Flybe rescued by Virgin Atlantic?

Flybe, the largest airline by passenger volume at Birmingham Airport,  confirmed it is in talks with Virgin Atlantic about a potential takeover bid. Earlier this week Flybe announced it was considering a sale of their business. The Virgin news sent Flybe’s shares soaring this morning.

The asset Virgin must be looking at would be feed and distribution traffic and, of course, Heathrow and London City slots.  Flybe’s capital value now is ~£21m or $27m at today’s rate.  Hardly a large sum for a working airline.  Moreover, it’s not just Virgin one should be looking at.  The money behind Virgin these days is Delta Air Lines.