Thursday, 17 January 2019

Europe’s largest regional airline is bought for the price of a West London flat

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If a good compromise is one where all parties are left dissatisfied, this week’s bailout of Flybe by Connect Airways—a consortium led by Virgin Atlantic, Britain’s second-largest airline—must be a very good deal indeed. Bosses of the regional airline, which is Europe’s largest, have the ignominy of selling a company once worth a quarter of a billion pounds for just £2.8m ($3.6m). Investors will be paid just 1p for shares they might have purchased for £3.41 when the airline was listed on the London Stock Exchange eight years ago. And the consortium—including Stobart Group, which owns an Irish regional airline—inherits £82m of debt and relatively few assets for its trouble...