Virgin and Stobart take off with Flybe
UPDATE: Flybe has advised shareholders to accept a formal offer from Virgin Atlantic, Stobart Aviation and Cyrus Capital Partners to buy the struggling airline in a deal that values it at just £2.2m.
More to follow.
A takeover bid for regional airline Flybe could be announced later.
It's understood a consortium led by Virgin Atlantic could make an offer after it joined forces with Stobart Group to form a new company.
Flybe put itself up for sale two months ago, blaming a toxic cocktail of currency volatility, rising fuel costs and Brexit uncertainty.
It's understood Virgin Atlantic has agreed to join forces with Flybe's other suitor, Stobart Group, to form a new company that will also comprise the Stobart Air franchise operation.
Under the terms of the proposed deal to be announced on Friday, Virgin Atlantic will operate the network of regional flights provided by a combination of Flybe and Stobart Air.
Stobart Air has operated Flybe routes to and from the Isle of Man for a number of years but that deal is due to end in March.