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Though this piece of news is bit strange , reality is , Loganair — the Scottish regional airline based at Glasgow Airport near Paisley , Scotland has been put on the market.
The largest regional airline in the UK by passenger numbers and fleet size operates scheduled passenger routes , PSO routes, Royal Mail contracts and serves oil & gas customers.
Major share holders , the bond brothers — Stephen and Peter Bond , have been backing the the airline for more than 25 years now.
Health of the business is good , infact Loganair is expanding its routes by adding a fifth daily flight on both its Edinburgh and Glasgow services to and from Southampton, increasing interconnectivity for businesses across the UK and offering more flexibility for leisure travellers.
Worth mentioning , Loganair has experienced its busiest summer ever this year , carrying a record number of passengers across the UK and Europe and expectation for Summer 2023 is high.
But , the news today is — After backing the carrier for 25 years as investors , Stephen and Peter Bond have decided to hire some advisors to review options for the sale of Loganair. It’s also being forcasted that the deal might get concluded by mid Next year.
Loganair’s chief executive Jonathan Hinkles revealed ,
“The airline is trading profitably and has repaid its Covid-19 bank debt ahead of schedule. It will very much continue to operate as it is today, with no changes to routes, services or employment. Passenger numbers are growing and 50 per cent ahead of pre-pandemic levels, and our fleet renewal programme is also well advanced, continuing apace over the coming months.”
“The Bonds – Stephen is now 72, Peter is 61 – are committed to finding the right future owner for Loganair, who will act as its custodian for the next generation, just as they and previous owners have done. In the meantime, they remain wholehearted supporters of Loganair until any process is successfully concluded.”
Though Loganair has gone a great job of navigating Covid and repaid a Covid-era government loan , the Bond brothers are now looking for a buyer through Arrowpoint Advisory, the UK-based Merger and acquisition (M&A) advisory firm.
Many questions need to be answered on this sudden development , as the carrier was not a loss making one , rather it had doubled revenues to £161 million and posted earnings of £9m in the year to March, in the process of pandemic recovery.
From the industry , Flybe and Emerald Airlines might be interested to make a deal to consolidate their positions in the market , but it would be interesting to see — ” Who is the Buyer ? “
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