Massive news19 Nov 2018 18:58
Could EasyJet be on the verge of buying Flybe?
"We've always said that we will play a role in consolidation where it makes sense."
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ByJoel CooperChief Reporter
17:33, 19 NOV 2018
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Budget airline giants EasyJet could be interested in purchasing Devon firm Flybe.
The Exeter-based airline has recently been put up for sale.
And it is believed EasyJet may be on the verge of buying the firm, according to the Financial Times.
A spokesman for the airline said: "We've always said that we will play a role in consolidation where it makes sense.
"We evaluate all opportunities as they arise and have no further comment to make.”
Just last week we reported how the Exeter airline has been riding out turbulent times.
The company, which employs 1,000 of its 2,300 staff at its HQ in Devon, said last month that it was expecting to take a £29million hit caused by rising fuel costs, weakened demand for short-haul flights in a competitive market and a fall in the value of sterling.
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It has tried to modernise, putting in place a transformation plan under its chief executive Christine Ourmieres-Widener, who joined the airline in January 2017. It has introduced a new IT system to help with online sales, but that has endured ongoing costs.
The airline has done better at filling its planes and earning more from every seat – passenger revenue per seat lifted 6.8% as it reduced its flight capacity by 10 per cent.
But the airline is dogged by continuing challenges. It is Europe’s largest regional airline but it is a relatively small operation compared to competitors and that means it has to carry the burden of all its backroom costs.
(Image: Flybe)
Flybe has been reducing the number of planes it has from a peak of 85 in May last year to 78 to ensure that they are running at peak profitability, with plans to run at 70 planes. It has also cancelled unprofitable routes.
Its latest half-year results showed underlying pre-tax profits of £9.9million, up from £9.2million a year earlier, while group revenues fell 2.4 per cent to £409.2million.
There have also been changes in leadership. Vincent Hodder, chief strategy officer, and Peter Hauptvogel, chief information officer have both left the company.
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The company’s shares rocketed in February when Stobart Group said it was considering a bid for the company. Stobart and Flybe already work together and have a franchise arrangement between the two groups’ airlines.
However, Stobart walked away from its bid in March after the two firms failed to agree terms.