Stobart Group Limited (LON:STOB) will not be proceeding with a bid for regional airline, Flybe Group PLC (LON:FLYB).
Stobart Group and Flybe enjoy a range of shared interests as well as a growing franchise arrangement between the two groups' airlines and it is Stobart Group's intention to continue the collaborative working relationship between both companies, Stobart’s statement said.
READ: Stobart Group responds to Flybe bid speculation
Flybe’s board said it remains “highly confident” in the prospects for Flybe and its future as an independent entity.
The board set out its “Sustainable Business Improvement Plan” in June 2017, which was focused on driving sustainable profit and cash generation.
The board intends to reduce the airline’s fleet size to what it believes is an optimum level for the number of identified profitable routes and make the business demand-driven rather than capacity-led.