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Flybe-9

Old 3rd Feb 2020, 14:15
  #3101 (permalink)  
 
Join Date: Feb 2018
Location: Wales
Posts: 1,308
[QUOTE=Brigantee;10678388]
Originally Posted by Set 1013 View Post
Hey dude,

I never stated it was a £100m loan. I hear it was a loan for the next 3 years. I agree though, it would have to be more like £500m to do that. Hell of a loan to repay though.

This is just what I have been told. As an ex employee myself (very fond of the old place too) I genuinely hope its true and it works out for








Ive heard a figure of 500 million being what the offer will be to get us sorted ....MOL the rest can do what they want it wonít effect things .
From the government??
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Old 3rd Feb 2020, 14:20
  #3102 (permalink)  
 
Join Date: Mar 2012
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[QUOTE=Brigantee;10678388]
Originally Posted by Set 1013 View Post
Hey dude,

I never stated it was a £100m loan. I hear it was a loan for the next 3 years. I agree though, it would have to be more like £500m to do that. Hell of a loan to repay though.

This is just what I have been told. As an ex employee myself (very fond of the old place too) I genuinely hope its true and it works out for

Ive heard a figure of 500 million being what the offer will be to get us sorted ....MOL the rest can do what they want it wonít effect things .

I don't think for a second it will make a difference if MOL or any other CEO jumps onto their high horse.

If the government have made this decision then that is the decision. We are now out of the EU and hopefully Boris is putting this country and its infrastructure first. Therefore I can see him making this investment into flybe now he can flex his mussels a bit.

With regards to my original post and other PPRuNe police. As stated many times before, this is a rumour network. I have heard that this deal is done deal which has been communicated to crews. As I no longer work for BE I was hoping someone would confirm this good news. That's all.
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Old 3rd Feb 2020, 14:34
  #3103 (permalink)  
 
Join Date: Aug 2014
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[QUOTE=PDXCWL45;10678404]
Originally Posted by Brigantee View Post
From the government??

Yes shareholders are not playing ball so boris is going to sort it is the word ....
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Old 3rd Feb 2020, 14:48
  #3104 (permalink)  
 
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[QUOTE=Brigantee;10678418]
Originally Posted by PDXCWL45 View Post


Yes shareholders are not playing ball so boris is going to sort it is the word ....
In which case they should never have bought Connect in the first place if they had deep pockets and knew they were not going to invest appropriately!
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Old 3rd Feb 2020, 15:01
  #3105 (permalink)  
 
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[QUOTE=Brigantee;10678418]
Originally Posted by PDXCWL45 View Post


Yes shareholders are not playing ball so boris is going to sort it is the word ....
Oh wow! I can't wait to see the reaction of MOL and co to that! Lol
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Old 3rd Feb 2020, 15:14
  #3106 (permalink)  
 
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[The rumoured] £500m is a hell of a loan for a regional airline to pay off. When you look at some of the last available public accounts revenue was £752.6 million. The debt-to-income ratio on that would be absolutely mental!

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Old 3rd Feb 2020, 15:17
  #3107 (permalink)  
 
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If the government have made this decision then that is the decision. We are now out of the EU and hopefully Boris is putting this country and its infrastructure first. Therefore I can see him making this investment into flybe now he can flex his mussels a bit.
EU State Aid rules should still apply during the Implementation period.
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Old 3rd Feb 2020, 15:17
  #3108 (permalink)  
 
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Originally Posted by Jenny Tails View Post
£500m is a hell of a loan for a regional airline to pay off. When you look at some of the last available public accounts revenue was £752.6 million. The debt-to-income ratio on that would be absolutely mental!
Probably have a lifespan of 25 years I'd have thought.
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Old 3rd Feb 2020, 15:20
  #3109 (permalink)  
 
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Originally Posted by Jenny Tails View Post
[The rumoured] £500m is a hell of a loan for a regional airline to pay off. When you look at some of the last available public accounts revenue was £752.6 million. The debt-to-income ratio on that would be absolutely mental!



Word is itís repayment schedule is very flexible .......if we canít pay anything back for a few years itís not a big deal
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Old 3rd Feb 2020, 15:21
  #3110 (permalink)  
 
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Originally Posted by Jenny Tails View Post
[The rumoured] £500m is a hell of a loan for a regional airline to pay off. When you look at some of the last available public accounts revenue was £752.6 million. The debt-to-income ratio on that would be absolutely mental!



