UK regional operator Flybe Group has disclosed that it is considering a sale of the business as part of a wide-ranging review of strategic options.
It is holding talks with an unspecified number of operators about a potential sale.
The company states that, as part of this “comprehensive” review, it is looking at capacity and cost-saving measures, and initiatives to strengthen the balance sheet and preserve cash.
Flybe says the move is intended to address “current challenges” facing the airline industry and “maximise value” for shareholders.
Interested parties, it adds, should put their proposal to financial adviser Evercore, which is supporting the review process.
“It is currently expected that any party interested in participating in the formal sale process will, at the appropriate time, enter into a non-disclosure agreement with Flybe on terms satisfactory to the board of Flybe,” says the carrier group.
Flybe states that it would then be prepared to provide information on its business to such parties.
“There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made,” the company adds.
Flybe unveiled the plan as it disclosed a halving of pre-tax profits to £7.4 million over the first half of the year.
It says this reflects £6.6 million of non-cash revaluation losses on US dollar aircraft loans.
Flybe states that its “adjusted” pre-tax profit increased to £14 million from a previous figure of £9.4 million. Excluding the effect of an onerous Embraer 195 lease, it adds, the adjusted pre-tax profit of £9.9 million is “slightly ahead” of guidance given in October.
Revenues for the company over the six months to 30 September were down by 2.4% to £409 million, following a 9% reduction in capacity.
Source: Cirium Dashboard