I have had Stobart on my watch list looks a well run company, however I don't get the decision to buy Flybe which looks a basket case, massive debts and loss making plus sub one current ratio.
I know Dart have made a success of using planes for transporting goods but this does look a terrible move to make or am I missing something ?
are they going to convert the planes and use them to ship goods or carry on running it as a passenger airline?
Stobart own and operate Southend Airport, own a regional airline on franchise from Aer Lingus, operate several Flybe routes under franchise and have an aviation leasing company so buying Flvbe is a logical move in particular as they plan to open up more routes from Southend.
I bought Stobart at 100p about three years ago and currently, at cost, are getting an 18% dividend. I figured they might buy Flybe but stupidly didn't buy any Flybe shares.
Thanks for the replies people as I say Dart seem to have made a good fist of the airline business and Stobart ticks all my boxes for an under the radar well run company but think it will take a big effort to turn round Flybe also wonder if an equity raising will be needed to fund part of the deal.
I doubt if there would be a public offering as Flybe is only about 12% the cap of Stobart which has no net debt. They could easily take out finance or do a limited placing. Woodford may take more as it's one of the few investments he has made a profit on in the last couple of years!
