Windfall for Regional air staff
Friday 22 May 1998
The shares are expected to be priced at around 150p. The 1,200 staff have been allocated 4 per cent of the shares worth pounds 3.8m by Sir Michael Bishop, who owns a controlling stake in the airline. Sir Michael will net pounds 10m from the flotation, leaving him with a 30 per cent stake worth pounds 29m.
Terry Liddiard, the chief executive, will make about pounds 1.6m from the sale and will retain a 6 per cent stake worth pounds 5.8m.
British Regional Airlines operates under the Manx Airlines name and as a British Airways franchise. Of its 86 routes, 70 are flown under the BA franchise.
The flotation will raise about pounds 20m net of expenses and will see 60 per cent of the enlarged share capital sold to new investors. The proceeds will enable the group to pay back pounds 8m of debt to Sir Michael's flagship airline British Midland and use the rest to fund a fleet expansion. It currently has 46 aircraft but it has has placed orders for up to fifteen 49-seat Embraer 145 jets which will allow it to expand its route network into Europe. Mr Liddiard said that central Europe was likely to be a particular target.
Despite the success of the Thomson Travel offer with the general public, the British Regional Airlines flotation will not be open to small investors. The flotation will take the form of a placing by Dresdner Kleinwort Benson, which will receive about pounds 2m in fees.
Last year the airline flew 2.16 million passengers on regional routes from the Isle of Man and regional UK airports.
The airline faces little competition on its route network either from rival carriers or other forms of transport.
It made pre-tax profits last year of pounds 3.9m on turnover of pounds 165m but analysts are pencilling in profits of more than pounds 5m this year.
- 2 Pope Francis issues top 10 tips for happiness
- 3 Disney heiress Abigail disowns her share of family profits in West Bank company
- 4 The secret report that helps Israel hide facts
- 5 Israel's propaganda machine is finally starting to misfire
Lost portraits of the Somme: 100 images of Tommies posing before they went over the top. Now can you help to identify them?
Israel-Gaza conflict: 'When Genocide is Permissible' article removed from The Times of Israel website
Mystery of the Siberian holes at the end of the world 'solved': Scientists offer explanation
Pope Francis issues top 10 tips for happiness
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...
£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...