Rescue deal could let Flybe take off again

FLYBE planes may start taking off from British airports again early next year after administrators said they had agreed a rescue deal for the collapsed airline.

Flybe had launched a base at Cardiff Airport in 2015 as part of a 10-year agreement, but the airline ceased jet operations out of the airport with effect from the start of the 2019-20 winter programme.

Instead, Flybe introduced smaller capacity Q400 propeller planes with capacity for 78 passengers.

Flybe was then pushed into administration earlier this year as Covid-19 destroyed large parts of the travel market. Even before the pandemic started, in January the airline had narrowly administration.

The collapse of Europe’s largest regional airline put thousands of jobs on the line in March.

“Unfortunately, with the situation that has developed with (coronavirus), an already weak company, I’m afraid, just hasn’t been able to survive,” transport secretary Grant Shapps said at the time.

Now, a company led by hedge fund executive Lucien Farrell is to buy the airline and operations could begin again as soon as next year.

The regional carrier expects to start off smaller than before.

Flybe will be bought by Thyme Opco, 51% owned by a firm called Thyme Investco, which itself is 51% owned by Mr Farrell.

Mr Farrell runs New York hedge fund Cyrus Capital’s operations in avoided

Europe. Cyrus was a shareholder of Flybe, along with Sir Richard Branson’s Virgin Atlantic, before its collapse.

No sale price was disclosed. The deal must pass regulatory hurdles before being finalised.

But it was announced yesterday morning that subject to certain confidential conditions, this new deal is expected to allow the business to restart operations under the Flybe brand in early 2021.

Administrators said they will work together with Thyme Opco, the company associated with Cyrus Capital who completed the deal, the Flybe management team and the UK Civil Aviation Authority to prepare for the relaunch of the airline’s operations.

A spokesperson for Thyme Opco said: “We are extremely excited about the opportunity to relaunch Flybe.

“The airline is not only a wellknown UK brand, it was also the largest regional air carrier in the EU, so while we plan to start off smaller than before, we expect to create valuable airline industry jobs, restore essential regional connectivity in the UK, and contribute to the recovery of a vital part of the economy.”

Simon Edel, an administrator at accountants EY, said: “Today’s announcement, and the upcoming completion of this sale, will be great news to communities around the country that were previously served by Flybe.

“The restart of this iconic brand, which was once Europe’s largest regional airline, will provide a potentially significant boost to aviation jobs, regional connectivity and local economies.”