Flybe in rebirth?
Cyrus Capital, who with Virgin Atlantic and Stobart Aviation bought up the remnants of the failing Flybe in order to save it, only to have Covid force into a permanent shut down, is trying to buy up the remaining assets of the airline in a effort to bring it back, albeit in a different from.
Cyrus are keeping quiet but they, along with their partners were more than a little miffed at the campaign waged by BA, RyanAir and easyJet to make sure Flybe went under – because they don’t like the idea of competition.
I cannot imagine Virgin isn’t also supportive of this move, because the whole point of buying Flybe and rebrand it as Virgin Connect, was to provide feeder passengers to the airlines Heathrow hub.
Covid isn’t going to last forever and prepping a startup to support passenger growth at a massively deflated Heathrow, as well as restore some of the connectivity around the UK regions, can only be seen as a positive long term strategy.
A lot of money in legal fees, debt support and rebranding work was already spent before Flybe died, why have all that go to waste?
There’s also a vast array of potential employees and out of work pilots, never mind a glut of unwanted aircraft to choose from. Now could be the best time to plan to launch a new airline from the grave of an old one.
MAX is back by years end
EASA has basically signed the aircraft off and the FAA is days away from doing the same thing. American airlines has announced that its MAX aircraft will be back in service by years end, and you can expect the others to follow at speed.
Why do they all want their MAX’s back so fast, or to take delivery of the ones they have waiting when money is tight?
The answer is simple. In many cases the 737NG’s left in service now will be chopped to make way for the far more economical MAX, and its day to day cash burn that’s at the core of airline problems right now. Their won’t be a mad rush, too many aircraft need modification work and each one is to be individually re-certified, but expect deliveries to gain pace quickly over the next few months. Airlines need to save money and they need to do that any way they can. Leased 737MAX’s with their 30% lower running costs are a major way to do that.