Britain’s Virgin Atlantic consortium agrees to buy Flybe

LONDON: A consortium led by Britain’s Virgin Atlantic said it will buy ailing no-frills airline Flybe for £2.2 million ($2.8 million, 2.4 million euros).

The group, infrastructure which specialist includes Stobart and investment firm Cyrus Capital Partners, said in a statement that their joint venture Connect Airways will pay just one pence per share under the deal. Connect Airways will also purchase Stobart Air, which is Stobart Group’s regional airline and aircraft leasing business.

“Cyrus, Stobart Group and Virgin Atlantic believe that combining Flybe and Stobart Air in a more integrated commercial cooperation with Virgin Atlantic’s long-haul operations will create a fully-fledged UK network carrier under the Virgin Atlantic brand,” they said in the statement.

Flybe had put itself up for sale in November after taking a major hit from weak passenger demand, rising fuel costs, a struggling pound and Brexit turmoil.