Is Flybe on its way back to the skies?

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• J says:

  30 Mar30 March 11:17

  Flybe may not have been profitable in itself but there’s economic value in regional connectivity. If you leave everything to the market there’ll be gaps – easyJet/Ryanair have no interest in adding any smaller regional aircraft to their fleet. It makes sense to offer govt aid to Loganair and Eastern and in the long term it might offer better value to bring them together. All this talk of state aid being a throwback to the 70s is absurd, if it wasn’t for government subsidises there wouldn’t be a railway network. And every major, successful airline in the world right now is taking state aid or will be soon.

  • ADS says:

    30 Mar30 March 17:20

    surely a much easier solution would be offer more Public Service Obligation grants – and let FR/EZ/whoever bid ?

• Aston100 says:

  30 Mar30 March 14:04

  Woah, is that genuine?

  • The Original David says:

    30 Mar30 March 16:01

    Does Stelios not have any lawyers? That letter looks like it was bashed out after a couple of pints…

    • David says:

      30 Mar30 March 19:14

      I thought it was fine.
      And well written for it’s wide audience.

• ChrisC says:

  30 Mar30 March 14:15

  I wonder how many people who are against taxpayer suport for say flybe on the basis of enhancing regional connectivity are also against tax payer support for the train operating companies of approx £500m per year (support for network rail and HS2 etc is over and above that)

  • mvcvz says:

    30 Mar30 March 14:22

    I am.

    • J says:

      30 Mar30 March 16:26

      Do you live in the South East?

      • Nick says:

        30 Mar30 March 20:58

        Are you also in favour of removing the billions of pounds in taxpayer subsidies for the road network as well?

        • mvcvz says:

          30 Mar30 March 21:20

          Nowhere near the southeast. I have the misfortune to travel to London and back by train for work 2-3 times a year. Despite being in first class, it’s invariably a hideous experience.

          As for roads, if all the tax I’ve paid in fuel duty, road fund licence etc over the years had been used to support the road network, then no taxpayer subsidies would be required.

        • J says:

          30 Mar30 March 22:46

          @mvcvz not true despite what you have read in the Sun. The motorist has been heavily subsidised over the years and even now vehicle tax and duties do not take account of all of the costs to society. So you don’t like trains and you don’t see the point in regional flights but you like your car. Got it.

        • mvcvz says:

          30 Mar30 March 23:19

          I love my car thanks. Even though I’ve been able to drive just 12 miles in the new one I bought a fortnight ago due to current lockdown. Just pleased I can work from home. I do not, however, accept for one moment hat the motorist has been subsided to a higher level than train/regional flight users.

          I never said I didn’t see the value of regional airlines, so please don’t put words in my mouth. I just don’t subscribe to the “private profits, public purse losses” version of capitalism.

          And please also don’t make inferences as to my newspaper preferences. Dickhead.

• Lady London says:

  30 Mar30 March 15:24

  So the largest shareholder wants a rights issue, which he easily has deep pockets to meet, and thus diluting other shareholders?

  I had reached the conclusion equity was still a good bet given the sound underlying business and was planning to resist any suggestion to take bonds however excellently paying they might be. Seems like SHI has the same faith in Easy. I wonder which Corporate Finance houses are behind each side. Or have I misunderstood?

  • Rob says:

    30 Mar30 March 16:42

    The other shareholders are mainly pension funds so their pockets are deep enough. His biggest concern seems to be seeing his stake forcibly diluted if the Government takes a stake as part of any bailout.

    easyJet is acting like it is a lot weaker than its published numbers suggest, which might be driven by the Airbus payments.

    • Is your body beach ready? says:

      30 Mar30 March 17:47

      Stelios is smart and correct to focus on incompetent (or worse) Directors

    • Lady London says:

      30 Mar30 March 19:19

      Clever, though.

      I was not clever enough to see as you pointed out Rob, that it was a defensive parry against any deal that would see govt taking shares.

      The Airbus thing is good for a go because every other airline will be doing it. The hint about corruption – not even subtle but stopping short of libel is just to get their attention.

      Gives me confidence in that company coming out better than most.

• Chu says:

  31 Mar31 March 09:27

  How well run are government owned airlines normally? I’m not talking about the Middle East where they have unlimited oil money to sink into a passion project of like semi-Singapore Air where the country has enough savings to back it up.
  For a place like the UK, I find it hard when a deficit seems likely for the coming decade and any significant investment would likely be barred.
  RBS was nationalised for a while and I can’t see that it’s improved the “quality” of the bank or the customer experience.
  I’m all for saving jobs but would love to hear some 2 cents from people who know more than me about whether they could make companies better.
  My gut feel is…a U-Turn is happening because ultimately, they’re going to have to bail out the rest of the industry.

  • Rob says:

    31 Mar31 March 10:02

    Finnair is 55% (?) Government owned and they have done exceptionally well in recent years – new A350 fleet, carving out a distinctive niche into Asia etc.

    On the other hand, TAP Portugal has been transformed since it was privatised in 2016 with an entirely new long-haul fleet lauched in the last 12 months and some very aggressive pricing as we’ve covered. Iberia has also been transformed since IAG took it over.

    All of the US airlines are technically underwritten by the Government.

    • Chu says:

      31 Mar31 March 10:57

      Thanks Rob,

      So it is a bit of a mixed bag in terms of whether the quality for the customers actually work.
      Finland isn’t exactly a poor country and just worries me that it’ll just become another elephant in the room or ammo for politics later down the line.

      It is interesting though, and if more become government owned, it’ll also be interesting whether they’d end up consolidating and merging the brands.

• Chu says:

  31 Mar31 March 13:24

  Starting some new discussion?
  I’m an Aussie that works in the UK – and my family in Sydney have been sharing the news about people being quarantined in the hotels on state funds (Hilton, Swiss, etc) – they’re obviously not bad hard products but it’s also true that they’re not getting the typically paid 5 star service (let alone being let out).
  A lot of those being kept in isolation are complaining about the facilities and also food, no doubt they are not excellent food being supplied, but what I’m trying to get a better sense of is whether majority of these people have the right to complain. Are most people being sent home and needing quarantine:
  – People who refuse to cancel their holiday plans, and then are stuck?
  – Geniune people helping others and have been stuck?
  – Stuck on a cruise ship and went on the cruise ship knowing about tlhe coronavirus?
  I know the same is happening for people being flown back to the UK as well – I’m not sure whether to feel sympathy for them or not given that most sensible people have cancelled their travel plans at their own cost prior to this.

  Also, a fun note, if you’re stuck at the Hilton, do you think you get the eligible nights benefits? 😛

  Stay safe everyone.

• Wilbur says:

  1 Apr1 April 05:53

  If they do take over the airline will all my flights be re-instated. Lost hundreds of pounds. I have to commute to and from my place of work. No other airline has picked up the routes. I work in construction, at the moment work on to very important nhs projects and it is very difficult to get back home to my family.

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