms, Flybe remains one of the UK's best-known airline brands, carrying thousands of passengers between largely second-tier British airports as well as European destinations.
Under the terms of the proposed deal to be announced on Friday, Virgin Atlantic will operate the network of regional flights provided by a combination of Flybe and Stobart Air.
The carrier part-owned by Sir Richard Branson is expected to be the largest shareholder in the newly formed company, with Stobart Group and Cyrus Capital Partners owning smaller but still substantial stakes.
Stobart is understood to be contributing the assets of Stobart Air rather than any cash in exchange for its stake.
For Virgin Atlantic, control of Flybe's regional network will provide a valuable feed into its long-haul flights to international destinations.
Its return to the domestic UK aviation market will come four years after announcing the closure of Little Red, its previous attempt to make money from a notoriously difficult sector.
Flybe also has access to valuable take-off and landing slots at London Heathrow Airport which are ring-fenced for domestic flights.
The two carriers already operate a code-share pact aimed at improving access to Virgin Atlantic's long-haul routes for regional customers using the regional airline's flights into Heathrow and Manchester.
Rothschild, the investment bank, is advising Virgin Atlantic, while Evercore is advising Flybe.
The consortium's offer for Flybe is likely to value its shares at around£20m, providing few crumbs of comfort for the airline's long-suffering shareholders.
Nevertheless, if the deal is completed, it would be a significant combination in a British aviation sector which is viewed as requiring further consolidation.
Rising oil prices and the weakening of sterling have put airlines under intense pressure, with a deepening industry price war accentuating the financial squeeze.
Monarch Airlines crashed into insolvency in 2017, while more recently, Primera Air, a budget carrier which began offering long-haul flights from British airports last year, filed for administration.
Sir Richard launched Little Red in 2013 after gaining slots that arch-rival British Airways was forced to relinquish after its takeover of bmi.
However, the tycoon threw in the towel less than two years later, blaming the "meagre package of slots" with which it had operated.
Sources cautioned that the door remained open to another bidder for Flybe.
Virgin Atlantic is also entrenched in a process to change its ownership structure, having agreed a three-way deal last year with Air France-KLM and Delta Air Lines under which the Franco-Dutch group would acquire a 31% stake in Virgin Atlantic from Sir Richard's holding company for £220m.
Virgin Group intends to retain a 20% stake and the right to appoint the airline's chairman, while US-based Delta would retain its existing 49% shareholding.
The transaction remains subject to regulatory approvals, which could be affected by a no-deal departure by the UK from the European Union.
Virgin Atlantic's need to secure a berth as part of an alliance with better-resourced rivals was underlined again last year when it reported a £28.4m loss before tax and exceptional items for 2017.
The company announced a change of leadership in June, with Craig Kreeger due to step down next month as its chief executive after nearly six years at the helm.
Stobart, which has been at the centre of a bitter courtroom battle between board members and its former chief executive, abandoned a previous bid for Flybe last year.
Since confirming that it was exploring a sale, Flybe has taken further steps to shore up its finances, announcing an extension of its borrowing facilities and a £5m sale and leaseback of an aircraft hangar.
The Exeter-based carrier, which recently reported a halving of pre-tax profit for the first half of the year, is understood to require an immediate injection of capital.

 

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virgin mais uma vez vai se arriscar no short e medium haul.....

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Finalmente ela terá um feeder para seus voos internacionais, eles operam em que aeroporto londrino?

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7 hours ago, Luckert said:

Finalmente ela terá um feeder para seus voos internacionais, eles operam em que aeroporto londrino?

Heathrow e Gatwick

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20 hours ago, Luckert said:

Finalmente ela terá um feeder para seus voos internacionais, eles operam em que aeroporto londrino?

Isso se a BE conseguir existir.

