Flybe Share Discussion Threads

[tonysss13] 11/1/2019 20:39

there's one of the buyers

The former chief executive of Stobart Group, the infrastructure conglomerate, has stoked his bitter war with the company by staging an audacious market raid on shares in Flybe, the regional airline.

Sky News has learnt that Andrew Tinkler, who is embroiled in a protracted legal row with his former employer, snapped up a stake of approximately 10% in Flybe Group during Friday's trading session.

hxxps://news.sky.com/story/tinkler-stokes-stobart-war-with-raid-on-flybe-shares-11605107

[phillis] 11/1/2019 20:32

Mhin
You sound like a typical Whinger who has lost more than he can afford

[mhin2] 11/1/2019 20:24

`Geez a job- I could have taken the share price to 1p...go on, go on...geez a job..'

[loganair] 11/1/2019 19:57

The loss-making regional airline is to be bailed out by a consortium of three parties, each with their own aims. Virgin Atlantic has a 30 per cent stake in the venture, and wants to feed into the Heathrow and Manchester hubs for its long-haul operations, as well as rebranding the airline; Virgin Atlantic is much more memorable than Flybe. Sir Richard Branson’s airline will more than double Its fleet, with 78 Flybe aircraft to be repainted.

Stobart Group – whose Irish-based airline, Stobart Air, already operates some of its flights under the Flybe brand – wants to boost flying from the two airports it owns.

And a hedge fund, Cyrus Capital Partners, has the remaining 40 per cent share, which it will presumably sell if and when the value of the airline increases.

The parlous state of Flybe is revealed in the purchase price of just £2.2m.

What will it mean for staff?

No-one knows. Pilots say they weren’t consulted. The HQ staff in Exeter will be worried Virgin Atlantic may cut head count at the Devon airport and move some jobs to its base in Crawley, just south of Gatwick.

And passengers?

At present, all operations continue as normal.

While Virgin Atlantic (short-haul) is promising enhanced customer service, there are no promises on routes. The buyers will be looking closely at every link, assessing whether planes, pilots and cabin crew could be more profitably deployed elsewhere.

Changes could take effect as soon as the end of March, when the summer schedules begin.

Looking at the route networks, links from Edinburgh, Glasgow and Aberdeen to the southern half of England and to Belfast City in Northern Ireland look secure, and likewise Exeter and Southampton to the north and west will probably survive. But East Midlands aircraft could be re-directed to Manchester to boost frequency there.

Internationally, feeds to Amsterdam and Paris are likely to increase ahead of the Air France-KLM buy-in to Virgin Atlantic, which will see them taking 30 per cent of the airline.

Southend is likely to benefit from new aircraft and an extended European and domestic network. But some of Flybe’s non-core routes – such as Cardiff to Milan, Doncaster to Alicante and Leeds Bradford to Dusseldorf – may not survive a cull if the new owners continue the current “shrink-to-success” strategy.

What about a new fleet?

It is most unlikely anything will change in the near future, beyond Flybe continuing to return Embraer jets and standardise around the Bombardier Q400 aircraft.

In time, it will depend on what path Virgin Atlantic takes with the new airline – it is possible Airbus or Boeing jets could be deployed on some routes.

[bray2] 11/1/2019 19:45

Lots of additional Information on the Flybe investor relations take a look people and let's get a sensible discussion going on do investors have a chance of some Legal challenge against the directors of Flybe.

[barvin] 11/1/2019 19:23

Can't remember or find where I read it, may have been a US article. But it collated all the investment and profit/losses in airlines since they started and the final conclusion was that a profit had never been made in the airline industry when all put together. Tried looking for it can't find it, but it sticks in your mind when you see this sort of thing. Good acquisition for Branson though, but surprised they have even bothered at that price and didn't lump for it in a prepack.

[barvin] 11/1/2019 19:17

What on earth has happened here? Stobart offered around 35p-40p bid last year and now 1p. Don't think I have ever seen anything like this before. What happened to the £80m in cash they were holding?

[qantas] 11/1/2019 19:12

diku we do love you.

