Flybe ‘up for offer’ as it faces £22m. annual pre-tax losses

The Exeter-based airline, which is one of the island’s main operators, is facing annual pre-tax losses of around £22m. and its value – £25m. – has diminished far below the last time it was floated on the stock exchange – £215m. – in 2010.

That has prompted the airline’s board to put the business ‘up for offer’ while it ‘comprehensively reviews’ ways to balance the books.

A spokesman for franchise partner Blue Islands said the locally-owned airline remained ‘fully committed to serving the Channel Islands’.

‘While we do not envisage a change to current arrangements, Blue Islands could market its scheduled services independently should it be necessary to do so,’ he said.

‘We continue to enjoy a good relationship with Flybe and will watch with interest the way in which this potential sale evolves.’

Aurigny’s shareholder, States Trading Assets, said any opportunities that arose from Flybe’s situation could be explored further if they have commercial benefit.

‘In terms of acting as an economic enabler, Aurigny’s principal and primary role is to operate the Gatwick route and, subject to the outcome of the PSO process, the Alderney routes,’ said STA’s Alastair Ford.

‘There is no absolute requirement to operate any other routes beyond [those] routes.

‘Decisions on other services are the responsibility of Aurigny’s board of directors, taking into account the requirement to break even.

‘Nevertheless, one of the principal purposes of Aurigny is to maintain and, where possible, improve the island’s connectivity.

‘If new opportunities do arise which, after taking account of commercial considerations, can help contribute towards these various objectives, then the Aurigny board is well-placed to make those decisions.’

Flybe chief executive officer Christine Ourmieres-Widener said the airline was experiencing problems that many regional airlines were facing.

‘There has been a recent softening in growth in the short-haul market, as well as continued headwinds from higher fuel and currency costs.

‘We are responding to this by reviewing every aspect of our business, especially further capacity reduction, cash management and cost savings.

‘This is already starting to have a positive impact, as shown by the improved first half adjusted profit before tax.’

‘However, we must do more in the coming months. We remain confident in the vital role that Flybe plays in UK connectivity.’