PPRuNe Forums - View Single Post - Flybe - 3 (Including the FlyBe/BACon merger)
Old 7th Nov 2006, 14:48
  #16 (permalink)  
PAXboy
Paxing All Over The World
 
Join Date: May 2001
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goldeneye
This really did come out of no where. Did not see it coming. BA did not give Connect a chance its not even a year old yet and there offloading it to BE.
I doubt it was out of the blue at all. BACon was created in order that it could be sold off. It means that this decision was taken a year ago. At that time they would only have had a list of possible customers but they created the 'vehicle' as they are often called, so that they could send it on it's way as soon as a buyer was found.

Some of the a/c will go back and, even at a high cost, this can be offset against the savings and so they free up their asset register and the maintenance overhead.

Also, by transferring the company not the staff they postpone many of the problems to be solved by FlyBe at a later stage. As has been said, after 18 months, "Very sorry boys and girls ..." and then go for the PLC which will make a killing and BA will get 15% of it. All in all - a smart looking plan for BA.
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