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DobboDobbo
Posts: 853
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 08, 2019 10:35 am

Leghorn - I wish you and your fellow shareholders well.

To clarify one point I was giving you my summary opinion based on facts you had disclosed. I accept that the points you raised are likely to be more nuanced than you can explain in here but my response was not speculative.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 08, 2019 10:37 am

Wait until after Wednesday of next week to check latest news for keyword "FlyBE" in google. By then either the interlopers win or an injunction goes in or a new bidder appears. If new bidder appears or interlopers win then you are probably safe enough to make plans.
 
bennett123
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 08, 2019 10:41 am

If a few months ago, the BOD recommended rejection of a bid of £100M and are now forcing through a bid of £2.8M does make you wonder if things have really changed that drastically. If they have, was this not foreseeable.
 
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FabDiva
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 08, 2019 11:28 am

Armodeen wrote:
So the question for me is; for an early April holiday, should I book BE? They are the only airline on the route. I guess I will but with a credit card.



I'd use a credit card if it's over £100, and have Travel Insurance (which is a good idea regardless) it sounds like the airline operations will continue either way as they have already passed to Connect, this is just the final winding up of the remains of Flybe PLC (which has probably been lumbered with all the debt to reduce the impact on Connect)
 
offloaded
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 08, 2019 12:14 pm

VS have long since had interline agreements with BE (eg. EXE MAN BGI, AMS MAN BGI) and shock horror even with BA (eg AMS LHR BGI, LIS LHR BGI). My point is, they already had a deal in place to provide feed to VS flights long before this deal was done. I wish BE luck, of course.
To no one will we sell, or deny, or delay, right or justice - Magna Carta, 1215
 
WhiskyZulu
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 08, 2019 3:13 pm

“Christine Ourmières-Widener, who has been running Flybe for two years, told The Independent: "Flybe is here to stay. We will welcome you in the future. Fly Flybe and we'll be there in 40 years.
"Our role is to connect the regions of the UK, between each other but also to the rest of the world." “

https://apple.news/AqHmaoewUTVyRAbuNY7I8Sg

I’ll have some of whatever the Flybe CEO has been smoking. There’s a question mark if they’ll exist in 40 days, never mind 40 years.
 
 
VFRonTop
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Tue Feb 19, 2019 8:46 pm

Interesting that Mesa does most of its flying for American and United.
 
davidjohnson6
Posts: 319
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Tue Feb 19, 2019 9:43 pm

Two doctors squabbling over who gets to treat a patient (and eventually submit a bill to the family) that is almost on its deathbed
 
DeltaB717
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Wed Feb 20, 2019 9:44 pm

It would appear Flybe intends to proceed with the Virgin/Stobart/Connect proposal...

https://otp.investis.com/clients/uk/fly ... id=1234629
 
UKflyboy
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 9:23 am

So the first new VS “feed” flight for VS at LHR has been announced.

Daily GCI-LHR

https://www.itv.com/news/channel/2019-0 ... announced/
 
VFRonTop
Posts: 306
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 10:18 am

UKflyboy wrote:
So the first new VS “feed” flight for VS at LHR has been announced.

Daily GCI-LHR


Congrats to Guernsey and Flybe, wasn't expecting this to be first announced route.
Makes some sense as it is one of the few airports that does not have a direct link to AMS / other EU hub.

Best of luck to them.
 
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CarbonFibre
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 11:23 am

Why do ITV news state it "finishes in October 2019" ?
 
TC957
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 1:11 pm

Probably because Flybe's Winter 2019 / 2020 flights aren't released yet.
 
8herveg
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 1:26 pm

With these feed flights from Flybe to LHR, will they have interline agreements with any other airlines, or will they only be able to book/transfer onto VS flights under one ticket?
 
Bhoy
Posts: 358
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 1:58 pm

8herveg wrote:
With these feed flights from Flybe to LHR, will they have interline agreements with any other airlines, or will they only be able to book/transfer onto VS flights under one ticket?

I would imagine once the takeover is sorted properly, they'll have DL flight numbers, too, with the VS TATL JV, it makes no sense to operate VS-branded feeders to LHR and then exclude Joint Venture flights.
 
8herveg
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 2:21 pm

Bhoy wrote:
8herveg wrote:
With these feed flights from Flybe to LHR, will they have interline agreements with any other airlines, or will they only be able to book/transfer onto VS flights under one ticket?

I would imagine once the takeover is sorted properly, they'll have DL flight numbers, too, with the VS TATL JV, it makes no sense to operate VS-branded feeders to LHR and then exclude Joint Venture flights.