Saiu hoje no Blue Swan panorama da empresa:

Established in 1979 as Jersey European Airways, Flybe is regional carrier headquartered in Devon. The carrier operates services within the United Kingdom, Ireland, the Channel Islands and Europe via its hub at Exeter International Airport. Flybe also operate from secondary hubs in Manchester, Belfast and Birmingham. The carrier was part of the Flybe Group PLC, which was acquired by Connect Airways on 11-Jan-2019. Connect Airways is a UK limited company and owned by Virgin Atlantic (30%), Stobart Aviation (30%), and DLP Holdings (40%) – a wholly owned company of Cyrus Capital. Flybe delisted from the London Stock Exchange following regulatory approval of the airlines sale to Connect Airways in Mar-2019. In Oct-2019, Flybe announced plans to rebrand as Virgin Connect in 2020.

GLOBAL RANKING (as at 13-Jan-2020)BE01.png

NETWORK MAP (as at 13-Jan-2020)BE02.png

DESTINATIONS (as at 13-Jan-2020)BE03.png

ANNUAL PASSENGER TRAFFIC (2010 – 2018)BE04.png

CAPACITY SNAPSHOT (versus same week last year)BE05.png

ANNUAL CAPACITY (2012-2020*)BE06.png(NOTE:The values for this year are at least partly predictive up to 6 months and may be subject to change)

MONTHLY CAPACITY AND SEASONALITY IN DEMAND (2017 – 2020*)BE07.png

CAPACITY SPLIT BETWEEN DOMESTIC AND INTERNATIONAL OPERATIONS (w/c 13-Jan-2020)BE08.png

BIGGEST NETWORK POINT (w/c 13-Jan-2020)BE2.png

BIGGEST DOMESTIC ROUTES BY CAPACITY (w/c 13-Jan-2020)BE091.png

LARGEST INTERNATIONAL MARKETS BY COUNTRY (w/c 13-Jan-2020)BE092.png

BIGGEST INTERNATIONAL ROUTES BY CAPACITY (w/c 13-Jan-2020)BE093.png

AVERAGE FLIGHT LENGTH (w/c 13-Jan-2020)BE094.png

FLEET SUMMARY (as at 13-Jan-2020)BE095.png

AVERAGE FLEET AGE (as at 13-Jan-2020)BE096.png

AIRCRAFT OWNERSHIP SPLIT (as at 13-Jan-2020)BE097.png

SYSTEM CARGO PAYLOAD (2010 – 2020*)BE098.png

https://blueswandaily.com/data-spotlight-flybe/

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Parece que chegaram em um acordo com o governo:

Flybe lands tax break in last-ditch government rescue


HMRC is to defer some of Flybe's tax liabilities as part of a last-ditch rescue deal, Sky News understands.

Mark Kleinman
City editor @MarkKleinmanSky

Tuesday 14 January 2020 22:13, UK

The struggling airline Flybe has averted collapse after reaching a deal with government that includes a tax holiday and the injection of tens of millions of pounds by its owners.

Sky News understands that HM Revenue & Customs (HMRC) agreed during talks on Tuesday to defer a substantial part of the regional airline's outstanding tax liability.

The agreement - reached between Flybe parent Connect Airways and the government following hours of negotiations - will remove the immediate threat to 2,400 jobs at the Devon-based carrier.

Sources said that discussions about a government loan to Flybe were continuing and could take some time to finalise.

Ministers have also agreed to conduct a review of Britain's regional connectivity, overseen by officials at the Department for Transport, while the Chancellor, Sajid Javid, will examine reforms to the way that Air Passenger Duty (APD) is applied to domestic flights.

Confirming the deal, Andrea Leadsom, the business secretary, tweeted: "Delighted that we have reached agreement with Flybe's shareholders to keep the company operating, ensuring that UK regions remain connected.

"This will be welcome news for Flybe's staff, customers and creditors and we will continue the hard work to ensure a sustainable future."

The news came after 48 hours in which Flybe had teetered on the brink of collapse, with the accountancy firm EY placed on standby to oversee a potential administration.

Grant Shapps, the transport secretary, added his endorsement of the rescue package, tweeting: "Delighted we've been able to work closely with Flybe to ensure Europe's largest regional airline is able to continue connecting communities across Britain."

He added that the DfT would launch an "urgent review into how we can level up the country by strengthening regional connectivity".

