Exeter-based regional airline Flybe has been bought by a consortium led by Virgin Atlantic.
Connect Airways, which consists of Virgin, Stobart Air and Cyrus Capital, paid £2.8m for the airline on Friday.
It now means that flights currently operated by Flybe will soon be taking off under the Virgin brand.
Cyrus Capital now own 40 per cent of the Exeter-based airline, with Virgin and Stobart aqquiring a 30 per cent stake each.
Flybe tweeted about the takeover on Friday night: “Today's confirmation of the sale of Flybe to Connect Airways secures an exciting future for our customers & employees as we continue to provide vital regional connectivity in the UK & beyond.
"Our confirmed schedule operates as normal & you can book now at http://flybe.com .”
Last month, Devon Live Business looked at how Exeter could be affected by the new owners of Flybe.
1. Will it be business as usual?
Most Read
We know that the the new airline, which will no longer be a publicly owned company, will fly under the Virgin Atlantic brand. So it is likely to mean a change of colours for the planes but how will the business be run? Flybe has been through some turbulent times and in its last trading update in October, it revealed that it was expecting to record a pre-tax loss of £22m in its full year figures . Any new owner would want to look at efficiencies and where to make more money to ensure the business remains sustainable.
2. This is a lifeline for Flybe
The airline could not continue to lose money so finding a buyer has through a lifeline to the business and for regional connectivity as a whole. Imagine how cut off we would feel if we didn't have a regional airline?
This takeover ensures that Flybe no longer has to weather the storm alone. Big costs including backroom administration and fuel are harder to bear for small airlines. But, Connect Airways with the weight of Virgin Atlantic and Stobart, means a a much larger, sturdier operation.
Flybe
Flybe CEO Christine Ourmieres-Widener said: "By combining to form a larger, stronger, group, we will be better-placed to withstand these pressures. We aim to provide an even better service to our customers and secure the future for our people."
To support the on-going operations of the airline, Connect Airways, will initially lend £20m to Flybe and further invest £80m.
Don’t miss
Connect Airways will also buy Stobart Group's regional airline and aircraft leasing business.
3. Passengers can fly further from regional airports
This could be very good news for Exeter. Virgin Atlantic flies long haul and part of the attraction of this new domestic arm of virgin Atlantic is that it could deliver passengers from across the regions right to the door of its departure lounges for its long haul flights.
It means that passengers can check-in their luggage at Exeter or other regional airports and see it again when they arrive at their long haul destination without fuss.
Most Read
4. Will there be changes in routes?
It's expected that new owners will want to review routes, look at the most profitable, the ones that work strategically for partnering operations and those that are making a loss. We don't know if it will result in more, less or different routes.
5. Will the HQ remain in Exeter?
We don't know yet. Unite is calling for urgent talks to safeguard the jobs for Flybe's staff and Flybe chief executive has indicated that the sale will secure the future for its people.
Business leaders across the region have stressed the importance of keeping the HQ in the city .
But it is likely that any new owner of a loss making business will want to make efficiencies where it can. However, on the plus side, it is relatively cost effective to operate a business in the South West in terms of property costs and wages.
Flybe has spoken about the difficultly in recruiting pilots and crew, particularly among women . But being part of a bigger organisation that has links with long haul opportunities may help recruit talented staff to the region - so it could work in our favour.