Connect Airways, the joint venture between Stobart Group Ltd (LON:STOB), Virgin Atlantic and New York hedge fund Cyrus Capital, has received clearance from European regulators for its £2.8mln takeover of Flybe.
“We are pleased to have received merger control clearance which means that Connect Airways can now progress with an exciting future based on a low-cost customer-centric regional connectivity strategy,” said Stobart chief executive Warwick Brady.
Flybe, the struggling domestic airline, sold its assets and operations to Connect Airways in February.
In the same month, Connect also completed the acquisition of Stobart Air’s assets for £40mln.
Its plan is to the Virgin Atlantic brand to operate a network of regional flights provided by both Flybe and Stobart Air.
Stobart shares were down 1.6% to 120.2p in late-afternoon trading on Friday.