Flybe Share Discussion Threads

[mhin2] 29/1/2019 13:22

HSBC value flybe at 17p per share, while COWS turnround strategy/rationalization being enacted/implemented including reduction of aircraft...(doh...hence reduction in seat capacity, whilst increasing intensity...doh)

[whatsup32] 29/1/2019 13:19

JacNife

It’s also there in black and white , should people decide to read it and not see what they want to.

5.9% increase in cost per seat
9% reduction in seat capacity (obviously not doing well)
2.3% decline in passenger yield .

Expensive aircraft , too many aircraft , too many staff , too much costs with reducing income.

As you said been losing money since start.

[mhin2] 29/1/2019 13:17

After a 9.0% reduction in capacity, Group revenue fell by 2.4% to £409.2m (H1 2017/18: £419.2m) although total revenue per seat ('RPS') increased by 7.2%.

· Adjusted profit before tax1 increased to £14.0m (H1 2017/18: £9.4m). Excluding the impact of the E195 onerous lease, the adjusted profit before tax of £9.9m (H1 2017/18: £9.2m) is slightly ahead of guidance given in the October trading update.

· Profit before and after tax reduced to £7.4m (H1 2017/18: £16.1m) reflecting £6.6m of non-cash revaluation losses on USD aircraft loans (H1 2017/18: gains of £6.7m).

· Net assets increased to £118.6m (31st March 2018: £91.5m) reflecting improved hedging gains given adverse sterling and fuel price movements and a lower pension deficit.

· Net debt increased to £82.1m including £70.6m cash (31st March 2018: £59.1m including £95.0m cash) reflecting the seasonality of cash and adverse sterling movements.

· Q3 is showing a positive improvement with 63% of seats sold (Q3 2017/18: 59%).

[mhin2] 29/1/2019 13:15

Jak, not a company at risk of imminent collapse, but if shaky accounting and BOD mis-reporting surely has to support Hoskings argument of a false market? and of course the removal of the board

[whatsup32] 29/1/2019 13:06

Maintenance is not an option, it’s mandatory. Engine maintenance 100hr , fuselage, landing gear , all carried out by qualified engineers on that particular type of aircraft.
If you have 80+ aircraft you can be sure maintenance hanger is packed.

[mhin2] 29/1/2019 12:59

Loganair. I thought I was filtered?

Anyway, yes of course POO and exchange rates are not all, but they were reducing costs elsewhere and Flybe had/have their own maintenance and engineering division, which if I am not mistaken they wanted to expand by taking Monarchs staff...all very strange

[loganair] 29/1/2019 12:56

Flybe's last trading statment was an overly cheerful and optimistic out look which looking back at how the airline has been run over the past 20 years by its management I for one did not believe.

mhin2 - have you any idea of what the cost of maintanence is of such a large fleet of aircraft? Usually an airline counts 1/5th of their costs to be spent on maintanence which has very little to do with the price of oil or pound against the dollar exchange rate.

[mhin2] 29/1/2019 12:49

JakNike, thats why the company in the last trading statement said it was turning things round and made a post tax profit...but I agree- a change of management needed now we are in a lower POO environment and pound strengthening against the dollar

[mhin2] 29/1/2019 12:35

Leave it to the big boys and their accountants/lawyers


...and down stob goes again...Just need to to go below the Cryrus injection of funds at £1.50 a share and game on...

[loganair] 29/1/2019 12:31

Flybe also has a pension deficit which Connect Airways is also going to make extra payments into, to sure up.

[mhin2] 29/1/2019 12:30

Flybe were reported to hold £57m in free cash, and have the lowest broker valuation (HSBC) value them at 17p per share...The loss per hour was one reporters estimation, and I am not sure if this included money held back by card acquirers (so it would have been a cash outflow, rather than a loss as such). Many companies have pension deficits, and judging by the figures given in the documentation supporting the 1p offer, the deficit didn't seem massive to me.

[mhin2] 29/1/2019 12:29

Stob normally bounces back, it doesn't look like its going to happen today...but who knows (except those on the inside)

[loganair] 29/1/2019 12:29

Flybe were reported to be losing £7,000 per hour or around £160,000 a day or around £5mln per month and this is why the credit card issuers where with holding money paid for flight tickets.

[mhin2] 29/1/2019 12:25

Seems to me many do not realise that the liquidity issue seems to have been just that a short term liquidity crises caused by card acquirers...would be good to know what the options were/could have been, and why the acquirers behaved the way they did. Also was this situation so bad that the BOD would allow the CONsortium to take so much of Flybe value...Hoskings seem to have a view...leave it to the big boys.

[loganair] 29/1/2019 12:22

Flybe could not have waited any longer, they already had to sale and lease back a hanger at Exeter airport and one of their aircraft just to raise quick cash to keep them a float over the Christmas and New Year period. Then almost immediately needed a further £10mln cash inject from Connect Airways to keep Flybe a float for just one further month until the take over goes through.

It seems to me that many posters on this thread do not realise just how short of cash Flybe are/were and how very close to collapse they are/were.

[qantas] 29/1/2019 12:22

Flybe Hammering up.

Please do your own research as always.

[mhin2] 29/1/2019 12:18

Jak, thats why support Hoskins and the appointment of Kohn...also lets see if other interested parties who were excluded from the process `early on' have anything to say. We just don't know enough, and most/if not all of us do not trust the incumbent Board.

[whatsup32] 29/1/2019 12:17

Had other Airlines been interested in Flybe would they not have shown their hand even at this very late stage.

There is no other interested party. If there were the Board and/or the interested party would have made an announcement.

[mhin2] 29/1/2019 12:12

Jak, I dont think they were allowed to emerge...look at what the BOD published about the bidding process...It would have been good to explore them...I imagine there were many options/possibilities...I would like Hoskings to be able to appoint Kohn, then we might see what happened and what possibilities were negated/overlooked, and (most importantly) why.

Stob share price just not being able to hold its own...I wonder why?

[loganair] 29/1/2019 12:10

Which other airline would have be able to take over Flybe?

IAG - Would only have wanted the LHR slots, which they would have had to give away for free to another airline.

Easyjet - With Flybe would have had over 60% of the UK domestic market.

Stobart - Could not have gone it alone, with out othet parties being involved with them.

[mhin2] 29/1/2019 12:05

answer to whats up easy...had there not been a conspiracy to circumvent all possible options what would have happened. At the moment we have no access/ability to scrutinize the financial state of Flybe when the strategic review took place, only the statements of accounts by the Bod, which led to HSBC valuing company at 17p. A bit of a non-sequitur to the Hoskings argument/scepticism