Exeter-based budget airline Flybe (FLYB) is hoping to return to level flight after announcing plans to raise £150m of fresh funds through a placing and open offer. The sum represents roughly double the group's current market value and marks the latest step in a year-long recovery programme that was prompted by a history of poor performance and high costs.
According to newly-arrived chief executive Saad Hammad - formerly easyJet's chief commercial officer - the funds will "significantly strengthen our balance sheet and provide capital to pursue our profitable growth strategy." That strategy will include such measures as cutting fleet ownership costs, investing to bolster productivity, and expanding both the group's branded and 'white label' operations (essentially, operating services on behalf of other airlines). Flybe has already made some progress in relieving its operational pressures - that included last May's disposal of departure slots at Gatwick for £20m and the deferred delivery of 16 new aircraft.
