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Flybe-9

Old 20th Nov 2018, 09:53
  #961 (permalink)  
 
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Originally Posted by HZ123
Many have commented on the LGW/LCY slots that maybe worth the cost of the sale price even without the airline.
Whatever about LGW, LCY slots are not particularly valuable these days. BA already has the lion's share of service from LCY and if flyBE stopped LCY ops, its slots would become available for other carriers - and there isn't exactly a long queue at the moment, as LCY has always been a niche.

Originally Posted by HZ123
BA then has access to a top up of Flight/Cabin crew minus the recruitment/basic training etc.
OK, so in your scenario, BA buys flyBE and then tells the flight crew and cabin crew "please relocate to London now and sign this new BA contract"? Do you not perhaps anticipate some trifling issues with changing contract terms? If as anticipated any future for flyBE involves at least a downsizing, what does BA gain in staff terms from buying the company with all its baggage that they don't gain from biding their time and then offering jobs to ex-flyBE staff?

Originally Posted by HZ123
It has been mentioned about BA holding a 15% in FlyBe but I was of the opinion that BA surrendered this years ago
Yes, IAG sold the flyBE shareholding in 2014. See for example this news story from 2014. Let's move on from that old news.

Originally Posted by HZ123
as that share could have cost monies should BE have gone under?
​​​​​​​

Originally Posted by HZ123
Surely the aircrafts can be returned to the lessor?
Lessors are not charities. An airline contracts with a lessor to lease an aircraft for a certain period of time. The lessor takes the risk that the airline may go bankrupt and stop making its lease payments. Otherwise the airline doesn't get a free pass to return the aircraft whenever it wants. Sure, it can try to negotiate an early return with the lessor (n exchange for $$$), but if you're a lessor being offered early return of a pile of 10-year-old Q400s which you were expecting to continue generating cash for you for several years yet, you'll not be particularly accommodating.

I am still waiting for a plausible argument for why someone (anyone) would buy flyBE as is, as opposed to waiting to pick up the pieces, either informally, or by reaching an agreement for "pre-pack administration", essentially saying "you go into Administration and then we'll buy the following bits of you afterwards". The latter lets a buyer cherry-pick what it wants (and lets it avoid taking on liabilities) and is very different to buying the going concern.
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Old 20th Nov 2018, 09:55
  #962 (permalink)  
 
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CEO of easyJet was on BBC Radio 4 this morning as itís financial results day. He was asked about flybe....

https://www.reuters.com/article/us-f...-idUSKCN1NP0MH
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Old 20th Nov 2018, 10:35
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There is a rumour doing the rounds about BA Cityflyer and Flybe close to announcing a full merger. I seriously hope not.
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Old 20th Nov 2018, 10:40
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Doing the rounds where ?

it wouldn’t surprise me in the slightest as iv previously posted.


cs
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Old 20th Nov 2018, 11:07
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Not heard anything regarding this. I think it could work but we'll see.
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Old 20th Nov 2018, 11:11
  #966 (permalink)  
 
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They both have synergies but would Cityflyer want in essence become British Regional Airways? I think they would cherry pick and on another point what would monopolies and merger commission/ aviation regulators have to say on IAG/Easy or Stobart buying BE. Can they scupper any deal or attach conditions?
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Old 20th Nov 2018, 11:19
  #967 (permalink)  
 
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No doubt t if did go ahead things would change over time

however, BA would be getting a maintenance facility for the E jets and the ability to bring that work in house rather than outsource it which would save a small fortune.

Over time iv no doubt that the core BE flying would be kept and the addition of a
BA flight number might even increase numbers flying into MAN/DUB as it would allow easier through selling onto EI and other OW airlines.

