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Flybe finalises Virgin consortium sale

The loss-making regional carrier says it has completed the sale of its assets to the Connect Airways consortium.

The loss-making regional airline Flybe has completed the sale of its assets to a consortium of buyers led by Virgin Atlantic.

The UK carrier confirmed it had sold its assets and operations for £2.8 million (€3.2 million) to the consortium, Connect Airways, which consists of Virgin Atlantic, Stobart Group and the hedge fund Cyrus Capital.

The deal comes just two days after Flybe rejected a last-minute rival bid by a group led by the US airline Mesa and a former Stobart executive.

Agreeing to the Connect Airways offer – which also covers two subsidiaries Flybe Limited and Flybe.com – came several hours before today’s deadline for accepting it. Flybe flights continue as normal.

The deal has also been given the go-ahead by the European Commission competition authority.

Accept or lose
At the same time, Stobart confirms it is disposing the Flybe franchise carrier Stobart Air and the aircraft leasing company Propius to Connect Airways, which will combine them with Connect Airways.

At a meeting scheduled for March 4, Flybe shareholders will be told to accept the offer or risk having no value for their shares.

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