Left Menu
Development News Edition

UPDATE 2-UK's Stobart invests $12 mln in rescue of airline Flybe

UPDATE 2-UK's Stobart invests $12 mln in rescue of airline Flybe
Representative image Image Credit: ANI

Britain's Stobart Group will provide 9 million pounds ($11.8 million) in funding for Flybe as part of this week's government-backed rescue of the regional airline, the infrastructure group said on Thursday. Stobart said it had already invested 45 million pounds in Connect Airways, a consortium comprising the London-listed company, Cyrus Capital and Richard Branson's Virgin Atlantic, which acquired the assets of Flybe last year.

Stobart holds less than a one-third shareholding in the consortium, which has to date provided 110 million pounds in funds to Connect Airways. Flybe was rescued on Tuesday after the British government promised to review taxation of the industry and shareholders pledged more money to prevent its collapse. The agreement came a day after reports suggested it needed to raise new funds to survive through its quieter winter months.

As part of the plan, the government promised to review air passenger duty, a tax on flights departing from UK airports. Stobart, which is now separate from the Eddie Stobart haulage business, said delays in getting regulatory clearance for the consortium's plans to buy Flybe's assets, coupled with a number of other factors including legacy issues, had affected its turnaround plan for the airline.

"This resulted in a situation in which a further injection of funds is required to ensure continued flying," Stobart said in a statement. Roughly a year ago, Flybe was also approached by Stobart's former CEO Andrew Tinkler about an alternative financing proposal that challenged Connect's deal.

Flybe carries eight million passengers a year between 71 airports across the UK and Europe, according to its website. Since the rescue deal, details of which were not disclosed, British Airways owner IAG has filed a complaint with European Union regulators, calling it a "blatant misuse of public funds".

Virgin Atlantic and Cyrus Capital did not immediately respond to a Reuters request for comment on Thursday. ($1 = 0.7654 pounds)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.



SDG2030: Challenges of technological applications in advancing Global Goals

Application of contemporary and future information technologies may go milestones in advancing sustainable development goals SDGs provided the challenges are overcome and implementation is ensured....

Sustainable Fashion: UNDP wants you to wear properly to reduce Global Warming 

The experts have estimated that the amount of water used to prepare one pair of jeans and a T shirt is sufficient for a person to drink for 13 years....

World Economic Forum suggests 8 Education Models for Future Schools

In a report released on January 14, the World Economic Forum WEF has also picked two examples for each model from throughout the world. The WEF has emphasized that these schools systems would be crucial for Forth Industrial Revolution.&#160...

Bitterness before US-China Trade Deal on Wednesday

Both the superpowers are going to sign Phase 1 of the US-China Trade Deal on Wednesday. The stock markets are hovering on all time high but the questions are being raised on sustainability of the deal as spat continue between them on severa...


Latest News

Elderly, new mothers among protestors at Shaheen Bagh

The protest at Shaheen Bagh against the Citizenship Amendment Act CAA entered 35th day on Friday with protesters, mostly women, continuing to raise their voice against the amended law. The protestors included new mothers and elderly women....

Don't change something for sake of change: Raman on plan to tinker with Test format

Former India batsman and current head coach of the national womens team W V Raman on Friday said that the debate about the shortening of Test cricket to four days has no rationale behind it. I think if you are going to bring in any change t...

UPDATE 2-Brazil removes culture secretary after video echoes Goebbels

Brazils Culture Secretary Roberto Alvim was sacked on Friday after posting a video in which he appeared to copy a speech by Nazi propaganda chief Joseph Goebbels.The video, released on Thursday announcing national prizes to revitalize the a...

Ghaffari scalps six as Afghanistan shock South Africa by 7 wkts

Leg-spinner Shafiqullah Ghaffari wreaked havoc with deadly figures of 6 for 15 as Afghanistan shocked hosts South Africa by seven wickets in the opening game of the ICC U-19 World Cup here on Friday. Opting to bat, South Africa were bundled...

Give Feedback