Virgin Atlantic is considering an acquisition of U.K.
regional carrier Flybe.
"Virgin Atlantic has a trading and codeshare
relationship and confirms that it is reviewing its options in respect of Flybe,
which range from enhanced commercial arrangements to a possible offer for
Flybe," the company said in an emailed statement. "Virgin Atlantic
emphasizes that there can be no certainty that an offer will be made nor as to
the terms of any offer."
The Virgin Atlantic announcement follows Flybe's Nov. 14
decision to initiate a formal sales process. Flybe said it was in discussions
with a number of "strategic operators" about a potential sale.
According to its website, Flybe flies to 81 airports in the
U.K. and Europe. Flybe flies to 27 airports in the U.K. alone.
The carrier struggled during the first half of its fiscal
year, which ended Sept. 30. After-tax profits dropped 54% year over year while capacity
dropped 9%.
An acquisition of Flybe would be a major broadening of
Virgin Atlantic's operation. At present, the carrier flies long-haul routes
from its bases in London and Manchester, with a focus on the U.S.
Virgin Atlantic is 49% owned by Delta, its transatlantic
joint venture partner.