Airline, Flybe, have confirmed to be in talks with strategic operators, about a potential sale of the company. This announcement saw shares fall immediatly.
Update: 23/11/2018 It has been confirmed that Virgin Airlines are in talks to buy the stricken airliner.
The struggling airline put itself up for sale, following disruption caused by higher fuel costs and currency volatility – the challenges faced by the sector currently. Brexit is a further uncertainty for the sector, leaving great risk and potential damage for the business.
‘’Further capacity and cost saving measures’’ are being looked at. These include reducing capacity, focusing on the most popular routes, cutting many jobs and closing unprofitable sites.
Potential buyers have not been named, though Southend Airport Owner, Stobart Group, who abandoned a previous bid earlier this year, are thought to be amongst them.
The carrier airline saw a fall in more than half their pre-tax profits (£7.4m) in the six months to the end of September, compared to the same period last year (£16.1m). A £12m loss for the full year is expected, after consumer demand is expected to weaken, combined with a weaker pound and the impact of oil prices.
Chief Executive, Christine Ourmieres-Widener said that they are ‘’responding to this by reviewing every aspect of our business’.
We have seen Primera Air and Monarch Airlines collapse – will Flybe be next? Or can a deal be found to save the carrier airline?