RE: Short Tracker23 Oct 2018 19:13
Page 37 annual report, This bit worries me!....The business plan includes the committed acquisition
of four E175 aircraft (based on a cost of $114m before
discounts) scheduled for delivery between July 2019
and December 2019. No financing has been secured
for these aircraft to date. Operating lease financing
arrangements are being considered for these aircraft
given positive interest shown from potential lessors. If
no financing was available to the Group, Flybe has the
flexibility to cancel one or more of the orders triggering
penalties (staggered rates up to a maximum of 20% of
the aircraft cost), the amount depending on the timing
of the cancelation to the delivery date. Such penalties,
in combination with other downside scenarios, could
require additional funding from investors to enable the
business to continue.