Flybe snubs rival rescue deal offering £65m
PUBLISHED: 09:56 20 February 2019 | UPDATED: 10:09 20 February 2019
Norwich Airport flight provider Flybe has snubbed a rival rescue deal from investors including US airline Mesa Air Group and backed by former Stobart boss Andrew Tinkler.
Flybe said it “does not believe that the indicative proposal is executable in the timeframe required to enable Flybe to continue to trade”.
It added it continues to back the existing takeover by the Connect Airways consortium - which consists of Sir Richard Branson’s Virgin Atlantic, Stobart Group and investment firm Cyrus Capital - as the “only viable option available to the company which provides the security that the business needs to continue to trade successfully”.
Among Flybe’s current operations are flights out of Norwich airport to destinations including Exeter, Alicante and Malaga, as well as offering flights to John O’Groats and Aberdeen through a partnership with Eastern Airways.
The Mesa consortium is reportedly proposing to make a capital injection of £65m at 4.5p a share.
But Flybe has already drawn down £15m in working capital from Connect.