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Stobart Air-2

Old 25th Feb 2018, 07:04
  #121 (permalink)  
 
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Originally Posted by brian_dromey
The suggestion on the thread was that BE could be rebranded as Stobart or Eddie Stobart.What, if anything, should they be replaced with? E-2s? C-Series? Does flying subsidised jets from DSA and CWL even make sense, long term?
I'd be shocked if they got rid of the Flybe brand it's just to well known.
As for CWL and DSA surely subsidised flying is a better way to guarentee the jets made money why else are they moving E175s to these bases? The E175 and E190 e2 would be a good replacement and Stobart already have the E jet in their fleet.
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Old 25th Feb 2018, 09:14
  #122 (permalink)  
 
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Who is to say that they are going to purchase Flybe out right?
What if Stobart and Flybe set up an overall holding company and then Flybe and Stobart Air operate as two separate companies under the holding company.
That way the identities stay but the fleets and back offices can be streamlined and harmonised.
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Old 25th Feb 2018, 09:59
  #123 (permalink)  
 
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I'd be inclined to wait until Stobart give a formal statement of their intentions to all investors (not a 'we are exploring options' bit of waffle) that meets Takeover Panel requirements before trying to think what they will do afterwards
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Old 25th Feb 2018, 10:20
  #124 (permalink)  
 
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And for the rest of us, it's still a rumour network...
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Old 25th Feb 2018, 10:24
  #125 (permalink)  
 
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The whole world is a rumour network, I'd rather go down the pub and jest with my buddies than waste my life gossiping about Airfix kits!
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Old 25th Feb 2018, 11:21
  #126 (permalink)  
 
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Airfix kits! Wow. DC3s or ATR72s?
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Old 25th Feb 2018, 11:30
  #127 (permalink)  
 
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Old 25th Feb 2018, 16:19
  #128 (permalink)  
 
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That's not an Airfix kit.

And what's wrong with gossiping about them?
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Old 26th Feb 2018, 08:18
  #129 (permalink)  
 
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The actual wording from the Stobart Group is...“taking a non-controlling interest in a vehicle to acquire 100% of Flybe”

So, a consortium in which Stobart would have a non-controlling interest, is considering acquiring 100% of Flybe. Therefore the consortium would very much have control.

Who/what would make up the rest of the consortium?
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Old 26th Feb 2018, 08:35
  #130 (permalink)  
 
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private equity ?
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Old 26th Feb 2018, 09:14
  #131 (permalink)  
 
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There have been a number of comments on this and the Flybe thread about replacing Q400s with ATRs but, except on very short sectors, you cannot just drop an ATR into a Q400 schedule as the ATR is significantly slower.
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Old 26th Feb 2018, 14:33
  #132 (permalink)  
 
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I don’t know where to post, SEN, FlyBe or Stobart Air!

As much as they’d love to buy Flybe outright they haven’t made an offer because they cannot afford to. They would need to raise cash and suspend or reduce the divided, thus relegating shares into a risk category that would force a few institutional investors to sell.

They’re looking for joint venture partners to bring the cash. Perhaps a Chinese company like HNA Group would love such a business? Or perhaps Easyjet, they’ve been looking longingly at the thinner, shorter routes for years, but their A319 are too big. (A long shot because they wouldn’t need anything Stobart could bring to the table). I guess one thing can be assumed, it won't be AF/KLM, IAG, Lufthansa Group or the unmentionable.

They would be a junior partner in such an arrangement so there’s no need to get carried away with sending MX to CAX and pulling out of LCY. It won’t happen.

An airport, an airline and an aircraft leasing company could all tie together into a wonderful package.
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Old 26th Feb 2018, 14:51
  #133 (permalink)  
 
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Makes you wonder why nobody else has done it?

I can envisage a maintenance facility at CAX!
And before it becomes established as an urban myth, I's sure H W was joking. Surprised the News and Star hasn't picked it up.
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Old 26th Feb 2018, 15:51
  #134 (permalink)  
 
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As much as they’d love to buy Flybe outright they haven’t made an offer because they cannot afford to
...but as a quoted company they could make an all-share offer.
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Old 26th Feb 2018, 16:01
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Thats true LGS although that also has significant impact on existing shareholders. When saying they can't afford to buy FlyBe, I wasn't thinking exclusively about the purchase price, I was thinking about the massive cashflow impact owning an airline would have.

Makes you wonder why nobody else has done it?
Massive risk exposure?
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Old 26th Feb 2018, 18:03
  #136 (permalink)  
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flight_mode

Not sure why you said Stobart couldn't afford Flybe, they have plenty of money in the bank especially after the recent sale of property owned by them and the £100+m They received from the partial sale of the Eddie Stobart business.
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Old 26th Feb 2018, 20:25
  #137 (permalink)  
 
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HAN will certai my not be investing if anything they are selling assets
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Old 26th Feb 2018, 22:09
  #138 (permalink)  
 
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I can see debt for equity swap coming onto the table. Flybe got expensive US$ held debt. Off load it to equity player(s) then use the SPV to reissue the debt in £, the SPV underwrites the risk, legally separate entity to STOB and others who will have controlling rights.

Interesting times. If the consortium craft a business restructuring plan that will yield returns then attracting insituational and PE will happen. Markets got excess capital availability right now.
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Old 26th Feb 2018, 23:11
  #139 (permalink)  
 
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Originally Posted by kasuga
HAN will certai my not be investing if anything they are selling assets
It's the HNA Group your referring to.
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Old 27th Feb 2018, 01:05
  #140 (permalink)  
 
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Mik3bravo u seem to be clued up on this - can I ask why would stobart want to announce intent to markets before actually following through? It has sent the share price up which surely means they will have to pay more than they would have done if they’d kept quiet?

Doesn’t Brexit mean Stobart Air need a UK AOC which, please correct me if I’m wrong, they dont currently have
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