Shares in Flybe nose-dived today as its majority shareholder, the family trust of the late industrialist Jack Walker, sold its entire 48% stake in the regional airline.
Walker, the steel magnate best-known for turning around Blackburn Rovers, took control of Jersey European Airways — rebranded as Flybe in 2002 — in 1983 through his Walker Steel group. He pumped about £30 million into the airline before his death in 2000 but today his family trust’s Rosedale Aviation Holdings sold its interest, placing the shares with institutional investors by Liberum Capital.
The transaction means Flybe’s free float is now expected to increase to 85%, which chief executive Saad Hammad said “marks another milestone in Flybe’s history”.
Flybe’s second-biggest shareholder is International Airlines Group, the owner of British Airways, which has a 15% stake.
Billionaire investor George Soros and recently departed chairman Jim French are also major backers, according to the airline’s latest filing, in June. The carrier this week set out plans to cut another 500 jobs, reduce routes and review its fleet despite a £13.6 million half-year profit.
Pilots’ union Balpa said it was “shocked” by the latest cuts, which came despite passenger numbers rising 5.6% to 4.3 million in the half year. But Flybe said the cuts will help it save £7 million this year and £26 million next year.
The shares initially fell as much as 15%, before settling down 10p at 94.5p.
