Flybe-9
Join Date: Mar 2012
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FT now reporting that HMG have back tracked on the loan as flybe have been unable to meet a set criteria.
Flybe management are now hoping and relying on APD being restructured to save the organisation.
Sorry can't download the link.
Flybe management are now hoping and relying on APD being restructured to save the organisation.
Sorry can't download the link.
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Further from the FT. Apparently the Government is unlikely to approve the loan partly because Flybe has already taken out loans against all of its assets.
"The situation was complicated after Flybe mortgaged the majority of its remaining assets — including buildings, equipment and intellectual property — to its owners last year. This made it more difficult for the UK government to provide a loan on commercial terms." https://www.ft.com/content/6c37bb36-...b-339c2307bcd4
"The situation was complicated after Flybe mortgaged the majority of its remaining assets — including buildings, equipment and intellectual property — to its owners last year. This made it more difficult for the UK government to provide a loan on commercial terms." https://www.ft.com/content/6c37bb36-...b-339c2307bcd4
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I wouldn't bank on it. Air Italy had wealthy owners, as did Air Berlin. Sometimes you have to realise that throwing good money after bad isn't going to change things. How long has Flybe been in trouble? Years and still nothing changes. Even after last year's scare they still kept running most of the routes and continuing as before.
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As much as I think that connectivity is (very) important to the regions, I can't see how state intervention is appropriate in this instance. Going forward the business will have to resize and focus- so it's not going to be offering what it is today. Should routes operating in to and out of LHR & LCY be subsidised where there is competition? Those must be some of the most profitable routes. Services deemed "essential" may well be served more efficiently using different operators, so why should Flybe get the subsidy?
Connect Airways dabble with Flybe was just an easy opportunity for some rich men and woman to become even richer. The shareholders in Connect Airways Limited seemed to have loaned money to the company (with interest), while covering themselves with charges over the Assets.
And my guess would be that Stobart Air will be unaffected by any demise of Flybe as was previously suggested, in a similar way that Condor still operates.
Connect Airways dabble with Flybe was just an easy opportunity for some rich men and woman to become even richer. The shareholders in Connect Airways Limited seemed to have loaned money to the company (with interest), while covering themselves with charges over the Assets.
And my guess would be that Stobart Air will be unaffected by any demise of Flybe as was previously suggested, in a similar way that Condor still operates.
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And if Flybe's owners have the money to put in then they absolutely should rather than the already hard-pressed taxpayers.
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As much as I think that connectivity is (very) important to the regions, I can't see how state intervention is appropriate in this instance. Going forward the business will have to resize and focus- so it's not going to be offering what it is today. Should routes operating in to and out of LHR & LCY be subsidised where there is competition? Those must be some of the most profitable routes. Services deemed "essential" may well be served more efficiently using different operators, so why should Flybe get the subsidy?
Connect Airways dabble with Flybe was just an easy opportunity for some rich men and woman to become even richer. The shareholders in Connect Airways Limited seemed to have loaned money to the company (with interest), while covering themselves with charges over the Assets.
And my guess would be that Stobart Air will be unaffected by any demise of Flybe as was previously suggested, in a similar way that Condor still operates.
Connect Airways dabble with Flybe was just an easy opportunity for some rich men and woman to become even richer. The shareholders in Connect Airways Limited seemed to have loaned money to the company (with interest), while covering themselves with charges over the Assets.
And my guess would be that Stobart Air will be unaffected by any demise of Flybe as was previously suggested, in a similar way that Condor still operates.
On the second, Willie Walsh said that Aer Lingus made sure the Stobart Air side of the deal had adequate ring fencing so that should anything happen Aer Lingus Regional could keep flying.
Join Date: Jul 2006
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Fernlee, why has these wealthy owners not put in the cash needed? Why, if the company is in such dire straights, are they doing nothing re cash themselves?They have had plenty of time.
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Even if the company is bailed out, it's by no means safe. Consumer confidence has been destroyed. They have let the headlines be about Flybe being on the verge of bankruptcy for pretty much the past 18 months. We also don't know the full extent to which COVID19 will affect bookings and travel going forward - maybe a short bump is ok but if it turns out to be more prolonged, we'll be back here again in weeks or months. Flybe needs a complete overhaul. That unfortunately means cutting jobs and scrapping routes which don't make money.
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I'm not out for Flybe btw. I think they are yet another British company shafted by atrocious management over the long term.