Why Flybe might be bought, despite huge losses

By Linsey McNeill
Home » Why Flybe might be bought, despite huge losses

Both Air France-KLM and Lufthansa are allegedly discussing rescue plans for Flybe, which collapsed for a second time last month.

They are understood to have approached administrators with an offer to buy the regional airline out of insolvency, according to The Telegraph.

The two airlines are thought to be keen to get their hands on Flybe’s seven pairs of take-off and landing slots at Heathrow and its five pairs of lots at Amsterdam’s Schiphol airport.

Slots at Heathrow can be worth tens of millions of pounds, but Flybe’s slots can’t be sold, says The Telegraph, because British Airways was forced to give them to the airline as a condition of the Competition Commission approving BA’s takeover of regional airline bmi in 2012.

If airlines want Flybe’s slots, they might need to buy the whole business, taking on its liabilities as well as its assets, said the publication.

Air France and Lufthansa declined to confirm or deny their interest in Flybe.

If a buyer can’t be found, its Heathrow slots will be returned to a central pool to be re-issued by the airport.

A spokesperson for Flybe’s administrators told The Telegraph: “The administrators remain in active discussions with credible parties.

“Additionally, there are a range of important stakeholders who remain supportive of the process.”

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