FLYBE – Rescued by Virgin and Stobart

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Flybe is being bought for £2.2m by a consortium including Virgin Atlantic and Stobart Group.

The sale comes after the Exeter-based airline’s warning in October that it would lose £22m because of poor demand, a weaker pound and higher fuel costs.

Shareholders in Flybe will receive 1p a share, while the consortium, which also includes venture capital firm Cyrus, will inject £100m.

It will operate under the Virgin Atlantic brand. Flybe shares closed on Thursday at 16.38p.

The shares had been trading at more than 30p before the profits warning, which sparked a downward spiral in the price.

The consortium, known as Connect Airways, will initially lend £20m to Flybe to support the ongoing operations of the airline.

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