By Reuters Staff2 Min ReadFILE PHOTO: A Flybe plane takes off from Manchester Airport in Manchester, Britain January 20, 2020. REUTERS/Phil NobleFRANKFURT (Reuters) – Lufthansa and Air France-KLM are circling collapsed UK regional airline Flybe to try to obtain its take-off and landing slots at London’s Heathrow Airport, Britain’s Telegraph newspaper reported on Saturday.Lufthansa and Air France-KLM declined to comment.The Telegraph said the two airlines were in talks with the administrators of Flybe, which a week ago ceased trading and went into insolvency for the second time in three years, with all flights cancelled and 276 workers made redundant.Administrators from Interpath Advisory may have just days to agree to a rescue that would avoid the business being wound up, the newspaper said, citing sources in London’s financial community.Lufthansa and Air France-KLM are interested in Flybe’s seven pairs of take-off and landing slots at Heathrow and five pairs at Amsterdam’s Schiphol airport, the report said.Suitors would need to take on many of the bankrupt airline’s liabilities as well as the potentially lucrative assets, it quoted one source as saying.If a buyer for Flybe cannot be found it is likely that the slots would be returned to a central pool run by the airports coordinator, it said.Reporting by Ilona Wissenbach; and Camille Raynaud; Writing by Vera Eckert; Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.
Air France-KLM and Lufthansa are reportedly eyeing an opportunity to acquire landing slots from Flybe.
According to multiple media reports, the pair of renowned German and Dutch airlines have expressed interest in the U.K. regional carrier’s slots at London’s Heathrow Airport and London City Airport. With over 20 million passengers per year, Heathrow is the busiest airport in Europe and one of the busiest in the world.
The interest of Air France-KLM and Lufthansa in the carrier’s landing slots results from Flybe’s recent financial troubles. Last week, the regional airline was taken into administration, leaving many of its 200 daily flights up in the air. Now, the company’s assets, including its landing slots, are up for grabs to whoever can meet Flybe’s asking price.
Both Air France-KLM and Lufthansa have reportedly approached Flybe regarding its assets. The slots are expected to fetch good prices due to their high value, as such slots in London are extremely difficult to come by and access.
Recent reports have suggested that while Air France-KLM is actively seeking to acquire the slots, Lufthansa is in talks with the company but is not willing to offer a high enough price.
If the two airlines are successful in acquiring the slots from Flybe, this will further increase their presence in London’s two biggest airports. This could be especially beneficial for Air France-KLM, which has little long-haul presence in the U.K. at the moment.
However, the fate of the lucrative opportunity for the two airlines still hangs in the balance, as it is currently unclear who will be able to acquire the slots from Flybe. All we can do is wait and see how the situation unfolds.