Flybe-9

[CEJM]

Originally Posted by Skipness One Foxtrot

Seems a deal has been reached with HMG to keep them trading.

https://news.sky.com/story/cabinet-t...ckage-11908144

Whilst the article has been updated at 18:00 today, it does not mention that talks have been successful.

[Set 1013]

Originally Posted by Brigantee

What people tend to forget is flybe are in this postion because of unfair completion from the likes of easy jet and Ryanair , this needs addressing .

Brigantee, what planet do you live on? How on earth is the competition unfair??

Flybe has failed for one reason and one reason alone, a decade of poor management and lack of cost control!!

[Gurnard]

Sky News states:- A government spokesperson said: "We do not comment on speculation or the financial affairs of private companies."
Lame statement because it seems the Government is now getting involved in private companies.

[tartan 201]

Originally Posted by Skipness One Foxtrot

Seems a deal has been reached with HMG to keep them trading.

https://news.sky.com/story/cabinet-t...ckage-11908144

Wrong link in the above post, but here's the tweet from Andrea Leadsom confirming the rescue:

Twitter

[V12]

Originally Posted by Set 1013

Brigantee, what planet do you live on? How on earth is the competition unfair??

Flybe has failed for one reason and one reason alone, a decade of poor management and lack of cost control!!

Hmm...that looks like 2 reasons at least to me

[LTNman]

Maybe they should now support the steel industry, Mothercare and Debenhams?

[Set 1013]

Originally Posted by V12

Hmm...that looks like 2 reasons at least to me

But still correct! 😉

[kcockayne]

Delighted that BEE has been saved - until the next time. Unless whatever the airline has been doing wrong is now put right, it won't be going anywhere. I will be interested to see exactly what this rescue involves. Anyway, congratulations to the BEE employees on saving their jobs.

[Blackfriar]

Wrong business model from the 20th Century. Nowadays if you can’t fill a 737/320 then you don’t fly it. That is where the long-run lowest cost production curve ends (until a replacement comes along). If easyJet can fill two 320s a day BRS-BFS, then no point flying SOU- anywhere with anything with higher seat mile costs. Flybe won’t be profitable until it ditches all the Dash8s etc. It will just stagger along at best.

[Alteagod]

Well done....again BE survived. The deal has probably got more strings attached than a string vest factory. HM government will not have written a blank cheque.

[fjencl]

and i don't think they will have waived the fact that HMRC are still owed 106 million for APD from the last 12 months.

[crewmeal]

HM government will not have written a blank cheque.

The govt haven't written a blank cheque the shareholders have agreed to pump more cash into it.

My guess there will be a cull of non profitable routes regardless of base. Also a lack customer confidence won't help the current situation. I hope whoever is in charge of the operation manages to make something of it and turn it into a profitable business.

[01475]

Well I never.

I wonder whats in it for other regional airlines. Whatever it is, I fear it might just create competition for FlyBe that it's not in a position to cope with.

​​​

[cabsav]

This is nothing more than a stay of execution.
where will they find the money to eventually pay the Tax. How long will circa £30m last. It’s made huge losses for years. It’ll be turned round in months! Don’t think so. Stover and cyrus reluctant to put that money in. Not exactly an endorsement of hope.

[LBIA]

HM Treasury
https://hmtreasury-newsroom.prgloo.c...l-connectivity

[SWBKCB]

So does anybody know what the deal is?

BBC- Flybe reaches rescue deal with shareholders

interesting quote in amongst the rest of the fluff

The Treasury also said it would work with Flybe to figure out a repayment plan for the significant air passenger duty debt.

[fjencl]

The news said that the shareholders have decided to put in more money due to the government saying it will review APD amounts. Also something to do with the airline getting a 2 year period or something to repay the 106 million owed of APD for last 12 months. Or something along these lines.

[LTNman]

Originally Posted by crewmeal

My guess there will be a cull of non profitable routes regardless of base. Also a lack customer confidence won't help the current situation. .

This hits the nail on the head. The airline has been temporarily saved due to its U.K. network being viewed as providing connectivity between regions yet many of those routes will be chopped which then begs the question why would the government save the airline only for those routes to end anyway.

Also why was those routes not chopped over the last 12 months?

[CEJM]

In the article below the Connect Airways CEO is talking about the possibility of stopping flights if the route can easily made by train or road. Unfortunately the definition of ‘easy’ is not given.

https://www.businesstraveller.com/bu...mestic-routes/

[True Blue]

So has the government asked the top management why these millions of APD had not been paid over as required? Makes you think this non-payment of APD has been going on for a while.