Sorry, I should have been clear...when I said VS, I meant DL/VS, given they are the same airline (basically!). But what if pax want to fly to places that DL/VS don't operate to? Could they still do that from a Flybe booking? It's all very well Flybe getting these slots at LHR, but the DL/VS network is limited compared to BA's network.
 
fcogafa
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 3:24 pm

CarbonFibre wrote:
Why do ITV news state it "finishes in October 2019" ?


Maybe it is a slot sitter, seems a strange route otherwise
 
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OA260
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 6:40 pm

8herveg wrote:
With these feed flights from Flybe to LHR, will they have interline agreements with any other airlines, or will they only be able to book/transfer onto VS flights under one ticket?


Im sure they will have interline agreements with carriers that VS already currently have.
 
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Aisak
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 9:20 pm

8herveg wrote:
Bhoy wrote:
8herveg wrote:
With these feed flights from Flybe to LHR, will they have interline agreements with any other airlines, or will they only be able to book/transfer onto VS flights under one ticket?

I would imagine once the takeover is sorted properly, they'll have DL flight numbers, too, with the VS TATL JV, it makes no sense to operate VS-branded feeders to LHR and then exclude Joint Venture flights.


Sorry, I should have been clear...when I said VS, I meant DL/VS, given they are the same airline (basically!). But what if pax want to fly to places that DL/VS don't operate to? Could they still do that from a Flybe booking? It's all very well Flybe getting these slots at LHR, but the DL/VS network is limited compared to BA's network.


DL/VS are not the same airline (basically or not). Yes. DL holds 49% ownership of VS and VS and DL are allowed to act as one single entity across the Atlantic thanks to their JV, but that only covers scheduling, pricing, codesharing and little more... VS still is an independent entity with its own agreements regarding interlining, codesharing, FF accrual/redemption, level recognition, and blah blah blah..... VS has its agreements while Delta has others.

If the connect airways bid goes on, and Flybe starts trading as Virgin Connect operated by FlyBE flying with the VS code, there will be no more BE flights and you will no loger be able to book a Be flight, but a VS flight (operated by BE) via the regular VS sales channels. Those VS flights will be like regular VS flgihts also enjoying interline and other agreements held by VS.

Given that most points in the UK might be reachable via the DL/AF-KL-AZ deal, it involves less backtracking via LHR or MAN so it might be sensible to include "Virgin Atlantic and subsidiaries/franchises" to the wording of te DL/VS JV agreement.
 
UKflyboy
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 9:25 pm

Flybe has just posted on Twitter that the sale is completed.

Sorry I cannot post photo shots.
 
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FabDiva
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 9:49 pm

Flybe posted on Facebook

Today's confirmation of the sale of Flybe to Connect Airways secures an exciting future for our customers & employees as we continue to provide vital regional connectivity in the UK & beyond. Our confirmed schedule operates as normal & you can book now at http://flybe.com
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 9:57 pm

https://www.bbc.co.uk/sounds/play/p071jrpr

3:40 minutes in to this the shenanigans leading up to the sale to the consortium are discussed with the individual nominated by one of the major shareholders to be be a director who would investigate the sale process. EGM still not called to elect him as a director or fire the chairman.
He lets the interviewer intimate what went on such as management team being bribed with continued employment, other bidders being forcibly excluded, crises conveniently arising to the benefit of the preferred(only permitted bidder).

A flybe pilot has been suspended for openly criticising the boards performance over the last few years.

There was a number of other bidders(or interested parties) including MESA who had to shout publicly that they were interested in buying in recent days because they were being stonewalled by the board of directors. They had expressed interest months ago according to this radio report.
 
Mullion
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 10:10 pm

It done and dusted so lets get on with it, we could not of afforded to let Flybe go bust.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 10:17 pm

Mullion wrote:
It done and dusted so lets get on with it, we could not of afforded to let Flybe go bust.

FlyBE didn't have to go bust. There was another bidder who was willing to take it over. There was another bidder with extensive experience of running a regional airline. There was another bidder who would have cleared out the top layers of Management. There was another bidder who was willing to recapitalize the airline while not stripping the shareholders of their holding. There was another bidder who could have guaranteed their liquidity and would have ensured that the Credit Card companies stopped holding back their working capital.

As a shareholder I feel like I've been mugged and although my other shareholdings have in the last week appreciated by more than what I stand to loose on FlyBE I still feel like I've been mugged. Hopefully the new Director can investigate and find wrongdoing by the Board and they get barred from holding a Directorship ever again.
If the Consortium hadn't given them continued employment at the bought out FlyBE they'd have never got another job in the Industry again.
 
