Virgin Atlantic and Stobart Group acquire Flybe
Virgin Atlantic and Stobart Group have partnered to join a consortium, dubbed Connect Airways, to acquire the Exeter-based airline, Flybe.
Connect Airways also includes Cyrus Capital Partners, the venture capital company based in New York and London.
Virgin Atlantic and Stobart Group will each own a 30% stake in firm, whilst Cyrus have 40% shares in Flybe,the Independent revealed.
The consortium will acquire the carrier for a total of £2.2mn (US$2.81mn), and has plans to invest £100mn ($127.7mn) into the firm.
Flybe announced in October last year its issues with poor demand and the rise in fuel costs, the BBC reported.
The airline will now operate as a Virgin Atlantic brand, with Connect Airways initially to lend the carrier £20mn ($25.54mn).
Flybe’s shareholders will receive £0.01 ($0.013) per share, with the company’s shares closing on Thursday at £0.1638 ($0.21).
“The industry is suffering from higher fuel costs, currency fluctuations and significant uncertainties presented by Brexit,” stated Christine Ourmières-Widener, CEO of Flybe, according to the BBC.
“We have been affected by all of these factors which have put pressure on short-term financial performance.”
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