Regional carrier Flybe has sold its assets to Connect Airways, a consortium led by Virgin Atlantic. The deal, announced last month, establishes Connect Airways as a new operator formed in partnership with Stobart Group and Cyrus Capital.
Prior to the sale’s completion, Flybe considered an alternative rescue proposal from a U.S.-based group, which was ultimately rejected. Following that decision, Connect Airways moved forward with acquiring all Flybe assets and operations, including the subsidiaries Flybe Ltd and Flybe Aviation Services Ltd.
In a company statement, Flybe’s board urged shareholders to approve the proposed scheme, saying:
“The Flybe directors strongly advise shareholders to vote in favour of the Scheme at the shareholder meetings on March 4, 2019 in order to receive the consideration under the Scheme of 1 pence per share as otherwise shareholders are likely to receive no value for their shares in the Company.”
The transaction is expected to lead to the end of the Flybe brand, with services likely being absorbed and rebranded under Virgin Atlantic. Despite the change in ownership, Flybe flights are expected to continue operating as scheduled during the transition.