Flybe to fly again next year after administrators agree sale to Cyrus Capital
Collapsed regional airline Flybe will take to the skies again next year after its administrators agreed for it to be sold to a firm controlled by hedge fund Cyrus Capital.
Administrators from EY said they had agreed to a sale of Flybe’s business and assets, including the brand, intellectual property, stock and equipment, to Thyme Opco.
The deal is expected to allow Flybe’s business “to re-start operations as a regional airline in the UK under the Flybe brand in early 2021”, the administrators said.
Flybe, which had been Europe’s largest regional airline with around nine million annual passengers, collapsed into administration in March after the coronavirus pandemic caused a slump in demand for flights.
The airline had served over 80 airports across the UK and Europe, accounting for more than 40 per cent of domestic flights in the UK.
A Thyme Opco spokesperson said the company was “extremely excited about the opportunity to relaunch Flybe”, but was planning to “start off smaller than before” when it revives the airline.
“We expect to create valuable airline industry jobs, restore essential regional connectivity in the UK, and contribute to the recovery of a vital part of the country’s economy,” they added.
“Today’s announcement, and the upcoming completion of this sale, will be great news to communities around the country that were previously served by Flybe,” said EY administrator Simon Edel.
“The restart of this iconic brand… will provide a potentially significant boost to aviation jobs, regional connectivity, and local economies,” he added.
Susannah Streeter, senior investment and markets analyst, at Hargreaves Lansdown said that the announcement was a “shred of good news” for the aviation industry.
“Although the new operations will start small, they will potentially be a huge boost to areas of the country cut off from the aviation network when Flybe collapsed”, she added.
“More than 2,000 jobs were axed when Flybe went into administration, so competition for the positions the company will create will be fierce but a very welcome development for a sector which has been floored by the Covid crisis.”
Airline stocks rose on the back of the announcement, with IAG up 1.4 per cent, Easyjet up three per cent and Ryanair up 0.8 per cent.
However, Streeter warned that the new Flybe would have its work cut out as it launches into the worst ever crisis the embattled sector has ever experienced.
“Given that Flybe collapsed even before the pandemic hit, the new owners will have their work cut out to make the airline viable again, particularly given that both easyJet and Ryanair have announced base closures to stop haemorrhaging cash as demand for air travel remains depressed”, she added.