Virgin Atlantic and Stobart Group have swooped on regional airline Flybe in a £2.2 million deal which will see the creation of a new airline group.
The companies, in conjunction with Cyrus Capital Partners, agreed an offer of 1p per share for Flybe, which put itself up for sale in November.
The price represents a significant markdown on Flybe’s Thursday closing price of 16.38p.
Shares in the airline fell as low as 1.2p yesterday morning following the announcement.
Under the plans, the airline will be combined with Stobart Air in a joint venture called Connect Airways.
Cyrus will own 40% of the new company, while Virgin and Stobart will take 30% apiece.
The three companies have committed to make a £20m bridge available to support Flybe’s current operations, while an additional £80m will be provided to the combined group.
Flybe chief executive Christine Ourmieres-Widener said the firm had been forced to seek a buyer due to higher fuel costs, currency fluctuations and Brexit uncertainty.
She added: “At the same time, Flybe suffered from a number of legacy issues that are being addressed but are still adversely affecting cashflows.
“By combining to form a larger, stronger group, we will be better placed to withstand these pressures.
“We aim to provide an even better service to our customers and secure the future for our people.”
The airline operates the most flights of any out of Aberdeen International Airport, offering journeys between the Granite City and airports including London Heathrow, London City, Manchester, Birmingham and Belfast, plus Stavanger in Norway under a partnership with Eastern Airways.
Aberdeen’s airport suffered a blow late last year when aviation giant easyJet announced it would be stopping flights between the city and London Gatwick.
The airline currently flies twice a day between the two locations from Sunday to Friday, with one flight operating in each direction on Sundays.
However, the airline last month announced that flights between the two destinations would be cancelled as of February 8.
Aberdeen International Airport said it was “disappointed” in the decision at the time it was announced last month.