Word is itís repayment schedule is very flexible .......if we canít pay anything back for a few years itís not a big deal , Main thing is get the company on a sound footing .
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Old 3rd Feb 2020, 15:22
  #3111 (permalink)  
 
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Originally Posted by SWBKCB View Post
EU State Aid rules should still apply during the Implementation period.
Have you heard Boris Johnson's speech this morning?
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Old 3rd Feb 2020, 15:29
  #3112 (permalink)  
 
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No - but most EU law has now been adapted into UK law. Can't say for certain about State Aid, but I'd be surprised if it hasn't.

It will stay as UK law until Parliament changes it, and that won't be during the Implementaion period i.e. until the end of December.
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Old 3rd Feb 2020, 15:36
  #3113 (permalink)  
 
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I really hope you are correct. I really do. But it just seems like massive sums being borrowed. I'd still like to have a job so I'll keep my fingers crossed.

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Old 3rd Feb 2020, 15:39
  #3114 (permalink)  
 
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I find it almost inconceivable that HMG would stump up £500 million and if it did it would surely mean Flybe moving into State ownership. If the owners won’t stump up the money they clearly don’t believe it’s worth saving and I would suggest that the logical move would be to put the company into administration out of which a newco could be reborn with lower costs (leases, overheads etc) and the ability to concentrate only on that part of the network worth having. I finally concluded that Flybe management has lost the plot when I read about the launch of LCYLUX. What possible sense does this make? It doesn’t add connectivity to Virgin, Air France etc. It doesn’t fit with the narrative of Flybe providing vital UK infrastructure (and thus encourage HMG to get involved). It does demonstrate that Flybe management clearly haven’t a clue.
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Old 3rd Feb 2020, 15:41
  #3115 (permalink)  
 
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500million not that much in the greater scheme of things....Money well ,spent if it keeps the country moving and thousands in jobs
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Old 3rd Feb 2020, 15:51
  #3116 (permalink)  
 
Join Date: Mar 2006
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Completely agree Willy Wombat! If the investors not wanting to invest money in the company only confirms that they don’t think it is worth investing in. A £500m pound loan from the government would line the investors nicely as there is no hope in hell for the government to recover the money once the inevitable happens.
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Old 3rd Feb 2020, 15:56
  #3117 (permalink)  
 
Join Date: May 2019
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I agree willy wombat. Would be a completely disgraceful use of public money while investors sit back and keep their hands in their pockets.
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Old 3rd Feb 2020, 15:58
  #3118 (permalink)  
 
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It's not that simple. Certain UK airports would no longer be commercially viable without flybe, and it's not as if someone else will move in to fill the gap. Loganair have enough on their plate and Eastern are in a downward spiral.
Belfast City, Exeter and Southampton would be at risk overnight if flybe closed. Glasgow is already going backwards in relative terms and Newquay would lose vital connections overnight. The fallout to UK PLC would be more than Thomas Cook going under IMHO.
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Old 3rd Feb 2020, 15:59
  #3119 (permalink)  
 
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Originally Posted by Skipness One Foxtrot View Post
It's not that simple. Certain UK airports would no longer be commercially viable without flybe, and it's not as if someone else will move in to fill the gap. Loganair have enough on their plate and Eastern are in a downward spiral.
Belfast City, Exeter and Southampton would be at risk overnight if flybe closed. Glasgow is already going backwards in relative terms and Newquay would lose vital connections overnight. The fallout to UK PLC would be more than Thomas Cook going under IMHO.
if they're that important, someone else ill fill the gap
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Old 3rd Feb 2020, 16:16
  #3120 (permalink)  
 
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I guess the question is whether the majority go flyBeís network is viable, or if flyBe has such fundamental structural issues that it cannot be saved. flyBe has required £200 million from Connect and somewhere between 100 and 500 million from the government. If the network is not fundamentally viable then this is good money after bad, the Government needs to be honest with their intentions and nationalise it, or offer PSO funding on competitive tender terms. Simply propping up a chronically loss making airline is madness.

500 million is between 0.5 and 1% of the HS2 budget, for example, yet there will be zero return. How long until flyBe requires yet-more cash? If the UK feels the need for a chronically loss making national airline to connect the domestic market by air, thatís fine. But do the proper thing and call it that, take over the operating assets as the ďoperator of last resortĒ
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