IAG interest City AM Article26 Nov 2018 14:41
The Exeter-based airline’s shares already climbed by around 70 per cent on Friday after Sky News first reported VIrgin Atlantic’s interest, meaning its value has doubled since Thursday.
Virgin Atlantic has said it is looking at a number of options including closer commercial ties or an outright purchase of Flybe. IAG has declined to comment, while rival budget airline EasyJet – tipped as another possible buyer – has dismissed reports it is currently considering a bid.
IAG is expected to be the front-runner if it ends up going head-to-head with Virgin Atlantic.
Flybe has been exploring a number of cost-saving measures as it looks to battle against lower demand, rising fuel costs and currency headwinds, and tries to recover from a highly-expensive overhaul of its computer systems.
The airline manages 78 planes, which fly from a range of locations across the UK to locations within Europe, and serves around eight million customers a year.