“Virgin Atlantic Airways is in talks to acquire regional airline Flybe Group Plc (FLYB.L), Sky News reported on Thursday, a week after Flybe said it was in talks to sell itself.
A tie-up with Flybe would provide opportunities to feed passenger traffic into Virgin Atlantic’s long-haul network and access valuable take-off and landing slots at London Heathrow Airport, Sky News reported, citing unnamed sources.
Virgin Atlantic’s main business is UK-to-U.S. flights. The company is owned by Richard Branson’s Virgin Group and U.S. airline Delta Air Lines.
The report did not mention any financial details. Flybe has a market capitalization of about 21 million pounds, according to Refinitiv Eikon data.
Flybe and Virgin Atlantic declined to comment.
Flybe issued a profit warning in October citing weakening demand, higher fuel costs and a weaker British pound.
Sky News had previously reported that Stobart Group Ltd (STOB.L) was likely to be one of the potential suitors for Flybe.”