Ms Leadsom and Mr Shapps met Mr Javid earlier on Tuesday to urge him to back a bailout of the struggling airline, which is owned by a consortium led by Sir Richard Branson's Virgin Atlantic.

Flybe carries more than eight million passengers a year and plays an important role in connecting cities across the UK, such as Belfast, Norwich, Southampton and Bristol.

One source suggested that the tax element of the rescue deal involve a rolling three-month deferral of Flybe's APD bill, although this remained unconfirmed by the government or the airline.

An official announcement issued by the Treasury made no reference to the tax-related assistance to Flybe.

Mr Javid said: "I welcome Flybe's confirmation that they will continue to operate as normal, safeguarding jobs in UK [sic] and ensuring flights continue to serve communities across the whole of the UK.

"The reviews we are announcing today will help level up our economy.

"They will ensure that regional connections not only continue but flourish in the years to come - so that every nation and region can fulfil its potential."

The rescue package - which includes its owners beginning to inject more than £20m into the business - will provide Flybe with the working capital it requires to survive the tough winter months and implement a turnaround plan drawn up last year.

Connect Airways' other shareholders are Stobart Group and Cyrus Capital Partners, which are understood to have expressed reservations in recent weeks about committing further funding to the loss-making business.

While there will be relief that thousands of jobs have been saved, the deal will raise renewed questions that the government was not sufficiently motivated to help save much larger British airlines, including Monarch, which collapsed in 2017, and Thomas Cook, which went bust last September.

In Britain, Flybe has a significant presence at 25 airports including Belfast, Birmingham, Manchester and Southampton.

The consortium which took control of Flybe's assets last year pledged to pump £100m into its turnaround plan, with the airline due to be rebranded as Virgin Connect later this year.

The regional airline had come close to outright collapse a year ago amid an acrimonious takeover battle that left shareholders fuming that their equity had been left almost worthless.

Mark Anderson, Flybe's chief executive, said: "Flybe is made up of an incredible team of people, serving millions of loyal customers who rely on the vital regional connectivity that we provide.

"This is a positive outcome for the UK and will allow us to focus on delivering for our customers and planning for the future."

Lucien Farrell, Connect Airways' chairman, added: "We are very encouraged with recent developments, especially the government's recognition of the importance of Flybe to communities and businesses across the UK and the desire to strengthen regional connectivity.

"As a result, the shareholder consortium has committed to keep Flybe flying with additional funding alongside government initiatives."

https://news.sky.com/story/government-reaches-agreement-to-save-flybe-11908700

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Que a Flybe consiga se recuperar. Ela desempenha um papel importante no mercado regional britânico/europeu.

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12 hours ago, Leirbag said:

Que a Flybe consiga se recuperar. Ela desempenha um papel importante no mercado regional britânico/europeu.

Essa é a terceira regional a falir ou vender ,será mesmo que a Virgin irá manter a operação Intranet-Europa dessa empresa? Ou usar os slots para outros voos como fez a BA quando comprou da LH a outra regional britânica 

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4 hours ago, Luckert said:

Essa é a terceira regional a falir ou vender ,será mesmo que a Virgin irá manter a operação Intranet-Europa dessa empresa? Ou usar os slots para outros voos como fez a BA quando comprou da LH a outra regional britânica 

Que slots? A VS é a que mais luta para ampliar LHR e, consequentemente, os slots.

 

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2 minutes ago, A345_Leadership said:

Que slots? A VS é a que mais luta para ampliar LHR e, consequentemente, os slots.

 

Os slots da Flybe nesses dois aeroportos que coincidentemente a Virgin tb opera

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12 minutes ago, Luckert said:

Os slots da Flybe nesses dois aeroportos que coincidentemente a Virgin tb opera

Mas a Flybe não quebrou e se quebrar, os slots serão leiloados. Dependendo os slots valem mais que a empresa...

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35 minutes ago, A345_Leadership said:

Mas a Flybe não quebrou e se quebrar, os slots serão leiloados. Dependendo os slots valem mais que a empresa...

Mas foi o que eu quis questionar, se comprou por conta dos slots ou porque irá iniciar uma operação regional usando a Flybe.

 

 Não entendi porque me perguntaste que slots? 

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