Mullion
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 10:27 pm

I have asked this question on other forums and nobody seems to be able to answer. What were Mesa offering?
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 10:33 pm

https://news.sky.com/story/arizona-airl ... l-11642267

Along with the approval of a number of major shareholders it was a compelling offer but circumstances had been fashioned which the Board of Directors felt allowed them to reject the offer and instead chose the outrageously poor offer from the Consortium.
 
Mullion
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 11:08 pm

Didn`t the deal need to be 51% UK owned , there still doesn`t seem to be any bones on the offer and it seems to have been left far too late to have
been a serious challenge. To be honest it is the credit card companies which have made the deal so urgent by holding a huge ammount of funds which
pushed the airline to the brink.
 
JobsaGoodun
Posts: 104
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 11:21 pm

leghorn wrote:
https://news.sky.com/story/arizona-airline-mesa-swoops-with-bid-to-ground-flybe-deal-11642267

Along with the approval of a number of major shareholders it was a compelling offer but circumstances had been fashioned which the Board of Directors felt allowed them to reject the offer and instead chose the outrageously poor offer from the Consortium.


Was it really that compelling? Existing shareholders were being offered nothing, granted they would have retained their shareholding but the group involving Mesa were offering £65m via the issuing of new share capital at 4.5p per share...that's an extra 1.44 billion shares being issued in a company that currently has circa 215m of share capital.

With that ratio, even if the company could get to a market cap of £100m, each share would still only be worth 6p. I'm not so sure it was a compelling offer.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 11:27 pm

The outline deal proposed of which all the details have not been disclosed to the public(including me) is preferable to me. I'm a shareholder. It was also supported by large institutional investors. Are you a shareholder in flyBE? It would also have brought FlyBE to the point where it was actively being bid upon by two parties which should have been the case but the Board of Directors allowed certain parties to coalesce.
 
JobsaGoodun
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Thu Feb 21, 2019 11:57 pm

I was a shareholder in Flybe with approx 60k shares, all of which I sold at 4p when the recommendation of the 1p offer was announced. I had an average buy price of 54p so I lost out significantly. Don't get me wrong, I'm not happy in the slightest at how this has all turned out, and you can work out yourself what I've lost financially, but if the Mesa offer is as it has been reported in the press, and simply cash being provided as part of an share issue, then I can begin to understand how this would have appeared no better in the short to medium term when presented.
Last edited by JobsaGoodun on Fri Feb 22, 2019 12:14 am, edited 1 time in total.
 
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Aisak
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 12:02 am

JobsaGoodun wrote:
leghorn wrote:
https://news.sky.com/story/arizona-airline-mesa-swoops-with-bid-to-ground-flybe-deal-11642267

Along with the approval of a number of major shareholders it was a compelling offer but circumstances had been fashioned which the Board of Directors felt allowed them to reject the offer and instead chose the outrageously poor offer from the Consortium.


Was it really that compelling? Existing shareholders were being offered nothing, granted they would have retained their shareholding but the group involving Mesa were offering £65m via the issuing of new share capital at 4.5p per share...that's an extra 1.44 billion shares being issued


That’s it. I’ve been reviewing the 2018 financial report. And yes, that’s an outrageously high number of new shares:

As at 31st March 2018, the Company’s share capital comprised a single class of ordinary share
of one pence each. The issued share capital of the Company was £2.2m comprising 216,656,776 ordinary shares of one pence each.


That means current owners of 100% of Flybe PLC would overnight become owners of only 13% of FlyBE PLC.
Not only it would mean that at least 87% of the company would be owned by nonEU , which is not currently allowed by the EU aviation law, but also connect airways’ partners bridge loan should be immediately repaid reverting to the previous struggling financial situation and with no change in their foresable future flying on their own.
Connect offer includes flying under VS flag via a franchise agreement.

Current shareholders might say Connect offer only lets them with an empty shell company with 2.8m in the bank. Under my view, the Mesa offer just leaves them owing 13% of a company with an airline holding no operating certificate... the connect one doesn’t seem that bad after all
 
Mullion
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 7:23 am

Thanks Aisac for making it a bit clearer, as I see it the only people who were possibly going to support it were people who owned shares and would
sell the shares as soon as the deal went through once again putting the airline in a situation of no direction and no money
 
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Aisak
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 10:45 am

Mullion wrote:
Didn`t the deal need to be 51% UK owned , there still doesn`t seem to be any bones on the offer and it seems to have been left far too late to have

Right now, the law dictates that FlyBE has to be 50%+ owned by EU nationals. Connect Airways is a British company owned 30% by VS (British, unless you want to dig through their shareholders structure), Stobart Group (Irisih) and the hedge fund which is Luxembourg based.
Right now, if/when the deal goes through, FlyBE will be still under the EU law.

