"We upgrade Flybe to OW(V). We see the
revitalized management team working hard to
reshape the business, fixing the core UK regional
airline. We are eager to understand the network
configuration of the new smaller Flybe, since this
will define how sustainable the business can be.
However, we are reassured by the logic of the
steps taken so far. We see existential doubt
easing and we expect further transactions to create
a larger cash buffer to secure the business against
exogenous events.
We would not be surprised if the company were to
consider raising fresh cash from the financial
markets. We would expect the optimum time for
this to be once the latest restructuring plans have
been secured and the commercial and network
path forwards have been communicated"