Regional airline Flybe, which collapsed in March, could restart its operations after former shareholder Thyme Opco acquired its remaining assets.
According to its new owner Thyme Opco, Flybe plans to "start off smaller than before" after it collapsed in March due to lack of cash at the onset of the coronavirus pandemic.
Prior to its demise, transported eight million passengers a year and operated about 40% of regional UK flights.
The Collapse of Flybe
The government announced back in January that it was coordinating with Flybe regarding its finances and exploring options for a rescue, adding that Flybe’s management and shareholders were setting the airline "on a recovery path."
However, in March, Flybe announced that it has grounded all flights as it entered administration following the lack of demand for flights due to the coronavirus outbreak. It also confirmed that its business had "ceased trading with immediate effect" in the UK.
In a statement, the airline told customers: "If you are due to fly with Flybe, please DO NOT TRAVEL TO THE AIRPORT unless you have arranged an alternative flight with another airline. Please note that Flybe is unfortunately not able to arrange alternative flights for passengers."
It added that its financial challenges had been "compounded by the outbreak of coronavirus which in the last few days has resulted in a significant impact on demand."
Founded in 1979, the Exeter-based budget carrier was at one point Europe’s largest independent regional airline, carrying 8 million passengers a year and operating more than 200 routes.
Rafael Schvartzman, the regional vice president for the International Air Transport Authority (IATA), pointed out that the collapse of Flybe showed the urgent need for governments to support airlines.
He said: "This development is proof that urgent action is required across Europe to protect air connectivity during a period of almost unprecedented crisis."
Flybe's acquisition by Thyme Opco
Thyme Opco, which is controlled by hedge fund executive Lucien Farrell, will acquire Flybe's brand, intellectual property, stock and equipment. A spokesman with Thyme Opco said: "We are extremely excited about the opportunity to relaunch Flybe."
"The airline is not only a well-known UK brand, it was also the largest regional air carrier in the EU, so while we plan to start off smaller than before, we expect to create valuable airline industry jobs, restore essential regional connectivity in the UK, and contribute to the recovery of a vital part of the country's economy."
Simon Edel, who works for Flybe's administrators EY, the acquisition would be welcomed by areas previously served by the airline.
Edel explained: "The restart of this iconic brand, which was once Europe's largest regional airline, will provide a potentially significant boost to aviation jobs, regional connectivity and local economies."
About Thyme Opco
Farrell manages New York hedge fund Cyrus Capital's operations in Europe and prior to Flybe's collapse, Cyus was actually a shareholder of Flybe, along with Sir Richard Branson's Virgin Atlantic.
Based on filings at Companies House, Thyme Opco is 51% owned by a company called Thyme Investco, which is 51% owned by Farrell. This gives the hedge fund executive overall voting control.
Cyrus Capital has $4 billion under management and owns a stake in Co-Op Bank in the UK.
