Flybe anger as BA writes down stake value to £30m

By DAILY MAIL REPORTER
Updated:

An extraordinary row is brewing between privately-owned airline Flybe and British Airways after the flag carrier wrote down the value of its stake in the low-cost minnow by more than 30 per cent. 

The move riled Flybe, which last night hit back saying it disagreed with the decision.

It also claimed it would make a profit this year, and had cash reserves of £57million.

It said: 'Flybe notes with surprise that BA has chosen to impair the value Flybe places on record that it and its advisors disagree with BA's decision to impair its shareholding.'

Fly away: Flybe is angry at BA for downgrading the value of its stake

Fly away: Flybe is angry at BA for downgrading the value of its stake

BA, which last week posted a record £401million annual loss, had cut £13million from the value of its 15 per cent investment and now thinks the stake is worth £30million. 

A spokesman for BA (up 2.3p at 159.3p) shrugged off Flybe's remarks.

He added: 'Despite the fact that Flybe's revenue is growing and they expect to announce a profit, our review highlighted a lower rate of forecast revenue and earnings growth than previously expected.'

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