Some routes would no doubt vanish. However I think that’s inevitable really as that’s probably the reason BE are as they are


cs

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Old 20th Nov 2018, 11:26
  #968 (permalink)  
 
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Originally Posted by cornishsimon
BA would be getting a maintenance facility for the E jets and the ability to bring that work in house rather than outsource it which would save a small fortune.
In what way would it save a small fortune ? - most airlines are beginning to outsource their maintenance meaning the bean counters have done their sums and concluded that it's cheaper that way. Why bother with all the facilities management overheads, labour cost, training cost etc...
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Old 20th Nov 2018, 11:39
  #969 (permalink)  
 
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I still don't get the obsession why it will/must be an airline that buys out Flybe? As many posters have clearly pointed out, what would be there point? In particularly the ones continually being mentioned;
easyJet, IAG etc. If they wanted to operate such routes and services they already could. Again what would Cityflyer gain from such a move? What Flybe really need is an investor in keeping the operation and brand name going, whilst having the guts to turning it around into a low cost carrier and ridding it of its legacy ways and overheads.
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Old 20th Nov 2018, 13:42
  #970 (permalink)  

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Mike Ashley might be interested........
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Old 20th Nov 2018, 15:38
  #971 (permalink)  
 
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Just curious. But where has this latest rumor regarding CityFlyer and flybe actually come from ? Is it just something picked up from here or is there any substance to it ?


cs
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Old 20th Nov 2018, 15:59
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Originally Posted by cornishsimon
Just curious. But where has this latest rumor regarding CityFlyer and flybe actually come from ? Is it just something picked up from here or is there any substance to it ?


cs
I suspect someone has an over active imagination, but the aviation world is a weird place!
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Old 20th Nov 2018, 16:14
  #973 (permalink)  
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Meanwhile over at a well run airline, the CEO states publicly that Brexit has not made any difference to his business. Profits are up 15.6%. I wonder what COW knows that he doesn't ?

https://www.telegraph.co.uk/business...demise-rivals/
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Old 20th Nov 2018, 16:37
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Meanwhile over at a well run airline, the CEO states publicly that Brexit has not made any difference to his business. Profits are up 15.6%. I wonder what COW knows that he doesn't ?
Meanwhile, over at a well run airline which is far less exposed to the UK market and has decided to re-register half their fleet in Austria...
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Old 20th Nov 2018, 16:50
  #975 (permalink)  
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from The Telegraph article:
Mr Lundgren, who took over as easyJet chief executive a year ago, said Brexit had led to "no drop in demand" in bookings next year.
Heh, Heh. Just wait and see. Close friends of mine have long been planning a big family get together in Italy next year. All on hold due to uncertainty. The closer we get, the more bookings will drop off.
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Old 20th Nov 2018, 17:32
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Why on hold? Do you expect the price to fall?
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Old 20th Nov 2018, 17:52
  #977 (permalink)  
 
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The world is going to end in March, keep up DC3 Dave. No travel, no food , pestilence and famine, doomed I tell ya, doomed.
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Old 20th Nov 2018, 20:51
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BA would be going backwards if they bought flybe. Remember much of todayís flybe is the remains of the loss making BA CONNECT operation which was the succesor BA CitiExpress which followed the mess that was British Regional Airlines and the merger with Brymon which fused loss making BA mainline regional with their former franchise partners. None of this made money, ever in the case of mainline or since the 90s in the case of BRT and BRY.

The raison díetre for BA Cityflyer is to connect high yield LONDON City to Europe, BA cannot make money outside of the London market, never could. Hence there is no sane reason for IAG to buy back their former loss making regional routes which remain loss making and donít feed mainline.

Last edited by Skipness One Foxtrot; 20th Nov 2018 at 23:29.
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Old 20th Nov 2018, 20:58
  #979 (permalink)  
 
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Originally Posted by tophat27dt
I suspect someone has an over active imagination, but the aviation world is a weird place!
It's called a ''wet dream'' remember them :-)

Over enthusiastic young aviation nutters have them on a nightly basis!
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Old 20th Nov 2018, 21:04
  #980 (permalink)  
 
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Thereís nowhere near enough, if any, ROI for a major corporate with significant organic growth plans. Just canít see how this could be presented and justified to investors.

More chance on Dragonís Den.
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