Flybe.com Press release
Flybe agrees to acquire BA Connect
FLYBE TO BECOME LARGEST REGIONAL AIRLINE IN EUROPE
Flybe announces that it has reached agreement in principle with British Airways whereby it will acquire British Airways’ BA Connect regional airline business, subject to a number of conditions precedent including the completion of due diligence.
The proposed acquisition will create an enlarged business with over £600m in revenues and carrying nearly 10 million passengers. The business will be operated in line with the successful Flybe business model concentrating on short haul domestic and European major city markets.
BA will ensure that the new business has sufficient funding in order to achieve its growth targets and the transition out of the current BA Connect fleet. In return it will acquire a 15% stake in the new business.
The acquisition (which does not include BA Connect’s London City or Manchester / JFK routes) will significantly increase Flybe’s route network both in the UK and continental Europe making Flybe Europe’s largest regional airline.
The new larger Flybe will have the following dimensions:
159 Routes, including 35 new routes
10 Million Passengers
£600m in revenues
Europes largest regional airline
Operating from 23 UK and 36 European airports
70 aircraft by the end of 2007
Whilst reinforcing Flybe’s domestic UK presence, the acquisition will also result in an increase in the proportion of Flybe’s business passengers with new routes to key European commercial centres including Paris, Düsseldorf, Frankfurt and Milan.
Flybe plans to accelerate its current fleet renewal programme and will phase out all of the existing BA Connect fleet as soon as possible. The current Flybe £1.2bn investment programme in Bombardier Q400 and Embraer 195 aircraft will be complete by 2009. At that time Flybe will have a fleet of 82 aircraft, which will be one of the youngest and most environmentally sensitive fleets in the world. In line with its environment policy Flybe will by then have reduced fuel consumption by over 50% per seat.
The acquisition comes as Flybe announces its strongest ever summer trading period, resulting in an operating profit of £20.5 million* for the six months to 30th September 2006, which compares to an operating profit of £12.4 million* in the same period on 2005.
Flybe.com agrees to acquire BA Connect
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Flybe.com agrees to acquire BA Connect
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Flybe.com
News
Completion of acquisition by Flybe of BA connect.
05 March 2007
Flybe announces that it has completed the acquisition of BA Connect, the regional airline business of British Airways.
Flybe’s acquisition of BA Connect (which does not include BA Connect’s London City or Manchester / JFK routes) creates a business with over £500m in revenues and which will fly nearly 10 million passengers once the transition is complete. The airline will operate 152 routes, flying from 22 UK and 34 European airports with new routes to key European commercial centres including Paris, Düsseldorf, Frankfurt and Milan. Through the merger of these two networks, Flybe will become Europe’s largest regional airline with a network that has a unique balance between business and leisure passengers.
Flybe plans to increase its current commitment to invest $1.2bn in new aircraft to over $2Billion by increasing the fleet to over 80 Bombardier Q400 and Embraer 195 aircraft by 2010. Flybe plans to retire the BA Connect fleet of 50 seat jet aircraft as soon as possible to drive maximum fleet efficiency. Flybe will have one of the youngest and most environmentally sensitive fleets in the world. In line with its environment policy Flybe will by then have reduced fuel consumption by over 50% per seat.
The deal has been structured to ensure Flybe is protected financially during the transition period with sufficient funding to cover the inefficiencies of operating 50 seat jets and a degree of protection over future values of these aircraft until they are retired. To achieve this BA is providing Flybe with cash funding of £96m.
Additionally BA is providing Flybe with Commercial support by entering into a one way codeshare agreement on all previous BA Connect routes, allowing for a smooth consumer transition to the Flybe brand.
As part of this acquisition, British Airways will receive a 15% interest in Flybe.
The immediate priority for Flybe will be to ensure that the transition is managed effectively and once this has been achieved, it remains the Groups intention to seek an IPO at the appropriate time.
