23rd Nov 2018 06:53
LONDON (Alliance News) - Virgin Atlantic Airways Ltd is in talks about a takeover bid for Flybe Group PLC, the Sky News reported late Thursday.
On Wednesday last week, Flybe, a London-listed regional airline, put itself up for sale, as rising fuel costs and currency headwinds continued to hinder performance.
On Thursday last week, the Financial Times reported that Flybe is a takeover target for both peer easyJet PLC and infrastructure company Stobart Group Ltd. Stobart previously had bid for Flybe.
Sky News said Virgin Atlantic and Stobart were the leading potential bidders for Flybe, with easyJet understood not to be interested in making an offer.
Sky News reported that Virgin Atlantic was pursuing an interest in Flybe because of its access to "valuable" take-off and landing slots at London Heathrow Airport, which are ring-fenced for domestic flights.
The transatlantic airline is exploring options to attract passengers into its long-haul network. Flybe and Virgin Atlantic already operate a code-share pact aimed at improving access to Virgin Atlantic's long-haul routes for regional customers using Flybe's flights into Heathrow and Manchester.
If Virgin Atlantic succeeded with an offer, the Flybe brand would be unlikely to survive, according to industry analysts, Sky News said.
Related Shares:
Flybe GroupSTOB.LeasyJet