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FLYB - Flybe News Story

0.964p 0.0  0.0%

Last Trade - 08/03/19

Sector
Financials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £743.3m
Position in Universe th / 1821

UPDATE 1-Virgin-Flybe UK airline deal gets EU clearing, to cede slots

Fri 5th July, 2019 4:33pm
(adds Connect Airways, background)
    BRUSSELS, July 5 (Reuters) - European Union antitrust
regulators cleared on Friday the $2.8 million acquisition of
British airline Flybe  FLYB.L  by Connect Airways, a consortium
created by Virgin Atlantic, Stobart Group  STOB.L  and
investment adviser Cyrus Capital.
    The final approval of the merger, whose details were made
public in January, is conditional on the release by Connect
Airways of slots for the routes connecting the English city of
Birmingham to Amsterdam and Paris, the EU executive said in a
statement.  urn:newsml:reuters.com:*:nL3N1ZB2DO
    "Today is an important day as Connect Airways takes full
control of Flybe," said Lucien Farrell, chairman of Connect
Airways. The merged company will now focus on expanding its
regional network and franchise business in Britain and Ireland,
it said in a statement.
    Under the deal, the consortium will provide a 20 million
pound ($25 million) bridging loan facility to support Flybe's
working capital requirements and up to 80 million pounds of
funding would be made available once the deal is completed.
    Brussels was concerned that after the merger those routes
could have fallen under a near monopoly in favour of the
Franco-Dutch giant Air France-KLM  AIRF.PA , which has acquired
Virgin Atlantic together with Delta and the Virgin Group of
Richard Branson.
    To allay the EU Commission's concerns, Connect Airways
committed to the release of five daily slot pairs at Amsterdam
Schiphol airport and three daily slot pairs at Paris Charles de
Gaulle airport. 
    "The commitments fully address the competition concerns
identified by the Commission," the EU executive said.
    Flybe, Britain's biggest domestic airline, operates routes
from about 25 British airports, including domestic connections
to London's Heathrow.
    Connect Airways is 40% owned by Cyrus' unit DLP Holdings.
Stobart Group's aviation unit and Virgin Atlantic own 30% of the
consortium each.
    
($1 = 0.8004 pounds)

 (Reporting by Francesco Guarascio @fraguarascio, editing by
Robin Emmott and Louise Heavens)
 ((Francesco.Guarascio@thomsonreuters.com; @fraguarascio; +32 2
287 68 17;))
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