1) LHR base fares are relatively higher than LGW
2) LHR last minute fares are also higher than LGW
3) LGW remains connected to EDI/GLA as part of the BA network
4) Cost base is now relative similar
Given LGW as a stand alone operation has been forced to make each route stand on it's own merits, I would conclude that BA's remaining LGW domestics are likely profitable as BA and EZY are still competing and BA has no strategic benefit in running at a loss. Also given the revenue on the LGW routes is apparently less, LHR-GLA/EDI should be in profit so long as revene allocation to short haul on long haul connections is well managed, it was this that finally killed BFS-LHR.

And if you're British Airways and you can't make money on GLA/EDI to LHR, the core domestic in your own freaking home market,you really should just give up and go home now.

flybe are not helped in that EDI consider them a second tier carrier and so bussing is now the norm at both ends on LHR-EDI, whereas BA are more likely to get an airbridge, though my last B767 up ended up parking on 212 at Cargo.....

And if that happened it would be bye bye Flybe from Exeter airport and Cardiff Airport as Easyjet is only interested in operating from Bristol in the South West of England and Wales.

I may be missing something, but why on earth would easyJet want to complicate its very simple fleet by adding Q400s, E175s and E195s and a load of poor contracts to lease or finance these aircraft? The risks would surely outweigh the benefits of sitting on the sidelines, letting it go bust and then stepping in to the markets in which you saw value. The absence of any clear bidder already suggests that many others are taking the same approach.

Any approach by EZY would focus on cherry picking selected routes that would sustain an up-gauging to an Airbus.

That's exactly my point. If you buy Flybe, you inherit the rest of the organisation that goes with it, which you're agreeing would play no part in easyJet going forward.. Why would you do that?

Flybe still have assets. easyJet Connect anyone?
And if Flybe fell into the hands of IAG, Ryanair (remember buzz?) etc. All pie in the sky. LOVE speculating.

Exactly. What on earth would easyJet see in Flybe??? The media has no clue on this one i'm afraid. Stobart is the more likely candidate - however it depends who else out there is interested because Stobart do not have a limitless cash supply. Strangely, they have informed the media that they cannot comment when questioned on whether they are bidding. This is very different to their previous very open announcement about interest. I doubt they are as keen this time around despite the bargain basement price.

Interesting to see who finally does catch this falling knife.

I think it would be down to BA. Many have commented on the LGW/LCY slots that maybe worth the cost of the sale price even without the airline. BA then has access to a top up of Flight/Cabin crew minus the recruitment/basic training etc. I cannot see them retaining to much of the network however as many of the same routes were served in the past by BA and deemed unprofitable. The engineering business however good is limited by the size of the aircraft that the hangars can accommodate but maybe a going concern in their own right.

It has been mentioned about BA holding a 15% in FlyBe but I was of the opinion that BA surrendered this years ago, as that share could have cost monies should BE have gone under? Surely the aircrafts can be returned to the lessor? As some threaders have said lets us hope they survive for the many people who gain income from the operation particularly in and around Exeter.

Which makes you laugh harder ?

BA buying it ?
EZY buying it ?

You can be damm sure if EZY didn't want Monarch they sure as hell ain't interested in Flybe .

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.

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:cool:? 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?

Yes, IAG sold the flyBE shareholding in 2014. See for example this news story from 2014. Let's move on from that old news.

:confused: :confused: ​​​​​​​:confused:

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.

There is a rumour doing the rounds about BA Cityflyer and Flybe close to announcing a full merger. I seriously hope not.

Not heard anything regarding this. I think it could work but we'll see.

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?

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...

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.

Mike Ashley might be interested........

I suspect someone has an over active imagination, but the aviation world is a weird place!

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/

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...

from The Telegraph article: 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.

Why on hold? Do you expect the price to fall?

The world is going to end in March, keep up DC3 Dave. No travel, no food , pestilence and famine, doomed I tell ya, doomed.

Response from BE on their Facebook page when asked by a punter if forward bookings would be honoured!

"Please be assured that all flights will be operating as usual. Things at Flybe are going well. The strategy we have for growth is already delivering. Our costs are reducing and our unit revenue is up. We see this as positive news, but we want to consider all possible options"

I suppose they can't say anything else, but I really do wonder if they genuinely believe their strategy is working. It clearly isn't. And selling a bucketload of tickets in advance at well below-average yields for this winter may have helped cash but it will not help the losses in any way.

Dark clouds ahead for Flybe
 

The UK government doesn't give a crap about Flybe. If any government was to step in it would be the Welsh government.