Flybe faces permanent grounding after rescue talks with bidders stall

Published

2 years ago

February 15, 2023

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Flybe, the regional airline which collapsed into administration last month, is to be wound down after attempts to find a rescuer for the business were abandoned.

Sky News has learnt that Interpath Advisory, the insolvency practitioner, has terminated talks with potential buyers, which were reported to have included Air France-KLM and the German carrier Lufthansa.

Flybe‘s 45 remaining employees were being informed of the decision on Wednesday.

Sources close to the process said “use it or lose it” rules relating to take-off and landing slots had been a contributing factor in making a sale of the business too difficult to execute.

Flybe relaunched less than a year ago after being bought out of administration by Cyrus Capital, a little-known investor with limited experience of owning aviation businesses.

The company, which was listed on the London Stock Exchange until 2019, when it was sold to a Virgin Atlantic Airways-backed venture, was once among Europe’s biggest regional airlines.

Headquartered in Exeter, Flybe connected passengers flying from and between underserved UK destinations in the south-west, Midlands and Scotland.

Its first collapse into insolvency took place as the pandemic took hold early in 2020.

Flybe had been operating flights to and from airports including Heathrow and Amsterdam’s Schiphol until its latest brush with administration.

Last month’s collapse affected thousands of passengers, although under Cyrus Capital’s ownership, Flybe was a far smaller business than it had been in 2020.

More than 200 employees were made redundant within hours of Interpath’s appointment.

One insider said a sale had also partly been stymied by complexities relating to European authorities’ attitude to a temporary operating licence for Flybe that would have been issued by the UK’s Civil Aviation Authority.

The company is now expected to be wound down, which will involve discussions between Interpath and aircraft lessors.

A spokesperson for the administrators confirmed to Sky News that “discussions with parties regarding a sale of the business has concluded and that a statement will be made in due course”.

Business

Cambridge semiconductor company at Forefront of investors’ thoughts

Published

3 hours ago

November 6, 2024

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Cambridge semiconductor company at Forefront of investors’ thoughts

A Cambridge semiconductor company has defied the tough funding environment for early-stage businesses by securing £16m to fuel its expansion.

Sky News understands that Forefront RF, which was set up in 2020, will announce this week that it has raised the money from new venture capital backers Octopus Ventures and Cambridge Innovation Capital, as well as existing investors BGF and Foresight Group.

Forefront RF is a fabless semiconductor company which makes multi-band smartphones, wearable and Internet of Things-connected devics simpler to design.

Its technology aims to solve some of the challenges presented by printed circuit board (PCB) size limitations, enabling mobile devices to manage complex radio frequency environments.

The Series A fundraising takes the total sum raised by Forefront RF to nearly £25m.

The company employs 17 people, and intends to use the new capital to support a major product launch in 2026.

Ronald Wilting, Forefront RF chief executive, said its innovation would “help device manufacturers create smaller, more powerful wearables that support a wider range of communication bands”.

Mr Wilting, a former executive at Ericsson and Qualcomm, joined the company in 2022.

“[Forefront RF’s] patented technology will revolutionise how mobile devices are designed, reducing complexity, and streamlining supply chains,” said Owen Metters, investor at Octopus Ventures.

“The continuing proliferation of cellular-enabled devices means there is a significant opportunity for technology such as [the company’s flagship product] ForetuneTM.”

Business

Donald Trump promised to cut inflation – markets expect the opposite

Published

3 hours ago

November 6, 2024

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Donald Trump promised to cut inflation - markets expect the opposite

Donald Trump’s victory was secured on an unequivocal promise to stretched American households that he would “end inflation”, but markets and economists are anticipating his second term will do the opposite.

A combination of corporate tax cuts, government borrowing, lower migration and swingeing tariffs on overseas imports are all expected to heat up the American economy and stoke price rises.

Bond yields on 10-year US Treasuries, effectively the price of borrowing for the American government, were up by 3.6% overnight, rising more than 15 basis points to above 4.4% as European markets opened.

That signals investors believe that borrowing will rise, and the Federal Reserve will be forced to slow rate cuts in order to tackle inflation.

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A clearer picture will emerge on Thursday when Federal Reserve chairman Jay Powell, who Mr Trump said will not be reappointed, announces the next move on rates.

Markets still expected a 0.25 percentage point cut (a similar move to that anticipated from the Bank of England earlier in the day) but Mr Powell’s comments will be scrutinised for signals of what Trump 2.0 means for the prospect of further cuts.

But higher prices for consumers are not necessarily bad news for corporate America, with the dollar surging against sterling and the euro as swing states fell to Mr Trump, and Wall Street futures trading indicating a rally when they reopen with him confirmed as president-elect.

Shares in US banks were boosted with J.P. Morgan, Goldman Sachs and Morgan Stanley all up more than 6% in pre-market trading, along with Tesla, boosted by more than 13% as markets anticipate a dividend for Elon Musk’s campaign-trail support.

Defence stocks were higher too and not just in the US – BAE Systems and Rolls Royce were both up – reflecting likely pressure on America’s NATO allies to make good on their commitments to increase spending.

Bitcoin was also positive in anticipation of a more benign regulatory environment from a president who used the campaign platform to launch his own cryptocurrency.

By contrast renewable holdings, the target of much of Joe Biden’s economic stimulus, were in negative territory, with wind and solar priorities likely to be replaced by a pledge to “drill baby, drill”.

Of most concern to America’s trading partners and allies will be Mr Trump’s promise to erect barriers to free trade.

The man who said tariffs “is the most beautiful word in the world” has pledged a 60% levy on Chinese imports and 10% on those from elsewhere, a deeply protectionist move that could trigger a trade war with China and the EU.

These can only increase prices in the US, with importers paying the levies at the point of entry, and other trading blocs likely to respond in kind.

The EU has already imposed its own 35% tariff on Chinese EVs to the dismay of the continent’s carmakers the measure is intended to protect.

While these tensions play out, post-Brexit Britain, a relatively small player outside the major trading blocs, is likely to be a spectator.

Business

Post Office campaigner Sir Alan Bates says he is yet to receive reply to letter to PM

Published

1 day ago

November 5, 2024

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Post Office campaigner Sir Alan Bates says he is yet to receive reply to letter to PM

Post Office campaigner Sir Alan Bates is yet to receive a reply from Sir Keir Starmer, despite writing to him over a month ago.

Sir Alan said he had written to the prime minister to remind him the “clock is still ticking” on a financial redress deadline for victims.

In his letter, he demanded a March 2025 deadline for compensation for sub-postmaster victims of the Horizon scandal.

Sir Alan confirmed to Sky News he was yet to hear back from the prime minister.

“It was over a month ago,” he said.

“I sent him a reminder yesterday. I told him the clock is still ticking and it’s now five months from the March deadline, which I’m told is still achievable by other professionals.

“So let’s get on with it, that’s all we want. Get on with it.”

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