Under-seige UK carrier Flybe's Board has recommended shareholders reject a rescue bid from Arizona-base Mesa Air Group and other investors, saying it's not feasible in the time available if Flybe is to continue to fly.

It also says Flybe it already has drawn down the first GBP15 million of the GBP20 million in loans from the original bidder, Connect Airways, a consortium of Virgin Atlantic, Stobart Air and Cyrus Capital Partners.

 

"The sums utilised under the credit facility from the Connect Airways shareholders are repayable not later than 22 February 2019," Flybe's Board said in a statement.

 

"The arrangements with the company's credit card acquirers and banks are vital to enable Flybe to continue to trade and are conditional themselves upon the SPA completing.

 

"Accordingly, the Board emphasises to shareholders that it continues to regard the arrangements entered into with Connect Airways as being the only viable option available to the company which provides the security that the business needs to continue to trade successfully.

 

"The arrangements with Connect Airways preserve the interests of Flybe's stakeholders, customers, employees, partners and pension members."