Britain's Stobart invests 9 million pounds in regional airline Flybe

(Reuters) – British infrastructure company Stobart Group (L:) said on Thursday it would provide 9 million pounds in new funding for Flybe, the privately owned regional airline that was rescued from a collapse by the UK government this week.

Stobart said it had already invested 45 million pounds in Connect Airways, a consortium comprising the London-listed company, Cyrus Capital and Richard Branson’s Virgin Atlantic, which acquired the assets of Flybe last year.

Flybe was rescued on Tuesday after the British government promised to review taxation of the industry and shareholders pledged more money to prevent its collapse. The agreement came a day after reports suggested it needed to raise new funds to survive through its quieter winter months.

Stobart also added that delays in getting regulatory clearance for the consortium’s plans to buy Flybe’s assets, coupled with a number of other factors including legacy issues, impacted its turnaround plan for Flybe.

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