The board of flybe. (2002) (Exeter) has announced it is considering selling the carrier as one of the options available to it under a strategic restructuring plan.
In a filing to the London Stock Exchange on Wednesday, November 14, the carrier confirmed that it had appointed Evercore Partners International as its financial adviser to assist with the strategic review.
As it stands, flybe said it is in discussions "with a number of strategic operators about a potential sale of the company".
Aside from the disposal of the airline, the board says it also has the option of effecting further capacity and cost cuts as well as initiatives to strengthen its balance sheet and preserve cash resources.
“There has been a recent softening in growth in the short-haul market, as well as continued headwinds from higher fuel and currency costs," Flybe’s chief executive, Christine Ourmières-Widener, said. “We are responding to this by reviewing every aspect of our business. We remain confident in the vital role that Flybe plays in UK connectivity.”
Flybe said in its 1H2018/19 financials that its pre-tax profits for the six months to September 30 had fallen by 54% to GBP7.4 million (USD9.58 million), on revenues of GBP419.2 million (USD543 million) down 2.4% year-on-year.
The UK regional carrier operates a fleet of 76 aircraft – fifty-four Dash 8-400s, six E195s, eleven E175s, and two ATR72-500s and five -600s.
According to the financial report, the E195s are expected to exit the fleet in 2020/21 while four more E175s will join it in 2019/20. In terms of the Q400s, flybe will exit four aircraft by 2020/21 while renegotiating leases on the rest.
