Prospects for Flybe as administrators agree sale to Cyrus Capital

Collapsed regional airline Flybe will restart operations next year after its administrators agreed for it to be sold to Thyme Opco Ltd, a firm controlled by hedge fund Cyrus Capital.

Flybe ceased operations in early March this year and has since been under the administration of accountancy firm EY. 

Administrators from EY said they had agreed to a sale of Flybe’s business and assets, including the brand, intellectual property, stock and equipment, to Thyme Opco.

Prior to its collapse in March, Flybe was Europe’s largest regional airline, carrying nine million passengers a year and running 40% of the UK’s domestic flights.

The deal with Thyme Opco is expected to allow Flybe’s business “to re-start operations as a regional airline in the UK under the Flybe brand in early 2021”, according to EY.

A Thyme Opco spokesperson said the company was “extremely excited about the opportunity to relaunch Flybe”, but was planning to “start off smaller than before” when it revives the airline. 

“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”, they added. 

Airline stocks rose on the back of the announcement, with IAG up 1.4%, Easyjet up 3%, and Ryanair up 0.8%.