Virgin Atlantic has confirmed that it’s currently “reviewing its options” with respect of Flybe, Europe’s largest regional carrier. Virgin has offered little detail on any proposal, but Flybe has confirmed that Virgin is “one of the parties” involved in talks to help salvage the struggling airline.
Due to on-going media speculation, Virgin Atlantic has confirmed that it is currently in communication with Flybe and is, as FlightGlobal states, “reviewing its options” with respect of Europe’s largest regional carrier.
Earlier this month, Flybe revealed that it was considering a potential sale of its business and has confirmed that Virgin is among “one of the parties” it is currently in communication with. A potential sale has been announced as part of a wider raft of review options to save the struggling carrier.
In October, Flybe shares plummeted and the carrier issued a profit warning. The airline has indicated that a lack of demand, a weak pound and spiking fuel prices have taken their toll on its operations. According to the BBC, “it now expects a full-year pre-tax loss of £22m ($28.1m).”
Offering her comments to the outlet, Christine Ourmieres-Widener, Flybe’s chief executive said, “We are reviewing further capacity and cost-saving measures. Stronger cost discipline is starting to have a positive impact across the business, but we aim to do more in the coming months, particularly against the headwinds of currency and fuel costs.”
“We continue to strengthen the underlying business and remain confident that our strategy will improve performance,” she added.
The finer details of these talks are still unknown, but the outlet reports that they could run the gamut from “enhanced commercial arrangements to a possible offer.” Virgin, however, has cautioned that an official offer has not yet been made.
In a statement quoted by the BBC, Virgin confirmed that it “has a trading and code-share relationship with Flybe and confirms that it is reviewing its options in respect of Flybe which range from enhanced commercial arrangements to a possible offer for Flybe.”