The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Could be another Serius Minerals all over again
Does anyone know if the Connect buyout includes the separate contract that Flybe has with SAS operating 7 x ATR72's on Scandinavian domestic routes for the last 4 years ?
The BOD decision to complete head on with BA out of LHR to Edinburgh & Aberdeen with a Q400 against a A320 was madness. Their USP price undercut BA, but with a tiny bit of research (I do the trip LHR to EDB at lease twice a month) will show that over 90% of the passengers are business people who do not pay for their seats, their companies do and don't give a tosh if the saving is £15 or £50 its frequency a flight ever hour, not 3 or 4 times a day.
An regional airline with a competent BOD do not challenge BA on LHR to Edinburgh/Aberdeen routes with 80 seat turboprop operating the route a few times a day. The argument that they are undercutting BA fares is not a valid proposition as basic research would prove. I use the route frequently and around 90% of the passengers on the BA flights are businessmen who do not pay for their seats, the company does so if the fare its £15 or £50 less than BA, its not a factor. A flight every hour in a A320 flying above the weather at 39,000 feet instead of flying in a slow Q400 at a maximum of 26,000 fleet through all the gunge is a no brainer. How the BOD ever thought this would be a profitable operation is crazy.
Fjetcrazy, Much to my loss (big loss) I've been in Fjet since the very beginning, however, of late there is virtually no information re developments out of the company. Today the shares increased by 10% but no RNS any ideas why?
The question is why would IAG want Flyb when they already have a very profitable 'regional' operation with CityFlyer with an extensive Domestic and International route system flying EM170's.?
My hunch if it is actually sold it will be bought not by another airline, but an investment group who will cut and slash aircraft and routes it turn it into a profitable but smaller operation
Sorry BA City Flyer, not BA Connect
Go back to just to 2015 when IAG withdrew the substantial shareholding it held in Flybe, so why would it want to go back in? If they wanted a larger regional operation they could simply develop BA Connect same aircraft EM170's
I agree they have an extensive route network, but they are all 'thin' routes mainly serviced by 80 seat Q400's and I would not consider them valuable. Forget IAG they would not be able to use the slots at LHR.
" Someone who could use Flybe’s short European / UK flights and bring even 2-5% of passengers onto their Long Haul Journeys" you are obviously not aware of the current developments of the large foreign airlines now operating long haul services out of regional airports, Manchester, Edinburgh, Birmingham etc so why would the require Flybe ?
In your dreams, as a IAG Shareholder for 20 years and even with the massive profits they are making, no free flights not even discounted ones. The only people who qualify for free flights are their staff.
I took a punt on flybe 2 months ago and I reckon its probably not going to be sold, but chug along with a share price of around 15-18p. Who in today crazy economic climate is going to buy a serious loss making airline with the future development options are very limited.
They were a perfect fit for BA, same aircraft A320/21's LHR based, trained pilots, cabin crew and all were employed directly into BA ops. BMI were also losing £36 on every seat sold, so its not quite the same scenario. .
zero
Starance. The only reason I reckon that there is interest at IAG, Virgin and maybe others is for the best slots. As an investor in IAG I really can't understand why they would want the airline itself, its a bad fit and has no value.
I took a punt at 13.13, but what concerns me is that Flybe appears to be doing nothing to attract a suitable buyer. They would look in better shape with severe cost cutting now, aircraft leases and unprofitable routes. Basically the impression is that the suitors are sitting back waiting for Flyb to fold, then pick up the best bits at a bargain price, I hope I'm wrong but having suffered a major loss in Fastjet its looking rather similar.
I bought in last time round at 14p and they went soaring to way above 1.50, I'm not worried as they still take 6 million holidaymakers on hols every year
One UK airline group are keeping a low profile, Airline Investments Limited who control BMI and Loganair. Both have substantial UK and European route networks which don't clash with Flybe.
BMI operate a all jet fleet EM135's and EM145 and Loganair are upping their route network. It would be a perfect fit and give AIL virtually 80% of the UK and near Europe airline routes, but can they afford it?.
Agreed, Virgins previous attempt at UK domestic routes was a disaster as the CAA published figures that revealed that Little Red had the worst load figures of any airline in aviation at the time with 37.6% of passenger seats occupied.[
Money757 I suggest you do a little research, check out www.jethros uk airline fleet lists and you will discover exactly which 6 Flybe aircraft (including regs of each) Stobart are using
Victory then lol
Scrap the Edinburgh, Aberdeen routes and it will sound even better