It is finally done! AfterFlybe will soon become a great asset for Virgin Atlantic as they battle British Airways for UK dominance.
Flybe’s extensive network will remain in operation. According to the airline, all flights will continue to operate as normal under the Flybe name, for now.
Virgin Atlantic will be using Flybe to connect passengers between long-haul and regional destinations. Virgin Atlantic does not have a strong share of domestic passengers given their mainly long-haul operations. This new acquisition is expected to give them a major boost.
As part of this acquisition, Virgin Atlantic will be rebranding Flybe.
Many will recall that Virgin Atlantic once attempted to set up their own domestic carrier as Little Red. Eccentric founder of Virgin Atlantic, Richard Branson, saw the monopoly British Airways had in the domestic market.
Little Red ended up being a failure and at one point had the worst load figures in the aviation world. This led Little Red to become a complete and total lossmaker. With less than 40% load on flights, it was only time until Little Red was shut down. After two years of operating losses, Virgin Atlantic finally shut Little Red down.
Virgin Atlantic, however, still had their eye on the UK domestic market. After all, British Airways’ monopoly gave them an upper leg on connecting passengers to and from the UK. There was, however, Flybe.
When Flybe went up for sale, Virgin Atlantic jumped on the opportunity and set up a consortium to purchase the airline. The purchase was closed on Thursday, February 21st. Now, Virgin Atlantic looks to make Flybe a tremendous asset.
Flybe has been marked by a difficult few years after an aggressive expansion plan that ended in losses almost up to £20 million.
By the end of 2018, Flybe had put itself up for sale. Virgin Atlantic was one of the first parties that took a major interest in Flybe.
Flybe did see some additional bids coming from British Airways and Andrew Tinkler (Flybe’s second-largest shareholder) backed Mesa Air. Andrew Tinkler was formerly an executive at Stobart Air, which was one of the parties in the Connect Airways consortium that bid for Flybe. He was removed from his position in 2017 and initiated some difficult legal proceedings which he lost.
Ultimately, Virgin Atlantic’s Connect Airways consortium won out and it looks like they will have Flybe’s connecting network to themselves.
This is a major step forward as Virgin Atlantic seeks to gain a greater share of Britain’s market. British Airways is currently a huge player with regional connections in the UK and now it looks like Virgin Atlantic is becoming a force to reckon with.
We’ll keep you updated in case of any drastic turn of events. However, we’re hopeful that Flybe can keep flying and this deal stays intact.
What are your thoughts? Are you sad to see Flybe go? Let us know in the comments below!