Connect Airways: Difference between revisions
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== Future == |
== Future == |
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The consortium's aim is to operate Flybe and Stobart Air under |
The consortium's aim is to operate Flybe and Stobart Air under a new Virgin brand (with the name still to be announced) creating a "fully-fledged UK network carrier" with an enhanced presence at Heathrow and Manchester airports.<ref name="ft-20190111">{{cite news |title=Virgin Atlantic and Stobart offer to buy UK regional carrier Flybe |url=https://www.ft.com/content/276c0be6-1570-11e9-a581-4ff78404524e |work=Financial Times |date=11 January 2019}}</ref> Flybe and Stobart Air will however retain their own [[Air Operator Certificate]]s, <ref name="buyingbusinesstravel-20190111" /> and Stobart Air's franchise and wet lease operations for other airlines will continue.<ref name="ft-20190111" /> |
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== References == |
== References == |
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Revision as of 22:18, 8 May 2019
| Company type | Private limited company[1] |
|---|---|
| Industry | Aviation |
| Founded | 18 December 2018[1] |
| Founder | Virgin Atlantic Stobart Aviation |
| Headquarters | London, UK |
| Products | Airline |
| Owners |
|
| Subsidiaries |
Connect Airways is a British consortium formed in December 2018[1] to acquire the British regional airline Flybe,[2] which had put itself up for sale in November 2018 after issuing a profit warning the previous month.[3]
The consortium was founded by Virgin Atlantic and Stobart Aviation, which each hold 30% of the capital. The remaining capital is held by fund management company Cyrus Capital Partners, through its Luxembourg-based vehicle DLP Holdings.[2] Cyrus Capital had previously worked with the Virgin Group on the launch of its Virgin America airline and its subsequent sale to Alaska Airlines.[4]
The purchase of the operating assets of the Flybe Group was completed on 21 February 2019.[5]
History
On 11 January 2019, Connect Airways made a £2.2 million cash offer to take over the entire share capital of Flybe, subject to shareholder and court approval. The offer also included the acquisition of Stobart Air shortly before the Flybe takeover.[2]
On 15 January 2019, Connect Airways increased its offer by £600,000, and set out improved bridging loan conditions, with £10 million to be released immediately to support Flybe's business, and a further £10 million available. Subsequent funding of £80 million was also confirmed. Flybe Group accepted the £2.8 million offer and noted that its shares had been transferred to a standard listing, effective on 17 January, meaning that shareholder approval for the sale of the group's operating assets, i.e. the airline and the website, would no longer be required.[6] The deadline for the deal to close was 22 February 2019.[7]
On 21 February 2019, the Flybe Group confirmed that its operating assets, i.e. the airline and the website, had indeed been transferred to Connect Airways, despite a last-minute rival bid.[5] The sale of the parent company, Flybe Group plc – now an empty shell – was confirmed by its shareholders at a meeting on 4 March[8] and became effective on 11 March.[9]
Future
The consortium's aim is to operate Flybe and Stobart Air under a new Virgin brand (with the name still to be announced) creating a "fully-fledged UK network carrier" with an enhanced presence at Heathrow and Manchester airports.[10] Flybe and Stobart Air will however retain their own Air Operator Certificates, [4] and Stobart Air's franchise and wet lease operations for other airlines will continue.[10]
References
- ^ a b c "Connect Airways Limited – Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 11 January 2019.
- ^ a b c d Kaminski-Morrow, David (11 January 2019). "Virgin Atlantic and Stobart link up to take over Flybe". Flightglobal.com.
- ^ "Flybe up for sale after profit warning". BBC News. 14 November 2018.
- ^ a b Dyson, Molly. "Virgin Atlantic and Stobart agree Flybe take-over". buyingbusinesstravel.com.
{{cite news}}: Cite has empty unknown parameter:|1=(help) - ^ a b Warrington, James (21 February 2019). "Flybe completes sale to Virgin-led consortium". www.cityam.com.
- ^ Gallagher, Rosemary (15 January 2019). "Flybe-Connect Airways agreement reached on £2.8m deal". businessInsider.
- ^ Reals, Kerry. "Connect Airways raises takeover offer for Flybe". atwonline.com.
- ^ "Shareholders Approve Connect Airways Acquisition". otp.investis.com. Flybe Group plc.
- ^ "Scheme effective & intended adjournment of Meeting". otp.investis.com. Flybe Group plc.
- ^ a b "Virgin Atlantic and Stobart offer to buy UK regional carrier Flybe". Financial Times. 11 January 2019.