Member Info for Lundy

This may not be the forum in which to ask the question, but can someone give their opinion how the new owners intend to make the airline profitable. Putting aside it has been hopelessly run since Mr Walsh offloaded BA Connect to Flybe, I fail to see how anyone can make a success of this without massive restructuring, redundancies and base closures, I find it all rather baffling, maybe someone could enlighten me.

So Scully, old fruit, think you said somewhere, this stock was going to real fly when the market opened yesterday, still, it’s only Tuesday I guess.

Scully12345
I find your comments an insult. Goodbye.

Some months ago, Mrs CO-W instructed investors to take up the brace position, a month ago, she advised them to place their life jacket over their head and tie the tape in a bow at the side. Yesterday, she ordered them to pull the red toggle to inflate their life jacket. I’m not an active investor these days, I just have an interest in Companies and the stock market. I would be surprised to see much change in the SP today, tomorrow or even next month. I can’t see a bidding war, why would there be one? If anyone buys the business, the restructuring costs will be massive and who would cough up, I don’t know, the £100 million plus needed. I’m sure the Flybe board have already tried to secure more funding, without success, which is hardly surprising, given their ability to burn through serious amounts of cash at an alarming rate, so the only option was to put up The For Sale sign. I see that KPMG have been appointed for advice on how to, presumably, keep the business in the air, I see the credit card companies are seeking close on £10 million cash to protect their exposure. I fear that all this, will simply add to customer confidence being lost, and the travelling public will look elsewhere when it comes to parting with their hard earned cash. Perhaps a white knight will come forth, I sincerely hope so, but I’m not holding my breath. Good luck everyone.

Whoever succeeds in taking Flybe over at the right money, as I said earlier, will need to undertake a massive downsizing of the existing business. That also poses another issue for the new potential owner as significant restructuring would cost a huge amount of money most likely millions, in terms of redundancies, fleet disposal and probably a myriad of other money consuming costs, so I don’t believe it’s that simple. I accept the share price is ridiculously low, and may bounce back, but I’m not holding my breath. The profit warnings are always followed by one excuse after another, which IMO all started after the acquisition of BA Connect. That was probably the worst decision ever made. Regrettably, I think the barman serving the drinks in the last chance saloon, have be just about to call last orders.

I would have thought that anyone interested in trying to acquire this business could offer whatever they want, at the end of the day, it’s only worth what anyone is prepared to pay. Either way, if FLYBE is taken over, there will be a huge hatchet job in massive restructuring etc otherwise it will simply limp along, which it has done for years.

Not really sure just how useful that will be, as Alitalia aren’t in great shape financially.