Less than two weeks after Flybe entered administration, it has emerged there are two major parties interested in purchasing the defunct airline. Prospective buyers Air France-KLM Group and Lufthansa Group are particularly interested in Flybe's lucrative airport slots.

Air France-KLM or Lufthansa could buy Flybe

As first reported by The Telegraph, both airline groups are reportedly in talks to purchase the folded regional carrier after it was placed into administration and all operations ceased on January 28th. Lufthansa Group and Air France-KLM Group are negotiating with administrators from Interpath Advisory, which is overseeing the process, in a deal that could see the ill-fated UK airline resurrected yet again.

A spokesperson for Flybe's joint administrators said,

"The administrators remain in active discussions with credible parties. Additionally, there are a range of important stakeholders who remain supportive of the process."

Other parties, including British Airways, the UK Civil Aviation Authority (CAA) and leasing firm Nordic Aviation Capital are also reportedly supportive of finding a new Flybe buyer. Prior to its collapse, the airline operated with a fleet of eight Dash 8 Q400 aircraft on lease from Nordic Aviation Capital​​​​​​.

Are the slots worth it?

It's clear that Flybe's valuable airport slots - particularly the seven pairs of take-off and landing slots at London Heathrow Airport (LHR) and five pairs at Amsterdam Schiphol Airport (AMS) - are the big prize for a prospective buyer. Slots at busy and competitive airports like LHR and AMS can sell for millions - the highest ever paid for a single pair of slots was £60 million ($71.8 million) by Oman Air at LHR in 2016.

Following the collapse of Thomas Cook and Monarch Airlines, a precedent was set that enabled airlines to sell off airport slots as part of the administration process. However, Flybe's slots are believed to be "remedy slots" which can't be sold off in the same way - therefore, any potential buyer would have to purchase the entire company and take on the airline's liabilities if it wants to get its hands on the airport slots.

Flybe's collapse led to almost 300 job losses and around 75,000 passengers were affected as the airline racked up losses of approximately $5 million per month. A source told The Telegraph,

"If people want the slots, they need to buy the business. It may yet prove too hard."

Should a deal to buy Flybe not materialize, its slots would end up being returned to airport authorities and re-allocated in due time. The slot pairings were awarded to Flybe by competition regulators in 2012 after British Airways purchased rival regional carrier British Midland.

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Only days to agree a deal?

As it is still early days, it isn't clear if a potential Flybe third-coming would be similar to its first two iterations or if the brand would return to the skies at all. The resurrected Flybe 2.0 had some major differences from the original Flybe, which went bust in 2020. The new airline realigned its base to Birmingham and operated with a significantly smaller network and fleet.

According to The Telegraph, Flybe administrators may only have a matter of days to thrash out a deal to avoid the airline being wound up - it remains to be seen what Air France-KLM or Lufthansa have in mind for the regional carrier.

Would you want to see Flybe taking to the skies again? Which airline group do you think is the most suitable buyer? Let us know your insights in the comments.

Source: The Telegraph