Commenting on the acquisition, Jim French, Chairman and Chief Executive of Flybe, said:
“This is a proud day for Flybe, now Europe’s largest regional airline. The acquisition of BA Connect gives us critical mass across our domestic and European city markets and, with valuable slots at congested European airports, brings our growth plans forward by two years. Flybe is now firmly established as one of the UK’s largest airlines.
“Flybe is above all a regional airline and the new routes this acquisition brings to our network reinforces our commitment to serving the whole of the UK. We are playing our part in supporting the regional economies of the UK in line with the Government’s own ambitions.
“This is fantastic news for air travellers across the UK and Europe where more consumers will now be able to benefit from Flybe’s efficient and friendly service, all at a price which provides outstanding value. Millions of BA Connect travellers will now benefit from increased service and frequency at substantially lower prices whilst flying on the most environmentally friendly aircraft available in the Regional Air Travel maket..
Flybe will employ over 3500 staff in the new combined business. We are confident the new airline will offer exciting and continued career opportunities. During the last four months Flybe has worked closely with all Unions and Staff Associations to ensure that all staff would be working on the same terms and conditions from the commencement of the new, combined business.
We are all looking forward to working together to ensure Flybe will be a success.
News
Completion of acquisition by Flybe of BA connect.
05 March 2007
Flybe announces that it has completed the acquisition of BA Connect, the regional airline business of British Airways.
Flybe’s acquisition of BA Connect (which does not include BA Connect’s London City or Manchester / JFK routes) creates a business with over £500m in revenues and which will fly nearly 10 million passengers once the transition is complete. The airline will operate 152 routes, flying from 22 UK and 34 European airports with new routes to key European commercial centres including Paris, Düsseldorf, Frankfurt and Milan. Through the merger of these two networks, Flybe will become Europe’s largest regional airline with a network that has a unique balance between business and leisure passengers.
Flybe plans to increase its current commitment to invest $1.2bn in new aircraft to over $2Billion by increasing the fleet to over 80 Bombardier Q400 and Embraer 195 aircraft by 2010. Flybe plans to retire the BA Connect fleet of 50 seat jet aircraft as soon as possible to drive maximum fleet efficiency. Flybe will have one of the youngest and most environmentally sensitive fleets in the world. In line with its environment policy Flybe will by then have reduced fuel consumption by over 50% per seat.
The deal has been structured to ensure Flybe is protected financially during the transition period with sufficient funding to cover the inefficiencies of operating 50 seat jets and a degree of protection over future values of these aircraft until they are retired. To achieve this BA is providing Flybe with cash funding of £96m.
Additionally BA is providing Flybe with Commercial support by entering into a one way codeshare agreement on all previous BA Connect routes, allowing for a smooth consumer transition to the Flybe brand.
As part of this acquisition, British Airways will receive a 15% interest in Flybe.
The immediate priority for Flybe will be to ensure that the transition is managed effectively and once this has been achieved, it remains the Groups intention to seek an IPO at the appropriate time.
Commenting on the acquisition, Jim French, Chairman and Chief Executive of Flybe, said:
“This is a proud day for Flybe, now Europe’s largest regional airline. The acquisition of BA Connect gives us critical mass across our domestic and European city markets and, with valuable slots at congested European airports, brings our growth plans forward by two years. Flybe is now firmly established as one of the UK’s largest airlines.
“Flybe is above all a regional airline and the new routes this acquisition brings to our network reinforces our commitment to serving the whole of the UK. We are playing our part in supporting the regional economies of the UK in line with the Government’s own ambitions.
“This is fantastic news for air travellers across the UK and Europe where more consumers will now be able to benefit from Flybe’s efficient and friendly service, all at a price which provides outstanding value. Millions of BA Connect travellers will now benefit from increased service and frequency at substantially lower prices whilst flying on the most environmentally friendly aircraft available in the Regional Air Travel maket..
Flybe will employ over 3500 staff in the new combined business. We are confident the new airline will offer exciting and continued career opportunities. During the last four months Flybe has worked closely with all Unions and Staff Associations to ensure that all staff would be working on the same terms and conditions from the commencement of the new, combined business.
We are all looking forward to working together to ensure Flybe will be a success.
' Fiat Justita'