UK regional airline Flybe could return to skies early next year

Flybe, the UK regional airline that went bankrupt in March, could be flying again early next year after being bought by a former shareholder. The carrier, which collapsed after loan talks with the government fell through as the coronavirus hit passenger numbers, has been sold to a company run by secretive hedge fund executive Lucien Farrell. The Exeter-based airline’s new owner will be Thyme Opco, affiliated with Farrell’s hedge fund Cyrus Capital, said administrator EY. “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,” said Thyme Opco. It added that the airline, which was the largest regional air carrier in the EU carrying about 8m passengers a year between 81 airports in the UK and Europe, will be downsized for its return. The airline will “start off smaller than before”, it said. EY’s Simon Edel said: “The restart of this iconic brand, which was once Europe’s largest regional airline, will provide a potentially significant boost to aviation jobs, regional connectivity and local economies.” Farrell, who has run Cyrus Capital in Europe for 15 years, has made a name as a canny investor in distressed debt, while carefully preserving his privacy. He has expanded Cyrus into a powerhouse of distressed investing, building up stakes in struggling UK household names such as the Co-operative Bank. Cyrus injected money into Flybe as part of a rescue spearheaded by Virgin Atlantic in 2019, but the company fell into administration when last-ditch rescue talks with the government for a GBP100m loan broke down in March. The failure of the rescue talks put more than 2,000 jobs at risk and raised uncertainty over the continuation of many regional air routes in the UK.<br/>