FlyBe - 6
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Wideroe
Unless SAS are prepared to give Wideroe away I can't see how FlyBe could finance its acquisition. FlyBe's cash position is not at all good, and could get quite serious by the end of the winter.
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One big problem though, No money left in the pot!
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Yep. SAS might pay to get rid and perhaps Finnair would chip in. There is Dash 8 commonality. Didn't Flybe have 4 planes from Wideroe after the legs fell off?
Last edited by flyland; 13th Nov 2012 at 15:34.
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It goes with out question that the BAcon deal was great for the Flybe pocket. However I think the situation with Wideroe is different. SAS want to offload at a cost to generte cash for their own pocket! They won't be giving away money to a company to take it off their hands. I don't think we have the money for that. Famous last words of course.
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Flybe to buy Wideroe?
That's funny, I could have sworn I read a number of articles stating that Wideroe want to buy SAS!
I can see your logic in "suggesting" it with the fleet commonality and SAS's lack of funds but as other posters have stated BE don't have any money themselves! Plus if you had done the research like I have above it appears that Wideroe are clearly a profitable entity so likely the last thing they would sell!
I can see your logic in "suggesting" it with the fleet commonality and SAS's lack of funds but as other posters have stated BE don't have any money themselves! Plus if you had done the research like I have above it appears that Wideroe are clearly a profitable entity so likely the last thing they would sell!
Last edited by Rivet Joint; 13th Nov 2012 at 18:24.
BA Conn lost money while the parent company was at least managing to get by. BA parent had a choice to either close the company down along woth all the liabilities that entailed, or sell it for a nominal amount with a dowry for the buyer as a sweetener.
SAS the parent is in deep trouble and badly needs cash. Wideroe the subsidiary makes money.
Wideroe may well be sold but it will not be given away with a dowry. If Flybe want Wideroes they will have to pay either in cash or in some form of shares. Unless Flybe can find a bank willing to back them in a big way, Flybe will struggle to buy Wideroe in cash.
SAS the parent is in deep trouble and badly needs cash. Wideroe the subsidiary makes money.
Wideroe may well be sold but it will not be given away with a dowry. If Flybe want Wideroes they will have to pay either in cash or in some form of shares. Unless Flybe can find a bank willing to back them in a big way, Flybe will struggle to buy Wideroe in cash.
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This is what the SAS CEO said on a conference call according to ATW Online regarding Wideroes
"Gustafson declined to comment on how or when WF will be sold, saying only that the transaction will give SK more independence from its external creditors. “It is not our first choice or desire to sell Wideroe, but when you have tough choices, you have to take tough decisions. It is a very well run company and I am sure it will generate a lot of interest.”"
"Gustafson declined to comment on how or when WF will be sold, saying only that the transaction will give SK more independence from its external creditors. “It is not our first choice or desire to sell Wideroe, but when you have tough choices, you have to take tough decisions. It is a very well run company and I am sure it will generate a lot of interest.”"
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We have picked up some charter work moving oilies to Shetland in the light of the angry palmtrees being grounded.
Anyone who thinks we will spend half a billion bucks buying a little scandie regional outfit is well and truly in cloud cuckoo land
(Not that it is worth anywhere near that but the scandies as usual over price everything)
Anyone who thinks we will spend half a billion bucks buying a little scandie regional outfit is well and truly in cloud cuckoo land
(Not that it is worth anywhere near that but the scandies as usual over price everything)
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half a billion bucks buying a little scandie regional outfit
Incidentally, your 'little scandie regional outfit' in the form of Flybe Nordic is even smaller so don't berate them too hard!
Widerøe's revenue is nearly £350m annually - nearly half that of the entire Flybe Group. So, given Flybe Nordic's interests I really wouldn't be surprised if they find the cash somewhere.
To add a sense of scale, with the Flybe share price at 55 pence, the market capitalisation of Flybe (ie the value of the company as a whole, including all cash in the bank and any aircraft, spares or land that Flybe may own) is £41m - yes 41 million pounds.
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davidjohnson6 " To add a sense of scale, with the Flybe share price at 55 pence, the market capitalisation of Flybe (ie the value of the company as a whole, including all cash in the bank and any aircraft, spares or land that Flybe may own) is £41m - yes 41 million pounds."
I'm not sure how you arrived at this figure and it may indeed be correct. But did you include in this calculation that only about a third (possibly less if I remember correctly) of the entire company shares were floated/traded in the stock market. If you've not considered that's then your figure will be considerably underestimating Flybe's actual value.
I'm not sure how you arrived at this figure and it may indeed be correct. But did you include in this calculation that only about a third (possibly less if I remember correctly) of the entire company shares were floated/traded in the stock market. If you've not considered that's then your figure will be considerably underestimating Flybe's actual value.