Flybe float is cleared for takeoff

By RUPERT STEINER FOR THE DAILY MAIL
Updated:

 

Britain's biggest domestic airline Flybe is to announce plans for a £200m listing on the London Stock Exchange later this week.

Flybe airplane

Float: Flybe prepares for takeoff on London market

The firm, which has carved a niche operating short-hop flights between major cities in the UK, is expected to float around 25% of the business.

It is a brave move at a time when a raft of other firms have been forced to head for the emergency exit and pull their floats at the last minute.

Turbulent markets have seen fashion retailer New Look postpone its float along with theme park operator Merlin Entertainments, and bookings giant Travelport.

Flybe is one of only three major european airlines to have reported profits throughout the recession and will use the cash raised to help fund an acquisitions drive.

It is in talks to acquire a number of European rivals as it seeks to grow its footprint abroad.

Chief executive Jim French has previously claimed to be looking at acquisitions in Europe and is currently working on two deals, but has not specified which airlines have been approached.

He has ambitious plans to double in size and already operates 207 routes serving 13 countries.

Over the past year Flybe has gained market share based on providing a range of convenient routes.

The business, which has been trading in one form or another for the past 20 years, is 65%-owned by the family trust of the late industrialist and former Blackburn Rovers owner Jack Walker. British Airways owns 15%, with Flybe staff holding the remaining stake.

The airline, which uses small 85-seat aircraft, held a board meeting on Friday at which it was decided to press ahead with the listing.

• EasyJet has put its quarrel with founder and major shareholder Stelios Haji-Ioannou behind it and is set to pay a dividend for the first time when it announces full year figures tomorrow.

The budget airline has not managed to pay investors in its 10-year history as a public company but will announce the move as part of a broader strategy review.

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