Phoenix from the ashes: the rise, fall, and rebirth of Flybe
It’s been a bumpy ride.
From humble beginnings as Jersey European Airways to becoming Europe’s largest independent carrier, followed by downturn, collapse, and now rebirth, Flybe’s 40-year flight path has been anything but direct.
After becoming Europe’s biggest regional airline in the middle of the 2000s, the end of the 2010s saw the carrier plunged into turbulence that eventually brought it crashing back to earth.
But now it’s back, with Cyrus Capital-backed Thyme Opco today completing its acquisition of the firm from administration.
Here’s a brief recap of how the last 15 years played out.
November 2006 – Flybe buys BA Connect
Welcome to the big time. The deal, which saw BA take a 15 per cent stake in Flybe, made the carrier Europe’s largest regional airline with a vastly increased network.
December 2010 – Floating away
Flybe goes public, with shares priced at 295p, giving the company a valuation of £215m. Investors climbed aboard on the first day of trading, sending shares up 16 per cent. As a result of the raise, Flybe spends £66m to fund its fleet expansion.
June 2014 – Up on its own
After eight years, BA decides to sell the remainder of its stake in the carrier. A series of rights issues meant it owned just 5.0 per cent of the firm.
November 2016 – Destination Dusseldorf
With expansion still the watchword, Flybe opens its first European base at Dusseldorf airport, with flights starting in February 2017.
February 2018 – First takeover bid
However, it did not take long for trouble to set in. At the beginning of 2018, a dire year for the carrier sees franchise partner Stobart Air attempt a takeover bid for the firm, causing shares to soar. But Flybe rejects the bid, with shares plunging as a result.
January 2019 – Second time lucky
But the writing was on the wall. After another poor year, Stobart tries again, this time in partnership with Sir Richard Branson’s Virgin Atlantic.
Their consortium – Connect Airways – makes a cut price bid of £2.8m for the airline. A number of other bidders, including former Stobart boss Andrew Tinkler, come calling, but are rejected.
The Connect bid is accepted and Flybe is sold in February. It is announced that the carrier will be known as Virgin Connect from 2020.
January 2020 – Mayday
However, the honeymoon doesn’t last long. Within a year, the carrier is reporting new financial difficulties, leaving bosses to appeal to the UK government for a bailout.
In February it emerges that ministers are mulling an £100m loan to keep it airborne, prompting outrage from parts of the industry.
But as it turns out, ministers have something else on their mind…
March 2020 – Crash landing
As the severity of the Covid crisis becomes apparent, the government rejects the loan bid. Virgin and Stobart also wash their hands of the carrier, blaming the crisis.
After 41 years in operation, Flybe files for administration on 5 March.
October 2020 – Rebirth
But a little over six months later, it emerges that US private equity firm Cyrus Capital – through new venture Thyme Opco – has agreed to buy the carrier out of administration.
Fast forward six months, and the deal completes. The newly reborn Flybe says it plans to make its first flights in the summer, barring any further Covid disruption.