Flybe has rejected a proposal from investors including a US airline and a hedge fund to replace its current takeover deal. In January Flybe accepted a 1p-a-share takeover from Connect Airways, a consortium including Virgin Atlantic and Stobart Air, involving a divestment of assets due by Friday Feb 22. The deal valued Flybe’s equity at GBP2.2m and included working capital of GBP20m. Mesa Airlines of Arizona and New York-based Bateleur Capital would make a capital injection of GBP65m at 4.5p a share. Flybe, which has drawn GBP15m in working capital from Connect, said: “It continues to regard the arrangements entered into with Connect Airways as being the only viable option available to the company which provides the security that the business needs to continue to trade successfully.” <br/>
unaligned
FlyDubai said Wednesday its revenues increased to US$1.7b in 2018, though the airline ended the year with a loss of $43.5m. The airline blamed fuel costs, rising interest rates and "unfavorable currency exchange movements" for the loss. It had made $1.5b in revenue in 2017, earning a narrow profit of $10m that year. "In line with expectations, 2018 was a challenging year, however we have continued to invest in our capacity and increased revenue," FlyDubai CE Ghaith al-Ghaith said. FlyDubai, which now has a code-share deal and tighter relationship with Emirates, flew 11m passengers last year, just slightly up from the 10.9m it flew in 2017. It has a fleet of single-aisle Boeing 737 Max aircraft and struck a deal with Boeing in Nov 2017 to purchase 225 Boeing 737 MAX 10 aircraft. <br/>
Southwest Airlines cancelled 440 flights across the Midwest, Ohio Valley and the Northeast Wednesday and saw many planes delayed amid an ongoing contract dispute with its mechanics union. An airline spokesperson said it canceled more than 350 flights in preparation for inclement weather. But it acknowledged that some of its fleet is out of service due to mechanical issues. The disruptions come as the carrier spars with the Aircraft Mechanics Fraternal Association over a new agreement. Another 471 Southwest flights have been delayed. COO Mike Van de Ven had strong words for the mechanics union saying, "AMFA has a history of work disruptions...We will be investigating this current disruption and exploring all possible remedies." <br/>
AirBaltic will end Boeing 737 operations in fall 2019, one year earlier than planned, accelerating its transition to an all-Airbus A220-300 fleet. AirBaltic currently has a fleet of 34 aircraft: 14 A220-300s, 6 Boeing 737-300s, 2 737-500s and 12 Bombardier Q400s. The airline phased out 3 737-500s in late 2018, leaving it with 8. Two of the remaining 737s are owned by airBaltic and the other 6 are leased. The Boeing aircraft were originally scheduled to leave the fleet at the end of 2020, but Feb 2 airBaltic said the phase-out had been brought forward by a year. AirBaltic has 50 A220-300s on firm order and options on another 30. So far, 14 of these have joined the fleet, with another 8 scheduled for delivery in 2019, followed by 12 in 2020 and 12 in 2021. <br/>
South Korean LCC Aero K aims to launch operations later this year if it wins approval during the govt’s upcoming selection process for start-up airlines. The govt is expected to approve at least 1 new airline from among several LCC applicants, with a decision due by the end of February. In addition to Aero K, the proposed LCCs include Air Premia, Air Philip and Fly Gangwon. A new cargo LCC has also applied for a license, but the govt is expected to consider that request separately from the passenger airlines. This is the second time Aero K has sought govt approval. The carrier’s first application was turned down in Dec 2017 because of regulators’ concerns about excess competition in the South Korean market. An application by Fly Gangwon was also rejected in 2017. <br/>