Virgin Atlantic and Stobart buy Flybe for £2.2M

Business 1/11/2019, 10:48 AM
Virgin Atlantic and Stobart buy Flybe for £2.2M

A consortium led by Virgin Atlantic Airways and Stobart Group bought United Kingdom-based regional airline Flybe for £2.2m, according to various media reports on Friday.

Under the terms of the deal the consortium, which is known as Connect Airways and also includes venture capital firm Cyrus, will pump £100 million into the struggling airline. This will be comprised of an initial £20 million loan followed by a further £80 million investment in the airline. Flybe will be a part of the Virgin Atlantic brand and its shareholders will receive 1p per share.

Virgin Atlantic thereby completed a process which had begun in November when they announced that they were engaged in takeover talks with Flybe. British Airways and Iberia's owner International Consolidated Airlines Group SA was also a candidate at one point but ultimately lost to Richard Branson's airline.

Breaking the News / DZ

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