From http://www.businesstraveller.com
Flybe in talks over Gatwick slots!
Flybe has admitted that it is in talks with other airlines about selling its slots at Gatwick.
The regional airline did not confirm which carriers it was negotiating with, but it is believed that Easyjet is involved in the discussions.
Flybe, which has been forced to issue a succession of profit warnings over the last year, has 25 slots at the Sussex airport. The regional carrier is currently restructuring its struggling UK operation including the loss of 300 jobs.
Flybe said in a statement: “Flybe notes the recent speculation in the press. The board announces that it is in discussions with a number of parties which may or may not lead to a transaction regarding the exchange for compensation payment of the arrival and departure slots at Gatwick airport.
“Discussions are on-going and there can be no certainty as to whether any transaction will be forthcoming. A further announcement will be made as soon as appropriate.”
Last week, the carrier announced that passengers can now guarantee ticket prices on the airline’s website for up to 24 hours. The “Price Lock-Down” service allows customers to pay a fee to freeze any quoted fare at flybe.com for a day (see online news, May 10).
For more information, visit flybe.com.
Report by Rob Gill
By: cloud_9 - 23rd May 2013 at 18:50
Confirmed today…Flybe has sold 25 pairs of take-off and landing slots at Gatwick to easyJet for £20m.
From The Telegraph:
Flybe sells Gatwick slots to easyJet for £20m
The airline has issued five profit warnings since it listed in 2010 and recently embarked on a cost-cutting plan. It has reduced its workforce by 22pc to 2,140, which along with the other steps helped the airline save £30m in costs this year.
Flybe said it had decided to sell following a 102pc increase in slot charges over the past five years by the airport’s owners. Global Infrastructure Partners bought Gatwick for £1.46bn in October 2009.
“It is the view of the board that the increase in charges, combined with the penalistic levels of Air Passenger Duty imposed on UK domestic airlines by successive Governments, have resulted in Flybe’s services to and from Gatwick becoming unsustainable in the long-term,” the company said.
Full article:http://www.telegraph.co.uk/finance/newsbysector/transport/10075367/Flybe-sells-Gatwick-slots-to-easyJet-for-20m.html
By: Matt-100 - 17th May 2013 at 19:25
I think Flybe is one of those companies who grew too far and too fast, particularly in the low yielding leisure market. It was great during the boom years, but come recession and suddenly who wants to fly from Southampton to La Rochelle (especially at the prices they charge)?
It doesn’t come as much of a surprise they’re now cutting Gatwick, you can’t justify operating small regional aircraft at an airport where the costs to operate are so high.
By: cloud_9 - 17th May 2013 at 15:46
Well all I know is that slot trading is a common practice amongst airlines, it all depends on how lucrative the slots are.
A recent example though, Etihad Airways bought Jet Airways’s x3 pairs of slots at LHR for $70 million back in Feb. 9W still operate on the same routes with their aircraft, and the $70m paid by EY was part of a $220m deal in order to create and strengthen the partnership between the two carriers.
As for LGW, I’m sure the same thing applies however I’m guessing that the slots are not worth as much as at LHR.
The thing which interests me though is that Flybe are having to consider selling slots in order to raise finance…are things really that bad?!
By: atr42 - 16th May 2013 at 22:54
I think I read somewhere else that they were talking about raising £20m. Are slots still worth that much these days in times of low growth and cut throat prices?
Sign In
May 16, 2013 at 9:09 pm