Consortium increases price it will pay for Flybe

The consortium buying regional airline Flybe has said it will increase the price it is paying for the UK regional airline to £2.8 million, up from the £2.2 million previously agreed.

Shares in Flybe have fallen today. Photo: Andrew Milligan/PA Wire

But shares in Flybe tumbled 32% as the group announced it had failed to meet the conditions for receiving a promised £20 million bridge loan.

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Its buyers - a consortium called Connect comprising Virgin Atlantic, Stobart Aviation and an investment firm - have instead offered a revised bridge loan of up to £20 million, with £10 million released on Tuesday to “support the business”.

The buyers said they will pay £2.8 million for the main trading company Flybe and the online arm

Flybe said the revised funding plan “provides the security that the business needs to continue to trade successfully” and that the takeover offer will continue as planned.