If/when Brexit happens, the UK has stated that it will continue with the same current criteria of a British airline having to be 50%+ [EU27+UK]-owned. There is a risk, yes, but VS itself and IAG's BA also face the same problem so I think they are safe as long as most aviation industry in the UK faces the same problem.

The risk is now on the other side of the deal. As part of the deal of creating Connect Airlnes (holding company) in which Stobart group holds a 30%, Stabart Air becomes 100% Connect Airlines owned.
So Stobart Air, an Irish airlne will be 100% owned by a British entity. If the EU wants to be flexible, they will see that 30+70 is still in EU hands.
Also a risk, but more business related, is the other 30% held by Virgin Atlantic. Main customers of Stobart Air are FlyBE (seems ok), Aer Lingus for their Regional franchisee operation and BA Citiflyer with some wetleased E190.
I sincerely don't know how long IAG owned airlines will keep a capacity contract with an airline (partially) owned by competitor Virgin Atlantic.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 11:02 am

Mullion wrote:
Thanks Aisac for making it a bit clearer, as I see it the only people who were possibly going to support it were people who owned shares and would
sell the shares as soon as the deal went through once again putting the airline in a situation of no direction and no money

Well you are wrong there because I hold shares for the long term as a general strategy and I'll be holding this share until it is nullified.
 
3AWM
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 11:58 am

JobsaGoodun wrote:
I was a shareholder in Flybe with approx 60k shares, all of which I sold at 4p when the recommendation of the 1p offer was announced. I had an average buy price of 54p so I lost out significantly. Don't get me wrong, I'm not happy in the slightest at how this has all turned out, and you can work out yourself what I've lost financially, but if the Mesa offer is as it has been reported in the press, and simply cash being provided as part of an share issue, then I can begin to understand how this would have appeared no better in the short to medium term when presented.


You are exactly right.

Flybe wasn't sitting on any assets of note, the only thing it had of any value was being a going concern so it was worth nothing to shareholders being broken up.

Being a shareholder in Flybe at the end was like owning a house with a 100% mortgage - basically you own nothing other than the ability to continue living there.

In the short term Flybe was facing not being able to meet it's lending commitments - ie the next mortgage payment so shareholders would lose control of the company for creditors.

The airline needed to be recapitalised and this probably values the shares at round about the 3-4p mark anyway.

No-one was going to come in at this stage and offer 20p per share.

The board made a mistake when they didn't accept the earlier offer from Stobart, I suspect they thought they had good interest from both Stobart and Virgin and they could play both off for a premium, however this backfired when they teamed up to buy.
 
AerostarUK
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 12:30 pm

Seems strange that Credit Card Companies can sink an airline in this way. Does anyone have any info on how they acted against others..?...Air Berlin, Monarch, Primera, Germania, Small Planet etc....?
 
bennett123
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 12:48 pm

At what point do the CC companies release the money?.
 
3AWM
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 12:54 pm

The UK consumer credit act requires credit card companies to make good any costs to the purchaser if the vendor goes out of business.

That means they would have to pay for flights booked by the cardholder that Flybe could not provide because they were no longer trading.

Credit card companies understandably don't want to take on this cost so they hold back funds to meet any potential liability based on the credit risk they assess.

I seem to remember credit card cos being factor in XL going under but probably it's a consideration for all of these. It's not the credit card company that causes the airline to go under it's the airline's lack of ability to meet liabilities when they fall due.
 
AerostarUK
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 1:38 pm

But the airline could meet its liabilities as they fell due.........my understanding is that they couldn't due to £50M being withheld.....in which case the credit card company de facto was the cause......
 
3AWM
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 1:45 pm

AerostarUK wrote:
But the airline could meet its liabilities as they fell due.........my understanding is that they couldn't due to £50M being withheld.....in which case the credit card company de facto was the cause......


No you are are wrong. The £50m are for flights that have been sold but not been provided yet and the airline is losing money every day.

