Flybe plane

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Flybe is being purchased for £2.2m by a consortium together with Virgin Atlantic and Stobart Group.

The sale comes after the Exeter-based airline’s warning in October that it might lose £22m due to poor demand, a weaker pound and better gas prices.

Shareholders in Flybe will obtain 1p a share, whereas the consortium, which additionally contains enterprise capital agency Cyrus, will inject £100m.

It’ll function underneath the Virgin Atlantic model.

Flybe shares closed on Thursday at 16.38p.

The shares had been buying and selling at greater than 30p earlier than the earnings warning, which sparked a downward spiral within the value.

The consortium, often called Join Airways, will initially lend £20m to Flybe to assist the on-going operations of the airline.

An additional £80m will likely be invested in Flybe, which describes itself as Europe’s largest regional airline.

Christine Ourmières-Widener, Flybe’s chief government, mentioned: “The trade is affected by greater gas prices, foreign money fluctuations and vital uncertainties offered by Brexit. We’ve got been affected by all of those components which have put stress on short-term monetary efficiency”.