Deal rescues Flybe

VIRGIN Atlantic and Stobart Group have swooped on regional airline Flybe in a £2.2 million deal which will see the creation of a new airline group.

The companies, in conjunction with Cyrus Capital Partners, have agreed an offer of just 1p per share for Flybe, which put itself up for sale in November.

Under the plans, the airline will be combined with Stobart Air in a joint venture called Connect Airways. Cyrus will own 40% of the new company, while Virgin and Stobart will take 30% apiece.