After issuing a profits warning, citing fuel costs, weakening demand and currency woes as major contributors, Exeter-based Flybe has put itself up for sale, though a merger with another airline may not be out of the question.
In March this year Dublin-based Stobart Air withdrew its bid for the regional carrier after months of negotiations, though it continued with its franchise agreement with Flybe. Stobart Air has not excluded the possibility of making a further bid – aviation sources have indicated that it would be a sensible strategic move by Stobart Air as it looks to expand operations from London Southend Airport.
Ryanair will also be a likely contender along with easyJet and IAG-owned British Airways. Whether these three carriers would be interested in acquiring Flybe as a whole remains to be seen. A potential scenario would see Ryanair picking up predominantly local airport slots as it is keen to expand its services from airports such as Manchester, Birmingham, Edinburgh, but also Schiphol in the Netherlands, where Flybe holds approximately 33%, 19%, 18% and 2% of landing slots, respectively. The Irish carrier has been busy recently with its acquisition of a major portion of Laudamotion. British Airways would likely be more interested in Flybe’s London Heathrow slots.
easyJet cannot be excluded as it continues to expand and challenge Ryanair’ stronghold on the low-cost European market, having recently acquired parts of the now defunct Air Berlin.