[diku] 11/1/2019 19:06

They will start with a very low ball price to test the waters...Branson & Co will buy it...keep it for few years...and it will come back on the market again...Branson & Co will cash in...wash rinse and spin...

[mhin2] 11/1/2019 18:54

super city... surely it depends on how much value the consortium gives to the operation...I dont think their first offer will be the last if the deal is rejected...on the other hand if another party was involved we might start to see the notion of `value', but IAG seem as if they are out of the equation, although why they would concede a feeder network to their competitors is an interesting/moot point.

Approx. 5% of the entity value to the consortium is in flybe equity...they clearly see value in the entity...question is how much value, although the share price is already approx. 6.5m above their offer about 7% of their entity value...not much!

[mhin2] 11/1/2019 18:34

Whatsup32. Yep, a touch of distraction when my son returned from school...as to British shares, I think the Banks, Fraud, Failure of Auditors, regulators, incompetent self serving over-paid management has been well documented...why do I still dabble? Thanks for making that clear.

Anyway I thought the due dilligence was of Flyb, not of stobards operations, and management were undertaking a separate `strategic review' in parallel (not in conjunction!)

[mhin2] 11/1/2019 18:30

Advfn137, if it was rubbish I do not think there would even be a deal on the table. The issue is that essentially the deal values the equity of the company at 2m, but the company as a whole significantly more. What is not clear is given the consortium made the offer involving substantial cash sums, what value is transferred from Flyb shareholders to the consortium...seems like a bargain to me.

[advfn137] 11/1/2019 18:30

Anyone still in this share?Long termersWhat did you buy at?How much did you invest in this rubbish? :(

[whatsup32] 11/1/2019 18:26

mhin2

‘This is British capitalism incorporating collusion , incompetent management , untrustworthy auditors and ineffectual regulators’

And here you are buying British shares and inadvertently selling them.

[advfn137] 11/1/2019 18:23

Anyone still in this share?Long termersWhat did you buy at?How much did you invest in this rubbish? :(

[mhin2] 11/1/2019 18:10

I inadvertently sold at 3.8p (a loss from a 13p purchase, which I thought was good). I regretted it, because I thought the offer was too low; was a opening gambit, and IAG may be forced to show its hand. I did not re-purchase. I am glad I didn't given the announcement of the sale of Gatwick slots to IAG. To me that effectively means Flyb has been sacrificed to the benefit of Stobbard, Virgin and IAE. I am sure the board could have batted for the shareholders (eg there could have been a better inducement for shareholders-even an offer of shares in the new entity but it seems to me that mismanagement left them financially snookered, and frankly they couldn't be bothered.

If I was still holding I would vote against the deal in hope that the best value is attained, even if that meant breaking the company up by selling its assets in pieces to the highest bidder...I imagine this would also release the cash the credit card companies are holding. But hey ho, this is British Capitalism incorporating collusion, incompetent management, untrustworthy auditors and ineffectual regulators...I am afraid PI's are at the bottom of the food chain....thats how the system works

[finders keepers] 11/1/2019 17:56

block the deal it goes in administration, branson pays 0p.

stake builder??

It's a packaged block sell.

If brokers allow me to short at 4p, I will take a Mil, with a guaranteed stop. Mind you I tried to short at 3.5p , shorting unavailable and it spiked to 4.4p.

1p been agreed.

Blocking the deal they get 0p. These BOD cares about Number 1, themselves, making sure they keep their jobs.

[frankie83] 11/1/2019 17:55

See you later 10k I was nice having you.....! ??

[minerve] 11/1/2019 17:55

Danny

I don't see what is in it for anyone else. The company is basically bust and this is the only solution that stands a chance of turnaround IMO. How do you know that the buyer in the market today doesn't have a vested interest in seeing it happen? Maybe a large stakeholder in the acquiring businesses? I am sure Virgin and others would have gone through the scenario of protecting their bid at such a low cost.

I could be wrong. I am a Stobart investor so I am not fully aware of other relations with Flybe. I am beginning to wonder whether this is all sector consolidation in the disguise of opportunism.