The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I know they don't ! They are Flybe aircraft !
Remember Monarch ! Easyjet were going to take them over, same base, same A320's, but no bid
I'm assuming there will not be a bid, but the are several vultures in the UK watching and waiting.
To survive as Flybe slash routes, especially the LHR operation reduce the fleet by half, but with their watertight leases that may be a massive problem. With fewer aircraft they can get the aircraft utilisation hours up near the magical 11 hours per day as I suspect they are miles short of that target, change BOD completely, reform, restart, there's a decent little airline in there somewhere
They might have to sell their slots (LHR eg) to raise money to survive
They have to cut out all the unprofitable routes, but the problem with that is they are then stuck with a fleet of aircraft they can't use, but still having to pay for them.
I think Stobart are play a clever waiting game with no need to bid just wait and see Flybe go, then pick up the pieces.
They already have 6 Flybe EM170's 3 in a franchise operations and 3 which were transferred this month, I wonder why?
Probably part of the restructure. Scrap to Edinburgh route which was a crazy decision in the first place and use the slots for Newquay.
Think your figures are a bit misleading '610 million quids worth of assets and 210 routes' where are the £610 million assets. 210 routes probably true, but most are very thin and I can't see BA & Easyjet fighting over Norwich - Exeter eg .
Scully, With respect I don't think you have a clue how airlines source their aircraft, ever wondered why leasing companies like GECAS operate owning over 2000 airliners leased to over 270 airlines. Then there are the investment banks, finance houses who own 1000's more.
If that's the case why sell ? Why not regroup, new management, slash uneconomical routes and build on the profitable ones. However, I suspect that one of the main problems preventing this scenario is the fact they are committed to 70+ expensive aircraft leases.
Unless Flybe are unique in the airline world, virtually no airline own any aircraft as they are all owned by aircraft leasing companies, banks etc and the airlines take them on watertight leases, so there is probably no value in the aircraft.
I also remember Easyjet being 'interested' in Monarch, same aircraft type, same base, own fleet maintenance, but offered no value.
I doubt any of the major players BA, Ryanair and Easyjet would have the slightest interest in bidding, Stobart I suspect will let Flybe fail, then help themselve to the bits whats left. I follow commercial aviation with great interest hold shares in IAG bought many years ago for 98p and Fastjet which is another airline disaster story. Fastjet a company like Flybe who lack direction and make crazy decisions. I was tempted to invest in Flybe as they appeared at the time to be a steady company, but as soon as the massive order for EM175 & EM190 the writing was on the wall, just like Fastjet starting with A319's complete misjudgement of the market. I don't know of any airline in the world who have changed the aircraft livery so many times in a few years. There was a new colour scheme introduced withe EM170, then that was changed 2 years ago to purple and 31 of the aircraft have been painted and now its being changed again, what a waste of money.