13th Nov 2013 10:53
LONDON (Alliance News) - Flybe Group PLC's Chief Executive Saad Hammad Wednesday reiterated that his restructuring plan will turn around the struggling airline, after its biggest shareholder sold its entire stake in the company to institutional investors.
Rosedale Aviation Holdings Ltd, the family trust of the late investor and steel magnate Jack Walker, placed its entire 48.1% stake through Liberum Capital. The trust has been the airline's major investor for many years.
In a statement, Flybe said its free float is expected to rise to 85% following the sale.
"I would like to thank Rosedale Aviation for their support over many years. I would also like to take this opportunity to welcome aboard our new shareholders and thank existing investors who have increased their holding as part of this transaction," Chief Executive Saad Hammad said in a statement.
Flybe Monday reported that it swung to a profit in the first half of its current financial year thanks to a jump in revenues and as its cost cutting and restructuring programme started to pay off, but its new chief executive announced a further revamp of the airline, including cutting 500 jobs, in an effort to ensure the recovery is sustained.
"As I reported in our half year results on Monday 11 November, the economic environment remains challenging and all airlines face risks and uncertainties. I believe, however, that the turnaround of Flybe is gaining momentum," Hammad said in the statement Wednesday.
"The immediate actions announced in our results will incur significant transitional costs, but will deliver a full payback over the next two years. The board is confident that these initiatives will put the group on a firm foundation for performance improvement and future growth," he added.
Flybhe shares were down 10.1% at 94 pence Wednesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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