Therefore the airlines existence is based on borrowing money from the credit card cos against future services that it can't provide at a profit.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 2:02 pm

Credit Card Companies are not all the same. It appears to have been the actions of one or two processors.
FlyBe had total revenue of about 750m in 2018 financial year which is mostly ticket sales. This was a quiet time of year with FlyBe being in distress in January when they were forced to transfer the assets to the consortium. 75% comes from credit card payments.
A small number of Credit Card companies were able to hold 50m. That means they must have been retaining everything that was booked through them at a quiet time of year when not a lot of trade was being done or many tickets being sold in advance. We can't see the figures and those who have a better view are very evasive so as not to stoke the ire of the credit card processors.
It looks strange. proportions look off. quiet time of the year. the big sales for xmas season should have been released by the credit card companies to the airline.

FlyBE isn't the sort of airline where you are booking August Holiday flights in January. It looks strange.
 
bennett123
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 2:14 pm

About 6% of annual revenue for flights sold but not yet taken does not seem that high.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 2:25 pm

bennett123 wrote:
About 6% of annual revenue for flights sold but not yet taken does not seem that high.

by one or two card payment processing companies when most of that annual revenue hasn't even been triggered on their credit cards by customers yet. Those credit card companies appear to have been holding everything that was processing through them. It looks wrong.
8.33% of a year is one month but this is the quiet month of January so that is not 62.5million in revenue for that month but maybe 25 to 30 so it is hard to see how a few processors could have locked down 50m. The high periods would be Easter, Xmas, July and August.
 
bennett123
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 2:53 pm

Easter is mid April.

If I wanted to fly at that time, I would be booking by now.

There is also Half Team in mid March.
 
leghorn
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Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 2:58 pm

bennett123 wrote:
Easter is mid April.

If I wanted to fly at that time, I would be booking by now.

There is also Half Team in mid March.

The distress was in first two weeks of January.
 
Bongodog49
Posts: 77
Joined: Fri Feb 08, 2019 11:35 am

Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 3:12 pm

leghorn wrote:
bennett123 wrote:
About 6% of annual revenue for flights sold but not yet taken does not seem that high.

by one or two card payment processing companies when most of that annual revenue hasn't even been triggered on their credit cards by customers yet. Those credit card companies appear to have been holding everything that was processing through them. It looks wrong.
8.33% of a year is one month but this is the quiet month of January so that is not 62.5million in revenue for that month but maybe 25 to 30 so it is hard to see how a few processors could have locked down 50m. The high periods would be Easter, Xmas, July and August.


Passengers would be booking anything from a day to maybe 6 months ahead of their flight date, Easter booking would have been happening right when the crisis hit, also people tend to start thinking about summer travel once they have got over Christmas and the new year. Prime example, I booked a summer trip for the end of June on January 6th.
 
leghorn
Posts: 869
Joined: Sun Jan 22, 2017 9:13 am

Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 3:22 pm

Bongodog49 wrote:
leghorn wrote:
bennett123 wrote:
About 6% of annual revenue for flights sold but not yet taken does not seem that high.

by one or two card payment processing companies when most of that annual revenue hasn't even been triggered on their credit cards by customers yet. Those credit card companies appear to have been holding everything that was processing through them. It looks wrong.
8.33% of a year is one month but this is the quiet month of January so that is not 62.5million in revenue for that month but maybe 25 to 30 so it is hard to see how a few processors could have locked down 50m. The high periods would be Easter, Xmas, July and August.


Passengers would be booking anything from a day to maybe 6 months ahead of their flight date, Easter booking would have been happening right when the crisis hit, also people tend to start thinking about summer travel once they have got over Christmas and the new year. Prime example, I booked a summer trip for the end of June on January 6th.

Not booking in quantity and was this summer trip with a regional airline rather than a LCC or bucket 'n spade airline.
Most normal people's credit cards are overloaded in January and they hold off until February to clear some of the balance.

If what happened was normal the people who manage cashflow in FlyBe would not have been caught out and it has been worthy of comment in the National papers and on the national broadcaster.
 
bennett123
Posts: 8866
Joined: Sun Aug 15, 2004 12:49 am

Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 3:23 pm

I have a short trip to Rome in May, the deposit was paid in October.
 
leghorn
Posts: 869
Joined: Sun Jan 22, 2017 9:13 am

Re: Updated: BE being bought for £2.2m by a consortium including VS, Stobart Group and Cyrus Capital

Fri Feb 22, 2019 3:39 pm

So? I've had various flights for the first two quarters of 2019 bought since Q3 2018 but they are not typical of the fill rate for the seats on a plane. The planes fill up in the 4 to 10 weeks before a flight with a smaller number of urgent bookings closer to flight date.
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