Regional airline Flybe in talks to sell off Gatwick airport slots

Monday 13 May 2013

Struggling regional airline Flybe is selling off runway slots at London’s Gatwick airport to raise funds.

The potential sell-off of 25 take off and landing times, could raise up to £20m.

Exeter-based Flybe’s shares soared more than 20 per cent yesterday (mon) on hopes a deal will be found.

The airline said it was talking to several parties – reported to include easyjet.

A deal would boost easyjet’s presence in the London market and help fuel its booming growth.

Since floating on the stockmarket four years ago, Flybe has been hit by rising fuel costs, falling passenger numbers and higher airport duty.

It is axing around 10 per cent of its 3,000-strong UK workforce to cut costs by at least £35 million and is also reviewing its network of 13 UK bases, which include Bristol, Cardiff, Doncaster, Edinburgh and East Midlands.

Selling all the slots would see Flybe quit its main London hub, although it also flies a small number of planes from Luton airport.

Flybe flies to destinations including Belfast, Edinburgh, Glasgow, Guernsey, Jersey, Newquay and Paris from Gatwick.

Flybe said: ‘Discussions are ongoing and there can be no certainty as to whether any transaction will be forthcoming.’

Analysts at Espirito Santo said: ‘Realising value from its Gatwick slot portfolio could help Flybe reinforce its balance sheet.’

Flybe is expected to post another year of losses for the year to the end of March.

Easyjet declined to comment.

http://metro.co.uk/2013/05/13/regional-airline-flybe-in-talks-to-sell-off-gatwick-airport-slots-3756827/